NFT Market Bloodbath: 98% of 2024 Drops Failed

The NFT market is drowning in a sea of new projects, with a staggering 98% of 2024 drops flatlining, according to a new study by NFTEvening and Storible. Oversaturation, coupled with plummeting prices and rock-bottom investor engagement, raises serious questions about the future of this once-booming digital asset class.

NFT Market Study

The study, which analyzed 29,079 NFT collections minted between January 1 and August 31, 2024, painted a grim picture of a market struggling to maintain momentum. Key findings revealed a chilling reality: only a minuscule 0.2% of these projects generated profits for investors. The vast majority saw rapid price declines, with 98% experiencing a 50% drop within just three days of launch.

The sheer volume of new collections was a major contributing factor to the downturn. An average of 3,635 NFT projects launched each month in 2024, creating an oversaturated market where projects struggled to gain traction. The study found that 64% of these drops attracted fewer than 10 mints, and a staggering 98% saw fewer than 10 trades in their first week.

This lack of engagement translated directly to price performance. A whopping 84% of 2024 NFT drops saw their all-time high price equal their mint price, indicating a complete absence of value appreciation. Even among the small fraction of projects still actively traded, only 11.9% managed to turn a profit.

“While NFTs continue to be a vibrant space for innovation, the market was flooded with projects that struggled to find traction. With oversaturation, low minting rates, and poor price performance, creators may need to rethink their strategies, focusing on building community and offering real utility to stand out,” the NFTevening Team said.

NFT Market Bloodbath: 98% of 2024 Drops Failed — *credit: NFTevening*

The data suggested a shift in investor sentiment. Where once speculative trading drove rapid price increases, buyers were now exercising greater caution, focusing on projects with demonstrable utility and strong community backing.

NFT Market Sees Renewed Activity

However, this trend of struggling projects contrasted with recent market-wide data showing a resurgence in NFT trading activity. A surge in weekly sales volume to $181 million, driven by gains in Bitcoin and other cryptocurrencies, suggested that while individual projects might struggle, overall interest in NFTs remained.

This was further supported by an increase in the average transaction value, now at $133.08, according to CryptoSlam data. October’s monthly sales figures also showed an 18% increase, indicating a potential recovery in the NFT market. This raised the question of whether the market was bifurcating, with established projects and blue-chip NFTs benefiting from renewed interest while newer projects struggled to gain traction.

The future of the NFT market remains uncertain. While innovation continues, the current landscape presents significant challenges for creators.

Success in this new environment will likely require a greater emphasis on building engaged communities, developing unique utility, and demonstrating tangible value beyond mere speculation. The 2024 bloodbath served as a stark reminder that the NFT market, like any other, is subject to the forces of supply and demand.

The current oversupply, coupled with waning demand, highlighted that a period of consolidation and recalibration may be necessary before the market can find its footing again.

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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