NFTs Are In Turmoil - Is The NFT Market Revival In 2024 Still A Reality? Here’s An Answer

NFTs Are In Turmoil – Is The NFT Market Revival In 2024 Still A Reality? Here’s An Answer

Updated: 08 August 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

The global non-fungible token market, which once made many crypto investors millionaires, is now experiencing a brutal downturn, leaving another set of crypto investors bankrupt and others still holding worthless digital items. But, there have been rumours that NFTs will make a big comeback in 2024. In this article, we shall discuss whether the NFT market revival in 2024 is still a reality.

Crypto And NFT Markets Are In Turmoil

Data compiled by CryptoSlam.io, an on-chain crypto market data aggregator and non-fungible token explorer, shows that the crypto and non-fungible token markets are in turmoil. The ball started rolling last week when the United States government announced an unemployment rate climb to 4.3%, adding only 114k jobs, the slowest growth since 2022.

Things unravelled further when Japan’s central bank raised interest rates, triggering a global economic ripple effect that hit our stock and crypto markets hard. Yesterday, $1.2B vanished from the crypto market, while $1.4 trillion was wiped from the US stock market. In the past 24 hours, the global NFT market has recorded a trading sales volume of $13 million, down 3.93% from the past day.

During this period, Ethereum leads the NFT market with a $4.1 million trading sales volume. Solana and Mythos Chain blockchain follow Ethereum closely, with a trading sales volume of $3.2 million and $1.8 million. Solana and Mythos Chain-backed NFTs have surged 14% and 16,062%, respectively. The fallen giant Bitcoin takes the fourth position in daily sales volume with a trading sales volume of 1.8 million. Bitcoin NFT sales are down 40% from the past day.

Is The NFT Market Revival In 2024 Still A Reality?

To find out whether the global non-fungible token market will retest another bull run before the end of this year, we will briefly return to the peak of NFTs in 2021 to explore and understand the reasons for the market collapse in 2022. Then, we shall look at its gradual recovery in 2023 and finally give a forecast for the current year.

NFTs rose to fame in 2021 and experienced an unprecedented surge, with trading volumes reaching $17.6 billion. At that time, many crypto traders thought that the interest in non-fungible tokens was just confined to a relatively closed group of traders who had little connection to the art world. A few weeks later, auction houses began to offer more NFT sales and create infrastructure and consistent offerings of this kind.

Unfortunately, the global NFT market fell apart in mid-2022, leaving many non-fungible token collections shielding more than 50% of the floor price value. The once bustling NFT market took a nosedive in market capitalizations and trading sales volume, sparking widespread concerns and discussions about its future. The NFT downturn left many crypto traders retracting their stance on NFTs as viable investments.

Despite starting low, the NFT market showcased potential signs of revival in the last quarter of 2023, attributed to a bullish crypto market and the SEC’s approval of Bitcoin ETFs. The Bitcoin Ordinals resurgence and the growth of the Solana NFT ecosystem contributed to the renewed interest in NFTs, with weekly trading sales volumes surpassing $500 million in December 2023.

Despite a prolonged decline and negative reputation, the global NFT market is predicted to make another comeback. The NFT market is expected to record around $2.4 billion in revenue in 2024. In an August 7 blog post, CryptoKaleo, a high-profile crypto & NFT analyst with over 643K followers on X, shared that he still believes NFTs will have another significant run this cycle. CryptoKaleo noted that NFTs need a small catalyst, and eventually, the rest will take care of themselves.

I’m one of the crazy people that still believe NFTs will have another major run this cycle.

Think back to late summer / early fall of 2020 at the beginning of the last bull market.

NFTs were irrelevant. Punks hadn’t done anything significant yet. Finding the next DeFi play was…

— K A L E O (@CryptoKaleo) August 7, 2024