In 2024, the non-fungible token (NFT) market faced a sharp downturn. According to research by NFTevening and Storible, out of more than 29,000 collections released throughout the year, 98% were unprofitable. Most projects lost up to 50% of their value within the first three days after launch.
These figures reflect declining investor interest amid a saturated market. Only 0.2% of collections yielded profits, and among the actively traded projects, only 11.9% managed to deliver positive returns.
Falling Trading Volumes and Activity
A drop in trading volume further highlighted the market’s difficulties.Dune Analytics shows that daily trading volume on OpenSea declined by 76% since the start of the year. More than 64% of new collections failed to surpass ten transactions in their first week post-launch.
Particularly striking is the statistic that 84% of collections never managed to push their price above the initial offering. Experts say these numbers underscore a lack of innovation in new projects and growing audience fatigue.
Market Leaders
Despite the overall decline, certain collections continue to dominate. CryptoPunks remain at the forefront with a commanding 41% market share. Their closest competitors are Bored Ape Yacht Club with a 15.65% share and Pudgy Penguins in third place at 13.19%. Pudgy Penguins’ active growth began after the team announced plans to launch the ecosystem’s native PENGU token. We covered this in more detail here.
Conflicting Sentiment Among Investors
Despite the downturn, surveys indicate that 66% of traders still believe in the long-term potential of NFTs. However, 33% of respondents plan to leave the market, and 36.4% intend to do so by the end of 2024.
It’s worth noting that industry leaders also believe in the market’s revival. Yat Siu, CEO of Animoca Brands, recently stated that the NFT market would not only regain its former glory but also surpass its best performance from 2021.
Renowned crypto investor Andrew Kang shares this optimism. He believes that the current focus on memecoins is temporary and that the spotlight will return to NFTs as early as 2025. The market is poised for the biggest bull run in its history, Kang says, with AI as a potential growth driver.
Financial Analysis
According to Statista, the NFT market revenue in 2024 reached $683.9 million, below last year’s figures. The outlook for 2025 remains pessimistic, with revenue expected to drop to $608.6 million and an annual decline of 11.01%.
Nevertheless, the United States remains the largest market, generating $119.8 million in revenue. By 2025, the number of NFT users is expected to reach 11.64 million, with an average revenue per user of $59.
Year-End Summary and Future Outlook
2024 proved to be a challenging year for the NFT sector, which is undergoing a phase of consolidation. The reduction in successful projects and declining activity highlight the need to rethink strategies.
Still, experts maintain cautious optimism. In 2025, key growth drivers could include new innovative solutions, integration with AI and DeFi, and a stronger focus on delivering unique value to users. The market will continue to evolve, and those who adapt to changing conditions are likely to emerge as winners.
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This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
