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The NFT market (non-fungible tokens) recorded its worst performance in 2024 since 2020, with a decline of nearly 20% in trading volumes and sales, according to the latest report from DappRadar. This underperformance occurs paradoxically in a context of general market growth in crypto.
A collapse marked by the volatility of exchanges
The report published on January 14 by DappRadar paints a worrying picture of the NFT market. During the year 2024, the total number of sales fell by 18%, barely reaching 50 million transactions.
The first quarter had started on a positive note with a 4% increase in trading volumes to $5.3 billion, before crashing drastically to $1.5 billion in the third quarter.
This bearish trend stands in stark contrast to the record year of 2022, when trading volumes reached $57.2 billion for 121.7 million sales. The comparison is particularly striking: the NFT market in 2024 shows a contraction of 76% compared to its historical peak in 2022.
The report also highlights a general increase in unit prices of NFTs, correlated to the increase in the value of Ether, the main cryptocurrency used for NFT transactions.
NFT gaming and real utility as lifelines
Despite this gloomy context, some segments of the market have managed to distinguish themselves. Gaming-related NFTs now dominate the market in terms of transaction volume.
Gods Unchained, the card game developed by Epic Games, has emerged as the leader with a sales volume of $152 million, despite a 27% decline compared to 2023.
The Pudgy Penguins collection represents one of the few success stories of 2024, with an impressive 140% growth in its trading volume, reaching $786 million.
The remarkable success of Pudgy Penguins is explained by a strategy of expansion into the real world, notably through partnerships with major retailers like Walmart in the United States and Selfridges in the United Kingdom.
The evolution of the market now suggests a profound transformation: the value of NFTs no longer resides solely in pure speculation, but in their concrete utility and practical applications. This paradigm shift could paradoxically provide a healthier foundation for the future of the sector.
In summary, the year 2024 marks a decisive turning point for the NFT industry, redefining the criteria for success and adoption. As noted by DappRadar in its report, the value of NFTs is no longer measured solely by their price, but by their ability to integrate into the broader Web3 ecosystem and into the daily lives of users.
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Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
