Second Quarter Sees 45% Decrease in Digital Collectibles Market

Second Quarter Sees 45% Decrease in Digital Collectibles Market

NFT Sales Volume Plummets

NFT sales reached $4.1 billion in the 1st quarter of 2024, by CryptoSlam. Continuing its increased trend from $2.9 billion in Q4 2023, this momentum was short lived as Q2 sales dropped quickly.

NFT Sales in Q1 and Q2 2024

NFT sales in the 1st and 2nd quarters of 2024. Source: CryptoSlam

The downward trend in NFT sales was significant, with the market recording only $2.24 billion in the second quarter. This marks the lowest quarterly volume since Q3 2023, indicating a substantial 45% decline from the previous quarter.

June proved to be particularly challenging for NFTs, with the average sale value dropping by 59% compared to March. Moreover, it is poised to have the lowest transaction volume since March 2021, along with dwindling sales and fewer unique sellers compared to October 2023.

The decline in NFT activity correlates closely with the broader market sentiment towards Bitcoin. With the forthcoming U.S. elections and the Consumer Price Index, as well as other developing market forces driving price declines, analysts have predicted that Bitcoin might go as low as $50,000.

Despite the downturn, NFTs achieved notable milestones in 2024. Solana-based NFTs, for instance, set a new record with an all-time sales volume reaching $5 billion in February. Similarly, Bitcoin-based NFTs saw significant traction, securing the third spot in historical sales volumes with transactions totaling $4.27 billion on June 18, surpassing the Ronin network.

Bitcoin-Based NFTs Ascend

Bitcoin-based NFTs also made strides, with a notable $4.27 billion in sales volume recorded on June 18. This achievement propelled Bitcoin NFTs to third place in all-time sales volumes, surpassing the Ronin network.

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