Recently, the trading volume of NFTs has significantly decreased alongside the downturn in the crypto market. The NFT transaction volume, which reached 1.36 billion dollars in December, fell by 26% in January and 50% in February. This decline occurred in parallel with the general fluctuations in the cryptocurrency market.
The Impact of Uncertainty in the Crypto Market
At the end of December, the cryptocurrency market reached an all-time high of 3.71 trillion dollars, leading to price increases in many digital assets. However, in January and February, uncertainties concerning tariffs applied to international trade partners wiped out gains in most of the market and caused contractions in the NFT sector as well. These adverse effects led to a substantial decline in NFT transaction volumes.
DappRadar analyst Sara Gherghelas noted that NFTs showed signs of recovery in recent months, but their momentum has slowed since the beginning of the year. She emphasized that the integration of artificial intelligence into NFT projects has made them more interactive. These developments allow NFT projects to become more dynamic and support strong use cases for long-term adoption.
Transformation in the NFT Market
According to DappRadar’s report, significant differences were observed among profile, gaming, and sports-themed digital assets in the NFT market. Profile NFTs stood out with a transaction volume of 243 million dollars and 76,385 sales, while gaming NFTs followed in second place with 41 million dollars in volume and 421,853 assets. Sports NFTs recorded 7.7 million dollars in transaction volume with 659,097 trades.
The year 2024 is shaping up to be a challenging one for the NFT market. The year 2022 was notable for record transaction volumes and sales figures. Fluctuations in the cryptocurrency market do not hinder the expansion of use cases for NFT projects. However, market movements and price volatility are being closely monitored by traders and market observers.
