NFT Market Witnesses Sharp 21% Weekly Plunge in 2024: Ethereum, Bitcoin, Solana, Polygon, and Avalanche Face Double-Digit Losses

Cryptocurrency market observers were met with a notable downturn in the non-fungible token (NFT) sector during the week of Jan. 20 to Jan. 27, 2024, with a significant 21.25% drop in sales volume compared to the previous week. This decline affected major blockchains, including Ethereum and Bitcoin, which experienced substantial double-digit losses ranging from 28.78% to 12.62%, respectively.

NFT Sales Decline Hits a Record Low

At the commencement of the new year, NFT sales saw a slight dip of 1.31%, followed by a marginal rise of 0.05% in the subsequent week. However, the most recent week marked a substantial 5.05% decrease in digital collectable sales, reaching a total of $228,327,660, making it the steepest decline in 2024.

source: cryptoslam.io

Ethereum Reclaims Top Position Amidst Shifting Trends

The recent downward trend contradicts the surge in NFT sales witnessed at the end of 2023, driven predominantly by Bitcoin blockchain-based transactions. Ethereum, having relinquished its lead, reclaimed the top position in NFT sales volume in the past seven days, despite facing a 28.78% decrease, amounting to $74.97 million. Bitcoin followed with a 12.62% week-over-week drop, recording $55.92 million in sales.

Double-Digit Losses Across Top Five Blockchains

Solana, securing the third rank, saw an 11.85% decrease, reporting $53.69 million in sales. Polygon and Avalanche, claiming the fourth and fifth positions, faced more significant setbacks with drops of 36.40% and 41.25%, respectively. All five leading blockchains in weekly sales experienced double-digit losses.

Standout Performances and Top Sales

In the realm of unique digital collectable collections, Cryptopunks emerged as the highest-selling series, accumulating $13.67 million in sales, marking a notable 32.23% increase from the previous week. Solana’s Froganas reported $7.04 million in sales, showcasing a remarkable surge of 420.77%.

Highest-Priced Digital Collectibles

The highest-priced digital collectable of the week was Cryptopunk #6,940, fetching $507,618. Noteworthy sales include BNB’s Lockdealnft #18,858 at $147,157, an Axie Infinity NFT at $143,559, an Uncategorized Ordinal at $88,386, and Cardano’s Meld Diamond Hand #2,813 at $56,186. Sales of Cryptopunk #6,940 and Axie Infinity NFT significantly contributed to the sales boost on their respective chains.

Industry Reflection and Future Outlook

NFT sales faced challenges throughout 2022 and a significant part of 2023. Bitcoin’s entry initially boosted sales, but recent weeks have seen a decline, with a 28.15% drop reported the week before. While Solana and Polygon displayed growth in the latter part of 2023, they encountered modest falls in recent digital collectable sales. The industry awaits signals of a potential resurgence or the continuation of the current downward trend.

Disclaimer: The article provides information for news purposes only and does not constitute financial advice. Readers are advised to conduct their research before making any investment decisions.

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