Non-fungible token (NFT) trading volumes plummeted by more than 60% in February, continuing a downward trend that began in early 2024.
According to DappRadar analyst Sara Gherghelas, NFT trading volumes reached $1.36 billion in December but dropped 26% in January before plunging another 50% in February.
“While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,” she noted in a March 6 industry report.
NFT Slump Mirrors Crypto Market Decline
The downturn is closely linked to broader cryptocurrency price movements.
In December, the total crypto market capitalization soared to an all-time high of $3.71 trillion, with Bitcoin briefly surpassing $109,000 in January before declining.
However, by February, much of these gains had been erased due to macroeconomic uncertainty surrounding U.S. President Donald Trump’s proposed tariffs on major trading partners.
Alongside the NFT slump, activity in decentralized applications (dApps) also weakened, with daily unique active wallets decreasing by 8% to approximately 24 million.
However, NFT-related activity bucked this trend, rising by 6% in February. Around 3.5 million users interacted with NFT platforms, driven in part by growing interest in artificial intelligence-powered assets.
“The increasing integration of artificial intelligence into NFT projects signals a shift toward more dynamic, interactive digital assets with enhanced utility,” Gherghelas said.
“The evolving landscape suggests that while speculative trading may fluctuate, NFTs with strong utility, engagement, and real-world applications will drive long-term adoption in Web3.”
Despite the broader market slowdown, profile picture (PFP) NFTs remained the most traded category, generating $243 million across 76,385 sales.
Gaming NFTs followed with $41 million in trading volume, while sports NFTs led in transaction count, recording 659,097 sales worth $7.7 million.
NFT Market Rebounds in 2024 with $8.83B in Sales
The NFT market closed 2024 on a positive note with annual sales surpassing $8.83 billion, a 1.1% increase from 2023’s $8.7 billion, according to CryptoSlam data.
Ethereum and Bitcoin led the market, each generating $3.1 billion in sales, followed by Solana with $1.4 billion.
In total NFT sales, Ethereum remains dominant with $44.9 billion in all-time sales, trailed by Solana at $6.1 billion and Bitcoin at $4.9 billion.
Despite the slight recovery, 2024’s sales volumes were significantly lower than the market’s peak years.
NFT sales hit $15.7 billion in 2021 and soared to $23.7 billion in 2022, making 2024’s total a 43.9% and 62.8% decline from those peak periods.
The market’s resurgence began after a seven-month slump, with sales reaching their lowest point since 2021 in September.
However, a rebound emerged in the final quarter. October sales rose by 18% to $353 million, followed by a six-month high of $562 million in November.
December concluded the year strongly, achieving $877 million in sales—the fifth-highest monthly total of 2024.
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