Catenaa, Monday, November 25, 2024 –The non-fungible token (NFT) market faced significant challenges in 2024, with most projects proving unprofitable, according to a study by NFTevening and Storible.
The analysis reviewed more than 29,000 NFT collections using data from OpenSea and Dune Analytics.
The report, titled State of 2024 NFT Drops, highlighted that 98% of NFT releases recorded no trading activity since September, with prices dropping by at least 50% within the first three days after launch. Monthly, an average of 3,635 collections entered the market, a level of oversaturation that contributed to the downturn.
Of all NFT drops, 84% peaked at their mint price, failing to gain additional value. Only 0.2% of collections yielded profits for investors, while just 11.9% of actively traded NFTs turned out to be lucrative. The study pointed to waning investor enthusiasm, with fewer than 10 trades registered for most projects within a week of their release.
The broader market’s decline is also evident in trading volume. OpenSea, once a leading NFT marketplace, saw its daily trading volume plummet 76% this year. Minting activity dropped significantly, with 64% of NFTs having fewer than 10 mints.
Despite the downturn, optimism persists among some NFT traders. A survey indicated that 66% of traders plan to hold onto their assets, citing long-term potential. However, 33% are considering leaving the market, with many planning to exit by 2026 if conditions do not improve.
The findings highlight the ongoing struggles of NFTs to regain relevance in a competitive and challenging market.
