According to DappRadar, the NFT market had its weakest year since 2020 in terms of trading and sales volumes, both dropping nearly 20% in 2024.
What was the worst year for trading volume and sales in the non-fungible token (NFT) market since 2020 in 2024? As per a DappRadar report, the token market is plagued by volatility and increasing prices.
According to the 2024 Dapp Industry Report published by the blockchain analytics platform on January 14, the number of NFT trading volumes decreased by 19% from 2023 to $13.7 billion, and the number of sales decreased by 18% to just under 50 million.
This data indicates that 2024 was one of the worst-performing years since 2020.
DappRadar added that NFTs experienced substantial volatility in Q1, as trading volumes increased by 4% to $5.3 billion in comparison to Q1 2023.
Nevertheless, the “momentum” was brief, as volumes decreased to $1.5 billion in Q3 and subsequently rebounded to $2.6 billion in Q4.
The sales counts were also lower than in 2023, which underscored the fact that NFTs were generally more expensive in 2024, which is consistent with the increasing prices of tokens. Particularly for Ether.
Bitcoin, which rose by 125% in 2024, has been the catalyst for a revitalized crypto market, which has impeded the NFT market’s recovery.
According to DappRadar data, NFTs experienced their most successful year to date in 2022, the year they first entered the mainstream.
Trading volumes reached $57.2 billion, and the market’s sales count reached 121.7 million.
Gaming Is Dominated By Pudgy
According to DappRadar’s report, gaming-related NFTs “clearly dominated” in terms of collections by sales count.
Epic Games’ trading card game Gods Unchained secured the top spot for gaming NFTs last year, with $152 million in sales volume, a 27% decrease from the previous year, and 3.86 million sales, an 18% decrease from 2023.
Despite a 44% decrease in sales count, the Pudgy Penguins collection gained the overall top NFT collection by trading volume, which increased by over 140% from 2023 to $786 million.
Additionally, the collection’s floor price increased by 114%.
DappRadar reported that the collection has launched plush toys in major retailers such as Walmart in the United States and the upmarket department store Selfridges in the United Kingdom, as well as a mobile game and sports partnership.
Further solidifies the idea that NFTs with practical applications continue to demonstrate satisfactory performance.
The report also suggested that 2024 may have contributed to our understanding that NFTs do not require a high cost to demonstrate their significance in the broader Web3 ecosystem.
