The NFT market in 2024 experienced downturn with the lowest trading volume, marking its worst year since 2020

The NFT market in 2024 experienced a significant downturn, marking its worst year since 2020, according to DappRadar's 2024 Dapp Industry Report on Jan 14, 2025.

Both trading volumes and sales counts fell sharply, with trading volume declining by 19% to $13.7 billion and sales counts dropping 18% to under 50 million transactions.

It seems like rising token prices and market volatility played a big role in this decline. Despite a brief rise in trading volumes in Q1 2024, the momentum didn't last, and volumes dropped significantly in Q3 before a slight recovery in Q4.

Key Highlights of the Report:

Market Volatility

While Q1 trading volumes rose 4% year-over-year to $5.3 billion, momentum dwindled with volumes falling to $1.5 billion in Q3 before rebounding slightly to $2.6 billion in Q4.

Sales counts also decreased, reflecting rising NFT prices in line with higher token prices, particularly for Ether.

Historical Context

In stark contrast, NFTs had their best year in 2022, with trading volumes reaching an all-time high of $57.2 billion and sales counts hitting 121.7 million. The 2024 performance underlines the challenges the market has faced in sustaining its earlier growth.

Gaming NFTs Lead by Sales Count

Gaming-related NFTs dominated, with Gods Unchained topping the charts with $152 million in sales volume, a 27% drop from 2023, and 3.86 million sales, down 18%.

Pudgy Penguins’ Strong Performance

Despite the overall market downturn, Pudgy Penguins emerged as the top NFT collection by trading volume. It saw a 140% increase in trading volume to $786 million and a 114% rise in floor price, despite a 44% drop in sales count.

Although 2024 was a tough year for NFTs, with trading volumes falling 19% to $13.7 billion and sales counts dropping 18% to just under 50 million. This marks the worst performance for NFTs since 2020.

Interestingly, gaming-related NFTs still performed relatively well, with collections like Pudgy Penguins and Gods Unchained leading the pack. Pudgy Penguins, in particular, saw a 140% increase in trading volume thanks to its real-world applications like plush toys and sports partnerships.