The sales volume for non-fungible tokens (NFTs) dropped by 45% quarter-on-quarter in 2024 as the Bitcoin market shows a downward momentum.
CryptoSlam data showed that in the first quarter of 2024, NFTs had a total sales volume of $4.1 billion, maintaining the upward momentum it gained from the fourth quarter of 2023. In Q4 2023, NFTs recorded a volume of $2.9 billion.
The downward momentum comes amid analysts predicting a negative outlook for Bitcoin (BTC), one of the key leaders in the NFT space.
Downward momentum for NFTs
Despite experiencing an upward trend in Q1, NFT sales volumes saw a significant decline in the second quarter of 2024. Digital collectibles recorded a quarterly volume of $2.24 billion, marking the lowest quarter since Q3 2023. This represents a 45% decrease compared to the previous quarter.
June was also a tough month for NFTs, as the average value of an NFT sale dropped by 59% compared to March. Furthermore, June is also on its way to recording the lowest number of NFT transactions since March 2021.
The month will also record the lowest sales volume and number of unique sellers since October 2023. This might indicate that NFT collectors choose to hold on to their assets while the prices are unfavorable.
Bitcoin market downturn
The decline in NFT trading volume coincides with a negative outlook for the Bitcoin market. On June 24, analysts forecast that Bitcoin could potentially drop to $50,000 due to emerging price patterns suggesting a more significant downturn.
Markus Thielen, the founder of 10x Research, said that the United States elections and the Consumer Price Index later in 2024 could also negatively impact the price.
Related: Marc Cuban wallet seen dumping NFTs after 2 years of inactivity
New milestones for NFTs
Despite its downward trend, NFTs reached several milestones in 2024. Solana-based NFTs set a new record for its all-time sales volume in February. On Feb. 23, CryptoSlam showed that NFTs on Solana reached a volume of $5 billion.
Meanwhile, Bitcoin-based NFTs are also climbing the rankings. On June 18, NFTs on Bitcoin recorded a volume of $4.27 billion, taking the third spot in all-time sales volume for NFTs. The blockchain surpassed the Ronin network, which previously held the spot.
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