SAN FRANCISCO, Tuesday, June 11, 2024 – The non-fungible token (NFT) market experienced a significant slowdown in May, according to data from blockchain tracker CryptoSlam.1
It should be noted that on May 30, the US treasury issued a warning that investing in NFT was risky due to its volatility. It also said that the non-fungible tokens may be exploited by illicit actors for money laundering and even terrorist financing.
Global NFT sales volume dropped a sharp 54% compared to April, falling from over $1 billion to $624 million.
This decline follows a period of strong growth in the NFT sector throughout the first half of 2024. However, the recent drop suggests a potential cooling off in the market, mirroring a broader trend of volatility in cryptocurrency prices.
Further drilling down into the data, CryptoSlam reveals a decline in sales activity across various blockchain platforms.
Bitcoin (BTC) saw the most dramatic drop, with NFT sales plummeting over 71% in May compared to April.
Ethereum (ETH), the leading platform for NFTs, experienced a more moderate decrease, with sales volume falling by more than 55%.
Finally, sales on the Solana (SOL) blockchain also dipped considerably, dropping by 48% last month.
The reasons behind the decline in NFT sales volume are not entirely clear. Some experts speculate that a combination of factors, including increased market uncertainty surrounding cryptocurrencies and a saturation of certain NFT categories, may be contributing to the slowdown.
- cointelegraph.com: https://cointelegraph.com/news/nft-sales-drop-may-2024-bitcoin-ethereum-solana[↩]
