Non-fungible tokens (NFTs) are on course to record their lowest monthly sales volume since November 2023, according to recent data.
Current Sales Figures
As of July 29, data tracker CryptoSlam reported that the total monthly sales volume of NFTs has reached $393 million. With daily trading volumes falling below $14 million, July 2024 may emerge as the lowest or second-lowest month for NFT sales this year.
In comparison, June 2024 saw NFT sales hit $450 million, marking it as the lowest monthly volume since November 2023.
Persistent Downward Trend
NFTs have been experiencing a decline in sales momentum since the second quarter of 2024. During this period, there was a 45% quarter-on-quarter decrease in sales. The first quarter of 2024 saw a substantial sales volume of $4.1 billion, while the second quarter recorded a significantly lower $2.24 billion.
| Quarter | Sales Volume ($ Billion) |
|---|---|
| Q1 2024 | 4.1 |
| Q2 2024 | 2.24 |
Despite the drop in sales volume, transaction activity for NFTs increased notably in July. According to CryptoSlam, the month saw 9.9 million NFT transactions, a 73% rise from June’s 5.7 million transactions. This uptick in transaction volumes contrasts with the overall decline in sales figures.
| Month | Transactions (Million) |
|---|---|
| June 2024 | 5.7 |
| July 2024 | 9.9 |
Web3 professionals remain cautiously optimistic about the future of NFTs. Jonathan Perkins, co-founder of SuperRare, emphasized that NFTs still hold significant value as a token standard. In an interview with Cointelegraph, Perkins maintained that the utility of NFTs remains unchanged.
Randy Wasinger, founder of CryptoSlam, also expressed confidence in the longevity of NFTs. He stated:
“I certainly wouldn’t say NFTs are dead. In fact, I would say that NFTs, just like all digital blockchain assets, are here to stay.”
Wasinger acknowledged that while some NFT applications driven by past hype cycles might not recover to their previous levels, this does not signal the end for NFTs. He specifically mentioned that profile picture (PFP) NFTs, for instance, may not regain their former popularity and volume.
Looking ahead, Wasinger believes that while the large sales volumes seen in the past may not return soon, NFTs will continue to be integral to more robust Web3 applications. He anticipates that the use cases for NFTs will evolve positively, potentially resulting in increased transaction volumes even if large sales figures are not immediately replicated.
Overall, the NFT market is experiencing a period of reduced sales but increased transaction activity. Industry experts remain optimistic about the sector’s long-term prospects, despite acknowledging that some previous high-flying applications may not see a return to former levels of popularity.
Featured image credit: Freepik
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