Cryptoslam data indicates that the initially strong NFT market is now recording a downward momentum, having declined in critical metrics, including sales volumes, unique sellers, and buyers.
The ongoing rough patch in Bitcoin markets has been blamed for the decline in NFT volume.
NFT Volumes Downward Momentum
According to data from Cryptoslam, the NFT market experienced a significant decline in monthly volumes during Q2 compared to the first quarter of 2024. Sales volumes in Q2 fell by 45% quarter-on-quarter.
In the first quarter of 2024, total sales volumes in the NFT market exceeded $4.1 billion, a substantial increase from the $2.9 billion recorded in Q1 2023. However, in Q2 2024, NFT volumes experienced a significant downturn, reporting a quarterly volume of approximately $2.28 billion, the lowest since Q3 2023.
As per the data, June has seen a significant decline in the average sale price of NFTs, dropping from $193 in March to $78, a decrease of approximately 60%. By June 28, sales volumes were around $419 million, putting June on track to record the lowest sales values since October 2023.
In May, sales volumes were just above $616 million, representing a drop of over 50% from April’s $1.2 billion.
It’s not just the sales volumes that are declining but also other metrics like unique sellers and buyers. In the first quarter, there were about 2,238,925 unique sellers, and the number of unique buyers stood at 3,316,014. In the second quarter, the number of unique sellers and buyers was 1,785,367 and 3,300,566, slightly down from those in Q1.
NFT Milestones Amid Bitcoin’s Downturn
Despite a significant downturn, NFTs have achieved notable milestones in 2024. As reported by CryptoPotato, Solana-based NFTs surpassed $5 billion in all-time sales volume on February 23.
Additionally, Bitcoin-based NFTs moved into the third position for all-time sales volume earlier this month, surpassing the Ronin network.
This decline in the NFT market has coincided with Bitcoin’s bearish trend; after peaking in March 2024, Bitcoin has struggled to regain its highs, dropping to as low as $57,000. At the time of this report, Bitcoin is priced at $61,327, with experts advising cautious accumulation of the cryptocurrency.
