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Langgampos.com - The NFT market has continued its decline throughout 2024, with the CryptoSlam NFT 500 Index dropping over 50%. The downturn has been exacerbated by decreasing demand and lower trading volumes, impacting Ethereum, Solana, Polygon, and Cardano.
The CryptoSlam NFT 500 Index, serving as a market proxy, has fallen nearly 1,300 points year-to-date (YTD) at the time of this report. The index has shown a steady decline this year due to waning demand, reduced trading volumes, and a shift in investor interest.
According to Cryptopolitan News on October 13, 2024, the peak during this period was above 2,400, while the lowest point neared 1,160. The current market value is at its lowest in a year, with NFTs struggling against bearish sentiment since May. Trend lines indicate that January to March represented a stabilization quarter, but April saw a reversal.
The CryptoSlam ETH NFT Composite, which tracks the performance of Ethereum's NFT market, has dropped 36% YTD. The CryptoSlam SOL NFT Composite fell by 50% YTD, while the NFT markets on Polygon and Cardano decreased by 88% and 47%, respectively. This suggests a diminishing interest in NFTs across different blockchains.
Nevertheless, NFT collections like CryptoPunks and three collections from Autoglyphs topped the sales list in the past 30 days. Axie Infinity remains the leader in all-time sales volume, totaling USD 4.28 billion on the Ronin blockchain, with over 22.1 million transactions and nearly 2.1 million unique buyers.
The Cryptoslam rankings place the Bored Ape Yacht Club (BAYC) on Ethereum in second place with sales of USD 3.19 billion, 43,717 transactions, and 6,163 unique buyers. CryptoPunks ranked third, achieving sales of USD 2.9 billion through 24,289 transactions and 2,815 buyers on Ethereum.
Binance Research reported that Bitcoin Puppets and Ordinals-based NodeMonkes saw a brief uptick and moved against the trend in September. Additionally, Blast experienced a 30% monthly increase, likely due to activity from the trading card game Fantasy.top.
In the past month, global NFT sales volume reached USD 330 million after a 44% decline, according to CryptoSlam. Total NFT transactions for the month amounted to 6.6 million, also reflecting a 34% decrease.
Of this volume, USD 37 million was linked to wash trading, with 80,919 wash transactions. The good news is that the practice of creating false demand by repeatedly trading the same NFTs through wash trading has seen a reduction of up to 90%.
Trading Profit
Despite this, overall trading profits for the month have declined by 34%, resulting in a loss of USD 17.5 million.
Some analysts view the market's decline as the end of speculative trading. According to GII Research, the global NFT market is expected to grow at a CAGR of 30% between 2024 and 2028.
This indicates that as the market matures, the sustainability of NFTs and double-digit growth will not solely rely on the surrounding hype. Utility may drive the market forward if it is to maintain the predicted annual growth rates.
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