NFT Market Struggles: Sales Plunge as Major Platforms Shut Down

Sales volume across the top 10 blockchains dropped by 12.4%, with only Immutable and Panini showing growth. The number of unique buyers also fell to its lowest since October 2023, reflecting reduced interest amid global economic challenges.

Ethereum-based NFTs were hit hardest, with sales plummeting 59.3%. Most top collections, including Bored Ape Yacht Club and Pudgy Penguins, recorded significant losses, while only CryptoPunks saw some growth. In contrast, Panini recorded a surge in activity, with sales jumping 259.2% due to its strong physical collectibles background.

Despite the downturn, some brands continue to innovate. Azuki partnered with artist Michael Lau for physical-backed NFTs, and The Sandbox collaborated with Jurassic World to introduce licensed dinosaurs to its metaverse.

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However, the struggling market has forced some platforms to shut down. Bybit is closing its NFT Marketplace, and X2Y2, which saw a 90% drop in activity since the 2021 peak, is also winding down. Kraken ended its NFT operations earlier this year.

NFT-related tokens have suffered too, with Magic Eden losing 94% of its value since launch and Pudgy Penguins (PENGU) dropping nearly 30%. Ethereum’s transaction fee income has declined by 95% since 2021, with its price falling 58.8% from its all-time high, marking its worst quarter since 2018.

Experts suggest that while the NFT market is undergoing a significant contraction, it may also be entering a phase of consolidation. As speculative hype fades, the focus could shift towards more sustainable and utility-driven projects, potentially laying the groundwork for a more resilient NFT ecosystem in the future.

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