16th January 2025 – (Hong Kong) In 2024, NFT trading volumes experienced a notable decline, dropping 19% to $13.7 billion, marking the lowest level since 2020. This downturn was mirrored by a reduction in sales, which fell by 18% to approximately 50 million, down from over 60 million the previous year. However, amid this overall market slump, certain NFT collections demonstrated remarkable resilience. Notably, Pudgy Penguins saw a 114% increase in floor price, despite a significant 44% decrease in sales, driven by a successful partnership with major retailers such as Walmart and Selfridges, which expanded the brand into physical merchandise.
CryptoPunks also fared well, experiencing a 13% increase in price, largely fuelled by speculation surrounding a potential sale of its intellectual property (IP) rights. Rumours that emerged in January 2024 suggested that Yuga Labs, the entity behind CryptoPunks, might be in negotiations with an undisclosed buyer for the sale of its IP rights. Although specific names were not mentioned, the speculation indicated that the prospective buyer would not be a large Web2 company or another NFT brand like Azuki or Pudgy Penguins.
Trading volumes peaked in the first quarter at $5.3 billion but saw a steep decline to $1.5 billion by the third quarter. A partial recovery occurred in the fourth quarter, with volumes rebounding to $2.6 billion, largely attributed to rising cryptocurrency prices, particularly Ethereum. This trend indicates that while the total number of transactions decreased, higher-value trades became increasingly common, especially among institutional investors focusing on premium collections.
The competitive landscape of the NFT market intensified, with platforms like Blur and OpenSea vying for dominance. OpenSea faced challenges following a Wells Notice from the U.S. Securities and Exchange Commission (SEC) in August, resulting in staff reductions. In contrast, Magic Eden expanded its offerings by broadening its reach from Solana to include Ethereum, Polygon, and newer networks such as Base and Arbitrum. This expansion reflects the NFT market’s growing diversity, as platforms explore new blockchains and target sectors like gaming, real estate, and music.
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