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07/03/25
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NFT Trading Volumes Crash 60% in February 2024 Amid Crypto Market Decline
In February 2024, the trading volumes for non-fungible tokens (NFTs) plummeted by over 60% compared to December 2023, amid a broader downturn in the cryptocurrency market. Despite some positive signals in late 2023, NFT trading peaked at $1.36 billion in December, only to decline sharply by 26% in January and then an additional 50% in February. Analysts have linked this decline to the falling prices of cryptocurrencies, which tend to influence NFT valuations significantly.
During December, the cryptocurrency market capitalization reached a historic high of $3.71 trillion, with many digital currencies achieving substantial gains. Bitcoin notably surpassed the $109,000 level on January 20, briefly eclipsing its previous all-time high. However, the market struggled throughout February as concerns over macroeconomic factors, including tariffs from the U.S., began to weigh on trader sentiment.
The number of active decentralized applications also saw a reduction, with the daily unique active wallets dipping by 8% to approximately 24 million. Nonetheless, February did reveal an uptick in NFT activity, with user interactions on NFT platforms increasing by 6%, indicating a slight resurgence with 3.5 million users engaging with these assets. This renewed interest appears to be partly driven by innovations in artificial intelligence, which are beginning to enhance NFT functionality and engagement.
Profile picture NFTs maintained the highest popularity, generating $243 million across approximately 76,385 transactions. Gaming-related NFTs followed, gathering $41 million in trading volume from 421,853 assets. Sports NFTs also contributed significantly, resulting in 659,097 transactions totaling $7.7 million. Moreover, the NFT market faced challenges in 2023, recording only $13.7 billion in trading volume — its lowest since 2020 — reflecting rising volatility and fluctuating token prices. In comparison, the peak year of 2022 saw an influx of interest, with NFT trading volumes reaching $57.2 billion.
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