In the last quarter of 2023, the volume of non-fungible tokens (NFTs) amounted to $2.9 billion. Conversely, between March and June, the average value per NFT transaction experienced a sharp decline of 59%. This decrease in value mirrored the broader dip in the cryptocurrency market, evidenced by a 45% reduction in NFT sales volume from the preceding quarter.
Notwithstanding these declines, NFT sales showed resilience, ascending from the fourth quarter of 2023 and peaking at $4.1 billion in the first quarter of 2024, according to data from CryptoSlam. The dominant role of Bitcoin (BTC) in the NFT space contributed to this bearish trend in the market.
However, the narrative shifted in the second quarter of 2024, with NFT sales plummeting after a robust performance in Q1. Recording a volume of $2.24 billion, this quarter represented the weakest period for NFTs since Q3 2023, marking a substantial 45% downturn compared to the previous quarter.
Challenges Persist
The slump continued as the average NFT transaction value nosedived by 59% from March to June, indicating a bleak period for NFTs. The anticipation is that June could witness the lowest number of NFT transactions since March 2021. Notably, there will be fewer distinct sellers and the lowest sales figures since October 2023 during this month. These trends suggest that NFT collectors might be holding onto their assets amidst market uncertainties.
The somber outlook for the Bitcoin market aligns with the decreasing NFT trading activity. Industry experts, on June 24, predicted a potential drop in Bitcoin’s price to $50,000, highlighting further downward trends. Speculation also surrounds the possible impact of the U.S. elections and the subsequent Consumer Price Index (CPI) on price trends throughout 2024.
In the realm of cryptocurrency news today, the Manga-Based DORAE Token witnessed a drastic 99% drop, raising concerns of a rug-pull scenario. This development has caught the attention of market participants and analysts.