The digital collectibles market saw a 45% decline in Q2.
2024 quarter-over-quarter sales decline by 45% as Bitcoin market shows downward spiral.
According to CryptoSlam data, In the first quarter of 2024, NFTs had a total sales volume of $4.1 billion, maintaining the upward momentum from the fourth quarter of 2023. In Q4 2023, NFTs recorded a volume of $2.9 billion.
The downward momentum comes amid analysts predicting a negative outlook for Bitcoin (BTC), one of the key leaders in the NFT space.
Decline rate for NFTs
Despite an upward trend in Q1, NFT sales volumes showed a sharp decline in the second quarter of 2024. Digital collections recorded quarterly volume of $2.24 billion, marking the lowest quarter since Q3 2023. This represents a 45% reduction compared to the previous one. quarter
June was also a tough month for NFTs, with the average price of NFT sales down 59% compared to March. Additionally, June is on track to record the lowest number of NFT transactions since March 2021.
The month will record the lowest sales volume and number of unique sellers since October 2023. This may indicate that NFT collectors prefer to hold their assets when prices are unfavorable.
Bitcoin market collapse
The decrease in the volume of NFT trading is related to the negative attitude towards the Bitcoin market. On June 24th, analysts predict that Bitcoin could drop to $50,000 as emerging price patterns suggest a more significant decline.
Marcus Thielen, founder of 10x Research, said the 2024 U.S. election and consumer price index prices could be negatively impacted.
Related: Mark Cuban wallet spotted dropping NFTs after 2 years of inactivity.
New developments for NFTs
Despite the downward trend, NFTs have reached several levels in 2024. Solana-based NFTs hit a new record high for the period in February. On February 23, CryptoSlam showed that the amount of NFTs on Solana reached 5 billion dollars.
Meanwhile, Bitcoin-based NFTs are also gaining ground. On June 18, NFTs recorded a volume of $4.27 billion on Bitcoin, taking the third place in the all-time volume of sales for NFTs. The ban went beyond Ronin's network, which previously held the position.
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