NFTs just had their worst performing year since 2020: DappRadar

The non-fungible token (NFT) market in 2024 had its worst year for trading volume and sales since 2020 — marred by volatility and rising token prices, a DappRadar report has found.

The blockchain analytics platform’s 2024 Dapp Industry Report, published on Jan. 14, said that NFT trading volumes over last year fell 19% from 2023 to $13.7 billion while sales counts dropped 18% to just under 50 million, “making 2024 one of the worst performing years since 2020.”

DappRadar added NFTs saw significant volatility as Q1 trading volumes rose 4% to $5.3 billion compared to Q1 2023. However, the “momentum was short-lived” as volumes dropped to $1.5 billion in Q3 and rebounded to $2.6 billion in Q4.

NFT trading volumes (blue) peaked in the first quarter of 2024 before sliding for the remainder of the year. Source: DappRadar 

Sales counts were also lower than in 2023, highlighting “that NFTs were generally more expensive in 2024, consistent with rising token prices” — particularly for Ether (ETH).

The NFT market has struggled to come back alongside a revitalized crypto market spurred on by Bitcoin (BTC), which gained 125% over 2024.

DappRadar data shows NFTs had their best-ever year in 2022, when they first burst onto the mainstream, with trading volumes reaching $57.2 billion and the market’s sales count hitting 121.7 million.

The NFT market in 2024 was down 76% compared to its peak year in 2022. Source: DappRadar

Gaming dominates, Pudgy’s lead

DappRadar’s report said gaming-related NFTs “clearly dominated” in terms of collections by sales count.

Epic Games’ trading card game Gods Unchained took last year’s top spot for gaming NFTs with $152 million in sales volume, down 27% from the year before, and 3.86 million sales, an 18% drop from 2023.

Related: CryptoPunks NFT floor price spikes 13% on rumors of IP sale 

Pudgy Penguins took the overall top NFT collection by trading volume, which bumped up over 140% from 2023 to $786 million, alongside a 114% gain in the collection’s floor price despite a 44% drop in sales count.

The collection has launched plush toys in major retailers such as Walmart in the US and UK upmarket department store Selfridges, along with a mobile game and sports partnerships, which DappRadar said “reinforces the notion that NFTs with real-life utility continue to perform well.”

“Perhaps 2024 helped us realize that NFTs don’t need to be expensive to prove their importance in the broader Web3 ecosystem,” the report added.

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