NFTs see massive drop in trading volume this quarter

The trading volume of non-fungible tokens (NFTs) have dropped by 45% this quarter as the crypto market remains in consolidation.

According to CryptoSlam, NFT sales totaled $4.1 billion in the first quarter of 2024. This was an increase from the $2.9 billion in sales seen in the fourth quarter of 2023. Despite this initial momentum, activity sharply declined in the second quarter.

A large portion of the transactions, known as wash trading, indicates manipulative practices where trades are made to falsely boost prices and volumes. Over $35 billion in wash trading, making up 53.71% of all transactions, highlights a major problem in the NFT space.

One notable event in the NFT market this quarter involved billionaire Mark Cuban. After nearly two years of inactivity, Cuban’s crypto wallet began selling various NFTs on June 23.

His wallet, linked to the Ethereum Name Service (ENS) domain “markcuban.eth,” sold high-profile NFTs like EulerBeats Genesis, DeepBlack NFTs, Pudgy Penguins, and Wrapped MoonCats.

Cuban’s last sale was on January 13, 2022, when he sold a Roc Aero Pitch Deck NFT for $33.73. In just the past two days, he sold 14 NFTs worth around $38,533.

The highest-priced NFT sold was Pudgy Penguin #6239, which fetched 9.06 Wrapped Ether (WETH), or $30,578. Other NFTs sold by Cuban ranged from $22 to $1,800.

In addition to these sales, Cuban plans to list two more high-value NFTs. His Hashtag NFT #MFFL is listed for 15 Ethereum, worth over $50,000, and a BibleNFT piece called Deuteronomy 25:4 is listed for 5 ETH, about $16,000. If these NFTs sell, Cuban’s wallet will have sold over $100,000 in NFTs within two days.

However, the market’s general sharp decline in 2023 and the continued drop in 2024 indicate the market is cooling off.

Historical data shows:

• 2023: $8.7 billion in sales, 4.2 million unique sellers, and 5 million unique buyers.
• 2022: $23.8 billion in sales, 3.8 million unique sellers, and 5.5 million unique buyers.
• 2021: $15.7 billion in sales, 3.7 million unique sellers, and 5 million unique buyers.
• 2020: $22.3 million in sales, 25,052 unique sellers, and 41,616 unique buyers.

The average sale price has also dropped significantly, from $460.85 in 2021 to $142.34 in 2024.

Jai Hamid