CryptoSlam data shows a huge drop in NFT trading volumes, 45% from Q1 to Q2, with digital collectibles set to hit the lowest monthly transactions since March 2021.
No land for NFT collectors
The sales volume for NFTs fell by 45% from the first quarter to the second quarter of 2024, as the Bitcoin market also faced downward pressure after the promising start of the year.
According to CryptoSlam, NFTs had a total sales volume of $4.1 billion in Q1 2024, continuing the uptrend from Q4 2023, which recorded $2.9 billion. But then it stopped.
Prices went down, volumes went down, and June was particularly tough, with the average NFT sale value dropping by 59% compared to March this year.
June is also on track to record the lowest number of NFT transactions since March 2021, with the fewest sales and unique sellers since October 2023.
Industry experts think this is likely because collectors might be holding onto their assets due to unfavorable prices. Which means, they could only sell in loss. So they won’t.
When Bitcoin down, everything down
The decline in NFT trading volume coincides with a negative outlook for Bitcoin. More analysts forecasted that Bitcoin could potentially fall to $50,000, because technical analysis’ price patterns suggest a coming downturn.
Markus Thielen, founder of 10x Research, mentioned that the upcoming United States elections and the Consumer Price Index later in 2024 could also negatively impact Bitcoin’s price.
Bittersweet achievements
Despite the downtrend, NFTs achieved more milestones in 2024. Solana-based NFTs set a new record for their all-time sales volume in February, after it reached a volume of $5 billion. Bitcoin-based NFTs also climbed the ranks.
On June 18, Bitcoin NFTs recorded a volume of $4.27 billion, securing the third spot in all-time sales volume for NFTs, surpassing the Ronin network, which previously held the position.
