A thorough examination of the NFT market in 2024 reveals a depressing picture: only 0.2% of NFT declines have produced returns for investors, and an astounding 98% of drops are deemed “dead.” The difficulties that the Non-Fungible Token industry is currently facing are clarified in this study.
Examining the 2024 NFT Drops in More Detail
The performance of 29,079 NFT drops launched between January and August 2024 is examined in the “State of 2024 NFT Drops” study, which was released by NFTEvening in partnership with Storible. The research identifies the major trends that will shape the market this year using data from platforms such as OpenSea and Dune Analytics.
The main conclusions point to a poor performance: 98% of NFT drops see a price loss of at least 50% in three days, and most drops record less than 10 mints or trades. The extreme difficulties faced by investors and creators alike are demonstrated by the fact that the all-time high price (ATH) for 84% of these drops never surpasses the mint price.
Oversupply and Falling Demand
An average of 3,635 new NFT collections were released per month between January and August of 2024. This figure highlights a crucial problem—market oversaturation—even though it also indicates a booming creative production. There have been numerous project failures as a result of the supply of NFT collections greatly exceeding the demand.
The paper cautions that producers must modify their tactics to prosper in a market where novelty no longer ensures success, as the majority of NFT drops fail to maintain attention after their introduction.
Profitability: An Uncommon Feature
Just 0.2% of the thousands of collections examined produced rewards for investors. Moreover, just 11.9% of NFTs that are still regularly traded are considered profitable. These numbers demonstrate the growing demand for buyers to conduct careful due diligence and make cautious investments.
To successfully navigate this difficult terrain, investors are urged to put quality over quantity and concentrate on projects with strong community support and distinct value propositions.
There Are Hopes in Record Sales
There have been some exceptional sales in the NFT market in 2024, despite the depressing numbers. Notably, CryptoPunk #1563 achieved a noteworthy milestone for the industry in October by fetching 24,000 ETH, or roughly $56.3 million. In September, CryptoPunk #6915 sold for 620 Ethereum ($1.48 million).
Even though they are uncommon, these record-breaking deals show how high-value NFTs continue to appeal to a certain market, occasionally causing spikes in activity.
The NFT Market’s Future Path
The “State of 2024 NFT Drops” report’s conclusions show that the industry is at a turning point. Although there is still a lot of creative energy, there are major obstacles due to oversupply and declining demand. Creators and investors need to concentrate on quality, innovation, and sustainable growth plans if the NFT market is to pick up steam again.
Profitability will probably become even more elusive as the market develops, requiring investors to be more selective and to have a deeper comprehension of market dynamics in order to spot possible winners.
