The non-fungible token market faced its most challenging year since 2020, according to a new report from blockchain analytics platform DappRadar, which noted a 19% drop in trading volumes — falling from $16.8 billion in 2023 to $13.7 billion in 2024.
"On an annual basis, NFT trading volume decreased by 19% in 2024, compared to 2023, and NFT sales saw an 18% decline," the report said. "This made 2024 one of the worst performing years since 2020 in terms of both trading volumes and sales numbers."
The report revealed that NFT sale counts dropped significantly in 2024, falling to 49.8 million from 60.6 million in 2023. "This highlights that NFTs were generally more expensive in 2024, consistent with rising token prices, particularly for Ethereum," the report added.
Yearly NFT trading volumes and sales counts. Image: DappRadar.
The NFT market experienced notable volatility throughout the year. In the first quarter, trading volumes surged to $5.3 billion, a 4% increase compared to Q1 2023. However, this momentum waned as volumes dropped to $1.5 billion in Q3 before recovering to $2.6 billion in Q4.
Despite these fluctuations, 2024's total trading volumes were significantly lower than 2022, the market’s peak year. During 2022, trading volumes reached $57.2 billion with 121.7 million sales, propelled by widespread media coverage and growing adoption.
NFT trading volumes throughout 2024. Image: DappRadar.
The report highlighted significant disparities among NFT collections. Pudgy Penguins emerged as the top-performing collection by trading volume, achieving a 114% increase in floor price despite a 44% decline in sales counts. The collection’s success was attributed to innovative real-world applications, including the launch of plush toys in major retailers like Walmart and Selfridges, as well as partnerships in gaming and sports.
Conversely, Yuga Labs collections, once dominant in the NFT space, faced a decline in both trading activity and floor prices. "Despite their challenges, Yuga Labs has plans for 2025, focusing on its immersive metaverse platform, Otherside, and teasing a new project in collaboration with PP Man," the report said. "This commitment to innovation may shape their future trajectory."
The report said that NFT market trends over the past year may have reshaped perceptions of the sector. “Perhaps 2024 helped us realize that NFTs don’t need to be expensive to prove their importance in the broader web3 ecosystem,” the report added.
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