NFT market sales plummeted 45% in the second quarter, are NFTs dead?
According to the latest data from Cryptoslam, NFT market sales fell 45% sequentially in the second quarter of 2024, with total sales falling to approximately $2.28 billion, the lowest point since the third quarter of 2023. The decline is particularly significant compared with sales of $4.1 billion in the first quarter of 2024. NFT sales in June are expected to hit the lowest monthly sales record since October 2023, with sales of only approximately $456 million.
In addition, the average selling price of NFTs has also dropped significantly, from $193 in March to $78 in June, a decrease of 60%. The number of unique sellers and buyers on the market has also shrunk significantly, showing a general decline in interest in NFTs.
Source: Cryptoslam NFT market sales fell 45% quarter-on-quarter in the second quarter of 2024
However, this market decline comes amid Bitcoin’s recent bear trend. After peaking in March 2024, Bitcoin prices have struggled to return to highs and are currently trading around $61,673.
Despite these challenges, the NFT industry achieved some notable milestones in 2024. For example, Solana-based NFTs topped $5.6 billion in all-time sales in February, while Bitcoin-based NFTs surpassed the Ronin Network to become the third-highest NFT platform by full-time sales.
What does SuperRare CEO think about NFT market value collapsing?
As the NFT market continues to be cold, there are also many comments about "NFT is dead" and "NFT value collapse". SuperRare CEO John Crain disagrees. He wrote on his X account: "People forget that we started from scratch six years ago, and two weeks ago NFT sales on Base exceeded $44 million. NFT is obviously not dead." He emphasized that although The market is facing challenges, but this does not mean that the value of NFT is collapsing. On the contrary, he believes that this is an opportunity for further changes in the market.
Source: X SuperRare CEO John Crain says NFT is not dead
Crain added that he believes we will continue to see changes to this business model, noting that an NFT is not a standalone asset but rather a way of recording ownership of an asset. The main purpose of NFT should be to certify ownership and authenticity, and to have the interoperability, secure transfer and verification of blockchain technology.
Crisis is a turning point, and opportunities will come after the bubble
The explosion of the NFT market in 2021 is clearly a speculative bubble. Many people buy NFTs simply in the hope of reselling them at a higher price, and sooner or later this bubble will burst. However, Crain doesn’t think this means the NFT market will disappear entirely. He pointed out that it was similar to the "dot-com" bubble in early 2000, when many Internet technology company stocks disappeared from the stock market after the bubble burst, but there were also some companies that re-emerged more than a decade later and even surpassed the highs during the bubble. .
Crain emphasized that the future of NFTs lies in their potential as tokenization tools for real-world assets (RWA). NFT can be used to tokenize real artworks, real estate and other assets, which requires establishing a definite and clear link between the real assets and the tokens. When this issue is effectively addressed, the RWA market will truly be ready to take off.
Overall, while the NFT market has experienced a significant decline in recent times, Crain believes this is just part of the market’s evolution. The potential of NFTs as a tool to authenticate ownership and authenticity remains huge. As the market continues to change and investor needs adjust, the NFT market is expected to make a strong comeback and find more opportunities in new application scenarios.
