August 2024 saw a significant downturn in the Non-Fungible Token (NFT) market, with monthly sales falling below $400 million for the first time this year. The total sales for the month reached $374 million, a sharp 76% drop from the peak of $1.6 billion in March 2024.
NFT sales took a hit in August, dropping 41% to $376M. Buyers fell by 29% to 127K, and sellers by 17% to 93K. Total transactions also plummeted 50% to 7.4M, highlighting a decline in demand. Compare this to the peak in Jan 2022 when sales exceeded $6.5B! #NFTs #Crypto⊠pic.twitter.com/WSHs9hnIzE
â NFTevening ɹᎠ(@NFTevening) September 2, 2024
NFT Sales on Steady Decline Since JanuaryÂ
The NFT market has been experiencing a steady decline throughout the year. In the first quarter of 2024, sales were huge at $4.1 billion. Albeit, by the second quarter, sales had dropped to $2.24 billion, marking a 45% decrease, data from NFT tracker CryptoSlam shows. The downward trend continued, with sales bottoming to $1.2 billion in April and further dropping to $598 million in May.
NFTsâ highest vs. lowest monthly sales in 2024. Source: CryptoSlam
Several factors have contributed to this fall. Solo Ceesay, co-founder and CEO of social wallet Calaxy, noted that speculative capital has shifted from NFTs to meme coins, leading to a decrease in demand for digital collectibles. Additionally, the number of transactions has reduced largely. In August, there were 7.3 million NFT transactions, a 31% drop from July.
Despite the overall drop, there are some positive signs. The average value of NFT sales increased by 27%, from $39.93 in July to $50.74 in August. This supports that while the number of transactions has decreased, the value of each transaction has gone up. Early data from September indicates that the average sale value has continued to rise, reaching $86.04 per transaction.
GM! The iconic @CryptoKitties had a surprise Egg NFT mint over the weekend for .008 $ETH, and the collection has already seen over $500K in sales on secondary ($347K in just the past 24h). What could be coming next?Are We Back? CryptoSlam 500 NFT Index (30d) -⊠pic.twitter.com/vzX8BtFHMb
â CryptoSlam! (@cryptoslamio) September 2, 2024
Reactions Are Mixed At The MomentÂ
Industry experts have mixed reactions to this trend. Some believe that the decline is a natural correction after the explosive growth of the past few years. Ezra Reguerra, a crypto analyst, stated, âThe NFT market is maturing. Weâre seeing a shift from speculative buying to more thoughtful investments.â
Others are more cautious. Victor, a writer for Altcoin Buzz, commented, âThe sharp drop in sales is concerning. It raises questions about the sustainability of the NFT market in its current form.â
The decline in NFT sales in August 2024 marks an interesting moment in the digital collectibles market. While the drop below $400 million is concerning, the increase in average sale value shows a promising comeback.
The post Monthly NFT Sales Hit Yearly Low, Drops Below $400M appeared first on Coinfomania.