Written by: HAMSTER
In the first half of 2024, the NFT market experienced dramatic fluctuations.
T&D:
Total transaction volume data: Although the transaction volume reached US$1.28 billion in January 2024, a year-on-year increase of 35.3% from January 2023. But the market subsequently experienced ups and downs, especially in May, when the transaction volume plummeted to US$795 million, a drop of 42% from April.
Multi-chain transaction volume: Ethereum continues to dominate the NFT market, but its market share fluctuated in the first half of the year, falling from 66.67% in January to 45% in April, before recovering to 58.22% in May and 62.2% in June %. Driven by the Ordinals protocol, Bitcoin’s share of the NFT market grew significantly, from 9.4% in January to 33.47% in April, but fell back to 12.37% in May and 11.76% in June. Solana's market share has remained relatively stable, while Polygon's has seen significant fluctuations.
Major NFT trading platforms: Blur maintains its leading position, accounting for 46.38% of the market share. Magic Eden has expanded its market share to 11.74% through the expansion of multi-chain support and airdrop plans, while OpenSea's market share has dropped to 15.96%. In addition, emerging platforms such as OKX NFT and Tensor have maintained and expanded their respective market shares through innovative incentives.
Total transaction volume data: huge fluctuations in the first half of this year, and transaction volume plummeted in May
In December 2023, total NFT market trading volume reached record levels. NFT sales on the Bitcoin network exceeded $881 million for the first time, setting a new high for single-month sales, according to NFT Pulse. This figure significantly exceeds the sales of Ethereum and Solana, with Ethereum’s NFT sales at $365 million and Solana’s $325 million. Overall, the entire NFT market reached approximately $1.7 billion in trading volume in December 2023.
But in January 2024, the transaction volume of the NFT market fell to $1.28 billion, down 24.7% from December 2023. However, the overall transaction volume in the first half of 2024 showed an upward and downward trend, and in March 2024, the total transaction volume reached a high of $2.157 billion. In May, the total NFT transaction volume plummeted, from $1.38 billion in April to $795 million, a decrease of 42%. The NFT transaction volume on the three major blockchains, Bitcoin, Ethereum, and Solana, fell by 80.5%, 20%, and 50.1%, respectively. The number of NFT traders in May also decreased compared with previous months, especially Bitcoin, where the number of traders decreased from 393,000 in April to 114,400.
Year-on-year comparison between 2024 and 2023
January Comparison
January 2023: NFT market volume approaches $946 million.
January 2024: Trading volume is $1.28 billion, up 35.3% from the previous year, showing continued market growth.
May Comparison
May 2023: NFT market volume is approximately $870 million.
May 2024: Transaction volume fell to $795 million, down 8.6% from the same period a year earlier, reflecting a significant decline in the market.
Data source: NFT Pulse
Summarize
Overall, despite strong market performance at the start of 2024, the market has experienced significant volatility and decline over time, particularly in May, where trading volume and activity declined. This indicates that the NFT market faces challenges in the first half of 2024 and requires further observation of future market trends and recovery potential.
Multi-chain transaction volume: BTC market share continues to expand, once surpassing Ethereum
In the first half of 2024, the transaction volume market share of the NFT market changed significantly between different blockchains. The following is the transaction volume market share of each major blockchain:
Ethereum: Its market share in 2023 was 72.3%. It fell in the first half of 2024 and then rebounded, losing its leading position for a time.
Bitcoin: The market share was 12.9% in 2023. The trading volume fluctuated greatly in the first half of 2024. The market share once increased to around 40%, and then fell back to around 12%.
Solana: The market share in 2023 was 7.4%, but in the first half of 2024, Solana's market share increased significantly, reaching about 20%. Solana NFT trading volume market share is the most stable amid market fluctuations.
Base: Its market share in 2023 is negligible at 2.3%. However, due to the launch of L3 by MEME and Degen, its NFT transaction volume has skyrocketed, reaching a maximum market share of 10.62%.
Polygon: Its market share was 2.2% in 2023, but in the first half of 2024, its trading volume plummeted and plummeted, with huge fluctuations.
Data source: NTF Pulse
Specific monthly data (data source: NFT Pulse)
January 2024: BTC’s NFT transaction volume market share in January was 9.4%, Ethereum was 66.67%, Solana was 17.75%, and Polygon was 5.9%. What is worth noting this month is that Polygon’s transaction volume plummeted week by week.
February 2024: BTC NFT trading volume increased significantly, driven mainly by Ordinals collections such as NodeMonkes, with market share rising to 18.37%, compared to Ethereum’s 62.15% and Solana’s 17.85%. Polygon’s share fell to 1.32% this month. Affected by the MEME sector, the NFT trading volume of Base’s chain began to pick up this month, accounting for 0.15% of the market share.
March 2024: In March, BTC NFT transaction volume continued to rise, accounting for 26.02% of the market share, Ethereum was 48.76%, and Solana was 21.44%. This month, Ethereum NFT transaction volume share has declined week by week, and Base has emerged as a dark horse, with a transaction volume market share of 6% in the last week of March.
April 2024: BTC NFT's market share reached 33.47%, showing strong growth momentum, especially in early April, when its trading volume share once exceeded ETH, reaching 43.5%. In contrast, Ethereum NFT's trading volume market share fell to 45%, Solana's market share fell slightly, but still remained at around 16.37%, and Base was 3%.
