A recent analysis has revealed that the non-fungible token (NFT) market struggled in 2024, with untimely price drops and several failed projects.
The research by NFTevening and digital PR agency Storible examined more than 29,000 NFT collections released throughout the year, compiling data from OpenSea and Dune analytics.
NFT Market Profitability Struggles
Dubbed “State of 2024 NFT Drops,” the study found that in 2024, a monthly average of 3,635 NFT collections were created in what it considered to be market oversaturation.
According to the report, 98% of NFT drops were unprofitable and have not registered any trading activity since September. Additionally, the prices of the tokens also reportedly fell by at least 50% within the first three days of their launch.
The incredibly high percentage of NFT drops that recorded fewer than ten trades within the first seven days of their release is a concern because it could mean investors are getting less excited by upcoming projects.
Furthermore, 84% of NFT drops in 2024 had an all-time high (ATH) price equal to their mint price, meaning that they never gained any additional value.
Per NFTevening’s analysis, only a meager 0.2% of all non-fungible token collections yielded profits for investors. Even among actively traded or “alive” NFTs, only 11.9% have proven lucrative, illustrating how deeply projects are struggling to gain any positive outcome.
Excitement for New NFT Projects Drop
Flooding the market with a colossal number of projects has left NFTs struggling to uphold their relevance, directly affecting trading across the industry. This was illustrated by the significant drop in trading volume in the last six months.
Data from a Dune Analytics dashboard reveals that OpenSea, once one of the top NFT marketplaces, has witnessed a 76.32% daily trading volume drop in its values from earlier in the year. Furthermore, minting volumes have also been affected, as 64% of NFT drops have fewer than 10 mints.
Survey Shows NFT Enthusiasts Remain Hopeful
In January, both the NFT and crypto markets struggled to overcome the prevailing bearish sentiment. Nearly ten months later, crypto investors are reaping profits, with Bitcoin hitting all-time highs and dragging several altcoins with it.
NFT traders, however, have been left behind. With factors such as market oversaturation, scams, and tight economic conditions, the situation might get worse before it gets better.
That said, a recent survey by the same publication showed that most NFT enthusiasts are willing to ride the storm. According to the study, more than 66% of NFT traders plan to hold on to their assets, believing they have an undeniable long-term growth potential.
However, about 33% are considering leaving the market, with 72.3% indicating their intention to quit by 2026. Of this number, 36.4% aim to exit by 2024 and 35.9% by 2025, with 27.7% remaining undecided, possibly waiting for market conditions to improve before making a final decision.
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