NFT Market Sees Strong Recovery in 2024, with December Sales Reaching $877 Million
The non-fungible token (NFT) market ended 2024 on a high note, with December sales reaching $877 million, making it the second-best month of the year. According to CryptoSlam data, the total NFT sales for 2024 surpassed $8.83 billion, a 1.1% growth from 2023.
A Year of Ups and Downs for NFTs
Despite the modest growth, the NFT market experienced a wild ride in 2024. After a slow third quarter, with only $1.12 billion in sales, the market rebounded in the fourth quarter, reaching $2.2 billion in sales, a 96% increase. November’s $562 million in sales set the stage for December’s near-billion-dollar showing.
Ethereum-Based Collections Lead the Charge
Ethereum-based collections, such as Pudgy Penguins, Azuki, and Bored Ape Yacht Club, drove the December sales surge. According to NFT Price Floor data, Ethereum NFTs accounted for $488.4 million of the total sales, with Pudgy Penguins leading the pack with over $285 million in trading volume.
Expert Insights: A Repricing of Ethereum-Based Collections
Nicolás Lallement, co-founder of NFT Price Floor, attributed the surge to a repricing of Ethereum-based collections, which was long overdue. He noted that the current “token attached to NFTs” meta, with projects like Pudgy Penguins and Azuki launching or announcing plans for meme/L2 gov tokens, has driven significant interest and repricing in blue-chip NFTs.
A Trickle-Down Effect Expected in 2025
Lallement predicts a trickle-down effect that will benefit the entire NFT ecosystem in 2025. He expects the trend to start with collections tied to airdrops, then extend to Ethereum-based blue-chip PFP collections, generative art, and eventually include Solana and Bitcoin.
Industry Experts Weigh In
DappRadar researchers credited the rally to increasing confidence in the crypto market, with rising token prices fueling optimism and drawing new buyers into the space. Sara Gherghelas, blockchain analyst at DappRadar, noted that improved liquidity and increased engagement with blue-chip collections are fostering confidence among collectors and investors.
Still Far from Its Peak
Despite the year-end rally, the NFT market remains far from its peak years. In 2021, NFTs generated $15.7 billion in sales, nearly double this year’s figures. Lallement believes that for NFTs to return to their 2021-2022 highs, Bitcoin will need to reach a significant price level, and Ethereum will need to establish a new all-time high.
Conclusion
The NFT market’s strong recovery in 2024, led by Ethereum-based collections, has left many wondering what’s next for the space. As analysts predict Bitcoin’s rally will peak in mid-2025, the NFT market is likely to be impacted. With the market still maturing and no one platform or blockchain dominating, the future of NFTs remains uncertain, but one thing is clear: the space is poised for continued growth and evolution.
Source: Crypto.news
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