June 5, 2024
By Anjali Kochhar
In an unexpected turn of events, the non-fungible token (NFT) market experienced a major drop in May, reaching its lowest level since October of the previous year. According to latest data, global NFT sales were US$604 million, marking the first time this year that monthly sales fell below US$1 billion.
Ethereum, renowned as the primary blockchain for NFT transactions, experienced a notable decline with sales plummeting to US$164 million, marking its lowest figure since September. The platform also saw a considerable drop in the number of unique buyers, hitting a low of 56,914, a figure not seen since June 2021.
Similarly, the Bitcoin network reported a downturn, recording US$160 million in sales for the month, its lowest since October. Both buyers and sellers on the Bitcoin network decreased, reaching the lowest count of the year.
Amidst this downward trend, Solana emerged as a notable exception, showcasing resilience in terms of activity. Despite a dip in sales to US$93 million, the blockchain set new records for monthly unique buyers and sellers, boasting 346,229 and 594,555 addresses, respectively. However, the platform witnessed a decline in the average NFT price, with an average monthly sales value of US$37.8, the lowest recorded this year.
The causes for the precipitous drop in NFT sales across major blockchains are unclear. Some believe that market saturation and changeable investor sentiment may be contributing reasons. As the NFT market evolves, analysts are keeping a close eye on whether this decline is a one-time blip or the beginning of a more substantial shift in the industry landscape.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
