CryptoSlam data shows the sales volume of non-fungible tokens (NFTs) decreased by 45% in the second quarter of 2024 due to the downward movement of the Bitcoin market.
In the first quarter of 2024, NFTs maintained the upward momentum they had acquired from the fourth quarter of 2023, with a total sales volume of $4.1 billion, according to CryptoSlam data. In the fourth quarter of 2023, the volume of NFTs was $2.9 billion.
Analysts anticipate that Bitcoin, one of the foremost figures in the NFT sector, will experience a decline in value.
NFTs Experience Downward Trend
NFT sales volumes experienced a substantial decline in the second quarter of 2024 despite an upward trend in Q1. The quarterly volume of digital collectibles was $2.24 billion, the lowest since Q3 2023. This is a 45% decrease from the previous quarter.
Compared to March, the average value of an NFT sale decreased by 59% in June, which was also a challenging month for NFTs. Additionally, June is on the brink of recording the lowest number of NFT transactions since March 2021.
The month will also see the lowest sales volume and number of distinct sellers since October 2023. This could suggest that NFT collectors elect to retain their assets during periods of unfavorable prices.
Bitcoin Market Decline
There is a negative outlook for the Bitcoin market, consistent with the decrease in NFT trading volume. On June 24, analysts predicted that Bitcoin could decline to $50,000 due to emergent price patterns that indicate a more substantial decline.
Markus Thielen, the founder of 10x Research, stated that the Consumer Price Index and the United States elections could adversely affect the price in 2024.
New Milestones for NFTs
In 2024, NFTs achieved numerous milestones despite their downward trend. Solana-based NFTs established a new record for its all-time sales volume in February. CryptoSlam demonstrated on February 23 that the volume of NFTs on Solana exceeded $5 billion.
In the interim, Bitcoin-based NFTs are also ascending the rankings. NFTs on Bitcoin recorded a volume of $4.27 billion on June 18, securing the third position in the all-time sales volume for NFTs. The blockchain has now surpassed the Ronin network, which had previously occupied the position.
