NFT market falls fifth-straight quarter, trading volumes plummet
Trading in the digital assets, best known for their collectible cartoon avatars and viral memes, declined to US$823 million in the second quarter, down from US$4 billion during the prior-year period, according to data compiled by DappRadar.
A 19 per cent decrease in total trading volume made 2024 the worst year ever for NFT traders, but this year's data suggest the downturn is far from over.
The second quarter marks the weakest performance for the space since the NFT market peaked in 2022, when annual trading volume reached more than US$50 billion. At the time, digital collectibles were sometimes sold for six-figure sums, driven by big-name celebrity endorsements from Tom Brady and Justin Bieber, before prices collapsed.
NFTs serve as blockchain certificates that authenticate ownership of a particular asset. Although the sector saw a slight rise after the election of US President Donald Trump, it has not rebounded as strongly as Bitcoin and other major tokens.
The Bitwise Blue-Chip NFT Collections Index, which monitors the performance of leading, high-profile projects in the NFT arts and collectibles space is down 52 per cent since the presidential inauguration in January.
Trump has offered four different collections of NFTs that feature images, ranging from the president in a superhero costume to one where he is holding figurative Bitcoin. Each collection sold out in a matter of hours. Trump also held a dinner with buyers of his NFTs last year. BLOOMBERG
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