The non-fungible token (NFT) market has taken a nosedive this year, revealing challenging patterns for enthusiasts and investors in this type of asset.
A recent study by NFTEvening and Storible, analyzing the performance of more than 29,000 new NFT collections, presents a stark reality: most of this year’s releases failed to find lasting value and engagement.
NFT market in trouble
Using data from Dune Analytics and OpenSea, the research focused on collections released between January and August 2024. The study confirmed results using the NFT marketplace API and analyzed key metrics such as minting and trading volumes, price movements, and trading activity to assess the overall health of the market.
According to the research, nearly 98% of 2024 NFT projects are effectively “dead.” This means they have seen little to no trading activity since September.
Furthermore, only 0.2% of NFTs launched in 2024 have turned a profit for their investors. Even among the “live” ones that still see some commercial activity, only 11.9% have been profitable.
Despite the abundance of new collections, the report also notes that over 64% of 2024 launches were registered in less than 10 minutes. This indicates a difficulty in attracting initial buyers. Compounding the problem, 98% of these projects saw fewer than 10 deals in their first week.
What’s more, a staggering 98% of 2024 releases saw their prices drop by at least 50% within just three days of launch. The rapid depreciation highlights how quickly buyer enthusiasm wanes.
State of NFT Releases 2024. Source NFTEvening
There is also limited value growth, with about 84% of these projects reaching a maximum price equal to their minting price. This means they have not appreciated in value.
These findings reflect the significant hurdles facing the market as it grapples with a glut of new collections, each competing for a limited pool of active buyers.
Read more: How to Create an NFT for Free Using Picsart
Saturation, disinterest and future directions
A key finding of the report is the saturated nature of the NFT market. With an average of 3,635 collections created monthly, supply has far outstripped demand. This makes it increasingly difficult for new projects to gain traction.
Furthermore, the sharp decline in minting and trading activity signals a growing disconnect between creators and collectors, raising questions about the sustainability of an overcrowded market.
The gap between successful and failed collections, as well as variations in project lifespans, reveal that the non-fungible token market is no longer the cash cow it once seemed. As the industry becomes more challenging, creators and project teams are at a crossroads. To survive, projects must offer more than just collectibles.
Thus, building a sustainable and engaged community, providing genuine utility, and fostering long-term value has become essential to stand out. Therefore, as quick drops and flip culture lose their appeal, a shift to community-driven and utility-based NFTs may become the norm.
In the meantime, investors should exercise caution and carefully evaluate projects to avoid losses in a market where profitability is increasingly difficult to achieve.
The article 98% of NFTs launched in 2024 are ‘dead’, report reveals appeared first on BeInCrypto Brasil.
