NFT Market Woes Continues: Brutal August Continues 2024 Downtrend
Brutal August Follows in the 2024 NFT Market Slide Pattern
The NFT market have experienced a downturn since the beginning of the second quarter of the year 2024. While the biggest decline in total sales price was experienced in the month of May, a steep declined was experienced across all statistics metrics in August.
The statistics metrics include the total sales amount, number of unique buyers and sellers, and the total transactions for the month of August.
August’s sales of about $374.38 million, represents a decline of about 41.36% from July. The buyers decreased by 29.04%, while the sellers decreased by 17.02%. The number of transactions was about 50% down at 7.37 million transactions from 10.72 million in July.
Why the Decline in NFT Sales?
The decline in NFT transaction volume has coincided with the decline in the price of Bitcoin from its All Time High ATH in March.
With a 45% decline in the second quarter Q2 from the first quarter Q1, and a 60% decrease in Q3 from Q2, artists and collectors are holding unto their assets while prices are unfavorable.
August Winners in the NFT Market Ranking
Top Collections for the Month of August
Mythos’ Dmarket lead the 30 days ranking with a sale of $20.29 million, up 17.45% from July. It is followed closely behind by Ethereum’s cryptopunk with $17.71 million sales volume yielding a 139.41% increase from July.
Guild of Guardians Immutable Heroes is ranked third to make up the top three with a sales volume of $14.83 million, up 110%.
Sorare with $12.57 in sales volume and Bored Ape Yacht Club with $12.13 million in sales make up the top five.
Top NFT Blockchains for August
On the blockchain scale, Ethereum leads the chart with about $129 million, despite a 37.53% decrease from the month of July. While Solana with a volume of $78.94 million is behind in second, with a decline of 35.54%.
Other top five players include Bitcoin in third, down 50.58% with a trading volume of $57.65, Polygon, down 52.24% in fourth with a volume of $36. 44 millon and Mythos, up 14.31% with a trading volume of $20.5 million
August’s NFT Weekly Sales
August was an underperforming month on the weekly chart, with just the third week form 19th August to 25th August producing an increase in sales. It opened with a weekly sale of $85.5 million and total transaction of 271,848 on the first week.
The second with closed with total sales of $76.8 million with 143,453 transactions. A steep decline from the opening week.
The third week however produced a 24.33% increase in sales on the third week with a total of $94.17 million despite a slightly decreased transaction number of 141,528.
The month finished with a sharp decrease at $80.26 million in sales with 126,048 transactions. Failing to capitalize on the increase in sales and number of buyers and sellers the previous week.
Q4 Expectations: Will the NFT Downtrend Continue?
Sales in NFT increased on a yearly basis between 2017 to 2022, from an initial $143,819 in 2017 to $23.78 billion in 2022. Indicating a percentage increase of over 10 million percent increase in sales from 2017. The total transaction also increased from 1,212 to 56.74 million in 2022.
The profit margin however peaked in 2021 with over $1.6 billion in trade profit against a drop to $465 million in 2022 despite an increase level of sales amount and transaction counts in 2022.
While 2023 also had an increased number of transactions, it experienced a steep decline in profit margin and sales compared to 2022. With 2023 experiencing a yearly loss of -$247.71 million.
2024 so far seem poised to scale up in sales, trading profit unique buyers and sellers and total transactions as against 2023. It is still a long way off the 2021 peak in sales volume, and 2022 peak in trading profit
Expectations are high that Bitcoin and the cryptocurrency market generally will close the year strongly. This sentiment could translate into an increased activity for non-fungible tokens. But with the unpredictable nature of the decentralized world, a combination of verifiable, speculations and sentiments will have a role in directing its movements and statistics as the year progresses.