May 2024: In May, BTC’s NFT trading volume market share plummeted to 12.37%, while Ethereum’s market share recovered to 58.22%. Solana was 13.5%, while Base rose to 10.62%.
June 2024: As of the time of writing this article (June 24), BTC NFT transaction volume continued to decline in June, accounting for 11.76% of the market share, while Ethereum's market share recovered to 62.2%. Solana fell to 9.4%, Base fell to 4.56%, and Polygon rebounded to 15.83%.
Summarize
To sum up, the NFT market’s transaction volume market share experienced significant changes between different blockchains in the first half of 2024. The significant growth in BTC NFT trading volume has been driven primarily by the Ordinals protocol. In January, BTC had a market share of 9.4%, but by April this share had jumped to 33.47%, briefly surpassing Ethereum at the beginning of the month. Although BTC’s market share fell back in May and June, to 12.37% and 11.76% respectively, its overall performance still showed strong growth momentum.
In contrast, Ethereum’s market share, while fluctuating in the first half, remained overall dominant, falling from 66.67% in January to 45% in April before recovering to 58.22 in May and June. % and 62.2%. Solana's performance has been more solid, while Polygon's market share has experienced more significant fluctuations, especially rebounding to 15.83% in June.
These market share changes not only reflect the dynamics of the NFT market, but also demonstrate the competition and development potential of different blockchains in the NFT ecosystem. As new protocols and new projects continue to emerge, the NFT market share may continue to change in the coming months and years, bringing more opportunities and challenges to market participants.
Marketplace market share changes: Blur continues to lead, Magic Eden briefly took the lead in late May and early June
Market share of major NFT trading platforms in 2023
Blur: Due to its airdrop incentive strategy, zero transaction fees, and no enforced creator royalties, Blur successfully surpassed OpenSea to become the largest NFT Marketplace with a market share of 47.61%. This strategy attracted a large number of users, especially those who wanted to maximize their trading profits.
OpenSea: Despite facing fierce competition, OpenSea has maintained its position as the leading NFT trading platform, accounting for 20.36% of the market share. As a veteran platform in the market, OpenSea is still the first choice for many users, especially within the Ethereum ecosystem.
X2Y2: The average market share in 2023 is 8.79%. It has a relatively high market share at the beginning of the year, but its market share is negligible at the end of the year. X2Y2 attracted a large number of users through low transaction fees and no royalty strategy in the early stage, but as market competition intensified, its advantages gradually weakened.
OKX NFT: In 2023, OKX NFT Marketplace emerged as a dark horse, with an average annual market share of 7.4%, mainly due to its focus on the BTC ecosystem, becoming one of the main trading platforms for Ordinals NFT in the second half of the year. OKX's multi-chain support and zero-fee transactions have quickly attracted a large number of users, especially in the Bitcoin ecosystem.
Magic Eden: Occupying 2.66% of the NFT market, dominated by Solana, its share grew significantly in late 2023, mainly due to its expansion into multiple blockchains, including the BTC chain.
Data source: NFT Scan
Overall, the NFT market will show significant changes in market share in 2023. Major NFT trading platforms not only continue to innovate in technology and user experience, but also attract and retain them by expanding multi-chain support and introducing various reward mechanisms. user. This diverse competitive environment not only promotes the development of each platform, but also promotes the prosperity and progress of the entire NFT market.
Market share of major NFT trading platforms in 2024: as of June 24
Blur: It continues to maintain its leading position, occupying 46.38% of the market share. Its main transaction volume still comes from Ethereum, and the transaction volume of Blast chain only accounts for 0.56%.
OpenSea: Faced with fierce competition, OpenSea did not make any innovative moves this year, resulting in its market share falling to 15.96%. Despite losing its leading position, OpenSea is still one of the most important NFT trading platforms in the market, especially with a broad user base in the Ethereum ecosystem.
X2Y2: The market share is negligible and it has almost disappeared from the competition in the NFT track.
OKX NFT: stable performance, market share maintained at around 5.37%. As a multi-chain supported platform, the OKX NFT market supports multiple blockchains such as Ethereum, Solana, BSC, etc., and has attracted many users with its user-friendly interface and low transaction fees.
Magic Eden: Its market share continued to expand, reaching 11.74%, becoming the main trading platform for Solana and BTC NFT. Magic Eden's expansion strategy and potential airdrop plan have led to a sharp increase in its user base and transaction volume.
Tensor: Due to the airdrop incentive program, Tensor, one of the main trading platforms for Solana NFT, has seen its market share rise to 4.49% in this half year. Tensor’s incentive strategy significantly increases user participation and transaction activity.
Data source: NFT Scan
Summarize
From the above information, we can see that Blur and Magic Eden performed particularly well in 2024, while OpenSea maintained its important position despite losing some market share. Emerging platforms such as OKX and Tensor are also gradually expanding their market influence through innovative incentives.
in conclusion
In the first half of 2024, the NFT market experienced significant volatility and the overall performance was unstable. Although the launch of the Bitcoin ETF brought new capital inflows, it did not significantly lead to a rise in the entire market. On the contrary, recent sharp declines have triggered panic in the market, with trading volumes falling sharply and investor sentiment sluggish. This kind of market volatility shows high risk and uncertainty, and whether the NFT market can usher in a bull market in the future remains an open question.
