Non-fungible tokens (NFTs) are dealing with vital challenges in 2024. In response to CryptoSlam, world NFT month-to-month gross sales have fallen under $400,000. Even among the most sought-after NFTs, reminiscent of these from the Bored Ape Yacht Membership (BAYC) assortment, are actually promoting for a lot lower than their authentic costs.
For instance, BAYC #6400 bought lately for 14.55 ETH, which is about $35,169. Simply three years in the past, the identical token was valued at 42 ETH, equal to $159,358 at the moment. This represents a 77.92% drop in its worth.
Equally, BAYC #5115 bought for 11.24 ETH, or round $27,353. When it was initially bought three years in the past, it went for 51.15 ETH, value $233,653 again then. That’s an 88.31% loss in worth.
This downward pattern isn’t new for BAYC. In March, actor Kevin Hart’s BAYC NFT bought for 74% lower than the value paid in 2022.
The broader NFT market has additionally seen a downturn, with high blockchains like Ethereum, Solana, and Bitcoin all recording decrease NFT gross sales volumes. In August 2024, Ethereum’s month-to-month NFT gross sales quantity dropped to $127 million, a steep decline from the over $4 billion recorded in January 2022.
Solana and Bitcoin have additionally seen sharp decreases. In August, Solana reported $78 million in NFT gross sales, down from $355 million in April 2022. Bitcoin recorded $60 million in NFT gross sales in August, in comparison with $871 million in December 2023, a interval probably influenced by anticipation of the Bitcoin halving occasion.
Past declining curiosity from the group, authorized points have added stress available on the market. The U.S. Securities and Change Fee (SEC) lately issued a Wells discover to OpenSea, one of many largest NFT marketplaces, arguing that NFTs traded on the platform ought to be categorised as securities.
Dapper Labs, for example, lately settled a lawsuit over its NBA Prime Shot NFTs, agreeing to pay $4 million. In the meantime, different corporations have preemptively shut down their NFT initiatives. Starbucks ended its NFT rewards beta program, Odyssey, in March 2024, and GameStop closed its NFT market in January 2024 after simply two years of operation.
