Non-fungible tokens (NFTs) are poised to reach their lowest monthly sales volume since November 2023.
On July 29, data tracker CryptoSlam reported that the monthly volume of digital collectibles had reached $393 million. With NFTs experiencing a daily volume of less than $14 million, July may turn out to be the lowest or second-lowest month for this asset class this year.
In June 2024, NFTs’ monthly sales volume recorded an w-month low, having only $450 million in sales. This marked the asset class’ lowest monthly record since November 2023.
NFTs continue their downward momentum
Data shows that NFTs have been trending downward since the second quarter of 2024. Within the quarter, NFTs had a 45% quarter-on-quarter drop. The first quarter of 2024 had a sales volume of $4.1 billion, while the second quarter only had $2.24 billion.
Despite experiencing lower volumes earlier in July, NFTs saw a significant increase in transaction volumes for the month. According to CryptoSlam data, there were 9.9 million NFT transactions in July, a 73% rise from June's 5.7 million transactions.
Even though NFT volumes are lower, Web3 professionals expressed optimism for the asset class. SuperRare co-founder Jonathan Perkins previously told Cointelegraph that NFTs continue to be an extremely powerful token standard, and nothing has changed about their utility.
Related: Web3 experts cite innovation and PR as key challenges for NFT adoption
NFTs are still “here to stay”
In a Cointelegraph interview, CryptoSlam founder Randy Wasinger said that despite its lower volumes, NFTs will stay. He explained:
“I certainly wouldn’t say NFTs are dead. In fact, I would say that NFTs, just like all digital blockchain assets, are here to stay.”
The executive believes that while some NFT applications fueled by previous hype cycles may never return, this is not the end for NFTs. According to Wasinger, certain use cases have peaked and may not regain their previous levels.
“PFPs [picture-for-profile], for example. I don’t see that ever regaining the volume and adoption level it had a year or two ago,” Wasinger added.
However, the CryptoSlam founder believes that more robust Web3 applications will likely need NFTs. The executive also believes that use cases will continue to evolve positively. “I don’t know if it’ll necessarily be reflected in large sales volume numbers like we’ve seen at least anytime soon, but I do foresee it manifesting in perhaps larger transaction volumes,” he explained.
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