Original title: NFT sales hit second-highest level of 2024 in December, data shows
Original authors: Denis Omelchenko, Anna Akopian
Original source: https://crypto.news/nft-sales-hit-second-highest-level-of-2024-in-december-data-shows/
Compiled by: Tom, Mars Finance
As 2024 draws to a close, December's non-fungible token (NFT) sales soared to $877 million, making it the second-best month of the year.
Blockchain-based digital collectibles performed strongly in December, with sales reaching $877 million, making it the second-best month of 2024. This growth caps off a tumultuous year for the NFT market, which saw a significant recovery in Q4.
Data from CryptoSlam shows that total NFT sales in 2024 reached $8.83 billion, exceeding 2023 by over $100 million. Although a 1.1% increase may not seem substantial, it highlights the market's rebound capacity after several months of declining sales.
NFT Sales in 2024 | Source: CryptoSlam
Data shows that December's strong performance is partly due to Ethereum-based series, such as Pudgy Penguins, Azuki, and Bored Ape Yacht Club. According to NFT Price Floor data, Ethereum NFTs accounted for a total sales volume of $488.4 million in December. Pudgy Penguins had the most outstanding performance, with a trading volume exceeding $285 million, while other series like Lil Pudgys and Azuki contributed an additional $222 million.
In a comment to crypto.news, NFT Price Floor co-founder Nicolás Lallement stated that the NFT market was 'strong for Ordinals (Bitcoin) and Solana NFT series in Q1 2024', and further added that 'the repricing of Ethereum series was long overdue.'
"As a trigger for this repricing, we see the current trend of 'token binding for NFTs'. Projects like Pudgy Penguins, Doodles, and Azuki have either launched or announced meme/L2 governance token plans, greatly sparking market interest and repricing blue-chip NFTs."
— Nicolás Lallement
Lallement pointed out that this repricing 'does not solely come from airdrops', as many NFT holders 'have shifted profits gained from speculative memecoin trading to long-term value investments, preferring quality series.' He noted that this trend is particularly evident on Ethereum, which has the most mature blue-chip series.
"Looking ahead to 2025, I expect this effect to gradually transmit to the entire NFT ecosystem. It will likely start with series linked to airdrops, then spread to blue-chip PFP series on Ethereum, generative art (such as Art Blocks), and eventually cover Solana and Bitcoin."
— Nicolás Lallement
The NFT market experienced a genuine rebound in Q4. After a challenging Q3 with only $1.12 billion, Q4 surged by 96%, reaching $2.2 billion. November's sales of $562 million laid the groundwork for December's nearly $1 billion performance.
Industry experts attribute this rebound to the growing confidence in the cryptocurrency market. For example, researchers at DappRadar point out that rising token prices may have sparked optimism, attracting new buyers. DappRadar blockchain analyst Sara Gherghelas believes this differentiation 'might be attributed to renewed trading activity of quality series (such as those produced by Yuga Labs), along with the rise in token prices.'
"The improvement in liquidity for blue-chip series and increased participation is continuously strengthening the confidence of collectors and investors, who now view NFTs not only as speculative assets but also as cultural commodities."
— Sara Gherghelas wrote in a report
Still far from peak
Despite a strong performance at the end of the year, total NFT sales in 2024 are still far below the peak levels of the market. In 2021, NFT sales reached $15.7 billion, nearly double this year's figures. The following year saw a peak of $23.7 billion.
Lallement believes that NFTs have a 'unique positioning' as both high-risk speculative assets and status symbols. He explained that in the later stages of a bull market, participants experiencing asset yield increases often shift their attention from speculative investments to status assets like digital art and collectibles.
"This behavior stems from the psychology of wanting to flaunt wealth and gain recognition within circles. To bring NFTs back to the high levels of 2021-2022, we likely need Bitcoin to reach a significant price point (e.g., $150,000) and Ethereum to set a new historical high (possibly several times higher than before, around $10,000)."
— Nicolás Lallement
Once these milestones are achieved, Lallement anticipates a 'capital rotation from fungible tokens to selective NFT assets.' He believes that when market participants start reallocating profits to high-value series, it could again drive valuation inflation. 'Strong token performance can restore investor confidence, create a wealth effect, and reignite people's speculative and cultural demand for NFTs, viewing them both as investments and status symbols.' He concluded, adding that this dynamic may persist, leading the NFT market to continue experiencing cycles of boom and bust alongside broader cryptocurrency trends.
NFT Activity in Q4 2024 | Source: Tiexo
According to statistics from NFT data analytics platform Tiexo, Blur and OpenSea were the two top markets in Q4, accounting for nearly 70% of total NFT sales. Blur led with $885 million in quarterly sales, while OpenSea closely followed with $607 million. Magic Eden, focusing on Solana NFTs, recorded sales of $365 million.
The diversification of market activity indicates that the NFT ecosystem is still maturing, and there is no single platform or blockchain that completely dominates. While Ethereum still leads in historical cumulative NFT sales, Solana and Bitcoin's shares are gradually increasing.
The rise in December leaves us curious about how NFTs will evolve next. Will the momentum continue into 2025, or will it cool down? We may soon know the answer, as analysts predict that Bitcoin's rise may peak around mid-2025, which could also impact the NFT market.
