NFT trading volume plummeted by 63% in just two months

Despite gaining momentum in the final months of 2024, the trading volumes of non-fungible tokens (NFTs) last month saw a decrease of over 60% from December, coinciding with a downturn in the crypto market.

In December, NFT trading volumes reached $1.36 billion, but then fell by 26% in January and another 50% in February, as reported by DappRadar analyst Sara Gherghelas in a March 6 industry report.

Gherghelas mentioned that although NFTs had been showing signs of a resurgence recently, their pace has slowed since the beginning of the year. The decline in NFT valuations was attributed to their correlation with crypto prices.

There was a consistent increase in NFT trading volumes in the latter half of 2024 before experiencing a drop at the start of the new year. The overall crypto market capitalization hit a record high of $3.71 trillion on Dec. 9 last year, with many cryptocurrencies registering significant price gains.

Bitcoin (BTC) briefly surged above $109,000 on Jan. 20, surpassing its previous all-time high of over $108,000 on Dec. 17, prior to the inauguration of former US President Donald Trump. However, most of the gains in the crypto market were erased in February due to concerns about Trump’s tariffs on US trading partners.

Despite a decline in decentralized app activity in February, NFT activity bucked the trend, experiencing a 6% increase with 3.5 million users engaging with NFT platforms, showing a growing interest in AI-powered assets.

Profile picture NFTs were the most popular, generating $243 million in trading volume across 76,385 sales. Gaming NFTs had the second-highest trading volume, recording $41 million and 421,853 assets traded, while sports NFTs dominated sales with 659,097 transactions and $7.7 million in volume.

In 2024, NFTs had their worst year since 2020, with trading volumes totaling $13.7 billion and sales under 50 million, partly due to volatility and rising token prices. However, in 2022, NFTs had their best year ever, reaching trading volumes of $57.2 billion and sales count of 121.7 million.

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