- NFT sales dropped by almost $2 billion in Q2 2024 compared to Q1
- The sales plummeted from$4.1 billion to $2.3 billion which is almost a 50% decline within three months
- The decline is attributed to dropping crypto prices
The turmoil experienced in the crypto market scene in the last three months spilled over to the NFT market causing NFT sales to drop by almost 50% from $4.1 billion to $2.3 billion. According to data aggregator platform CryptoSlam, collectors spent an average of $142 per sale in Q1 compared to roughly $104 in Q2. Some in the crypto community have attributed the decline to a drop in crypto prices in Q2, a phenomenon that’s still plaguing the crypto space as we enter the third quarter of the year.
Wash Trades Increase
CryptoSlam also registered that there were more NFT wash trades in Q1 compared to Q2, with the difference being over $600 million. The decline has been registered across the NFT market including on collections powered by the Bitcoin blockchain.
Apart from a drop in crypto prices, some analysts have attributed the decrease in NFT sales in Q2 2024 to a growing popularity of meme coins that have shifted the crypto community’s focus from virtual collectibles.
According to CryptoSlam, the leading NFT collections in the past 30 days are powered by Bitcoin, Mythos and Ethereum.
More Funds Lost in Q2 than Q1 2024
The decline of NFT sales in Q2 aligned with another report noting that crypto hackers and scammers stole more funds in Q2 than they did in Q1. It also comes when a remote Japanese village is supporting its elderly population with NFTs.
With crypto prices yet to return to Q1 levels, it’s to be seen whether the prices will recover or the community will collect more artworks in Q3 to record more sales.
