Monthly NFT sales fall below $400M, marking yearly low
August 2024 marked a significant downturn in the NFT market, with monthly sales plummeting to $374 million, the lowest recorded this year. This sharp decline underscores the ongoing struggles within the digital collectibles space, as NFT sales have failed to regain the momentum they enjoyed earlier in the year.
According to data from NFT tracker CryptoSlam, August’s $374 million volume is a stark contrast to the year’s peak in March, when monthly sales hit $1.6 billion. This represents a dramatic 76% drop from the highest point, reflecting a broader downward trend that has persisted since the second quarter of 2024.
The year started strong for NFTs, with a total sales volume of $4.1 billion in the first quarter. However, the momentum slowed considerably, with a 45% decline in the second quarter, bringing the total volume down to $2.24 billion. The decline continued through the summer, with sales dropping to $598 million in May and further declining in the subsequent months.
Despite these challenges, July did see a notable surge in NFT transactions, with a remarkable 87% increase, totaling 10.7 million transactions compared to 5.7 million in June. However, this uptick in transaction volume did not translate into higher sales revenue, as the total volume in July was $427 million.
In August, the number of transactions decreased by 31% to 7.3 million, but there was a silver lining: the average value of an NFT sale rose by 27%, from $39.93 in July to $50.74. This increase continued into the first days of September, with the average sale value climbing to $86.04 per transaction.
The market's decline in overall sales volume, despite higher average transaction values, suggests a shift in buyer behavior, possibly indicating that while fewer NFTs are being sold, those that are changing hands are of higher value. The NFT market continues to face significant challenges, and the coming months will be crucial in determining whether it can recover or if this downturn will persist.
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