From beincrypto by Mohammad Shahid

NFTs recorded a total sales volume of $8.8 billion in 2024, marking a slight increase of $100 million from the previous year. 

This 1.1% year-on-year growth reflects both the potential and challenges within the digital collectibles market.

NFT Sales Show Signs of Recovery Amidst a Challenging Year

Ethereum and Bitcoin emerged as the leading blockchains for NFT sales, each generating $3.1 billion throughout the year. Solana ranked third, recording $1.4 billion in sales volume. 

Cumulatively, Ethereum maintains its dominance with $44.9 billion in all-time NFT sales. Solana follows with $6.1 billion, while Bitcoin-based NFTs have amassed $4.9 billion in total sales.

The market faced significant hurdles in 2024, including a seven-month downturn. September saw the lowest sales volumes since 2021, reflecting reduced speculative interest and an oversaturated market. 

However, a rebound began in October, with NFT sales rising to $353 million, an 18% jump from the previous month.

Momentum continued in November, with $562 million in sales, marking a six-month high. December closed the year on a strong note with $877 million in sales, its fifth-best month of 2024. 

Ethereum collections contributed significantly, generating $482 million in December alone.

Market Developments and Setbacks

Prominent collections like Pudgy Penguins led the market, achieving a sales volume of $115 million. Platforms such as Magic Eden and Pudgy Penguins introduced their own tokens, signaling innovation in the space. 

Additionally, Mythical Games and FIFA announced FIFA Rivals, a mobile football game incorporating NFTs. The game is potentially scheduled for release in the summer of 2025.

Despite these advancements, challenges persisted. In November, Kraken shut down its NFT marketplace to focus on other projects. Users have until February 27, 2025, to withdraw their assets.

Oversaturation also plagued the market. Approximately 98% of NFT collections saw minimal, or no trading activity, and only 0.2% of NFT drops were profitable. Most collections lost over 50% of their value within days, reflecting waning speculative demand.

While the NFT market showed signs of resilience with late-year gains, the broader challenges highlight a shift away from speculative trading toward more utility-driven applications. 

As platforms innovate and adapt, 2025 will reveal whether NFTs can sustain growth amid changing investor sentiment.