The non-fungible token (NFT) market closed in 2024 with a modest rebound, recording $8.83 billion in total sales, a slight 1.1% increase from 2023’s $8.7 billion, according to CryptoSlam.

While the figure reflects a positive trend, it pales compared to the NFT boom of previous years, with 2021 and 2022 seeing significantly higher volumes at $15.7 billion and $23.7 billion, respectively.

Ethereum and Bitcoin led NFT sales in 2024, each registering $3.1 billion in volume. Solana followed in third place with $1.4 billion. Ethereum maintained its dominance as the all-time leader in NFT sales, boasting $44.9 billion, while Solana and Bitcoin trailed with $6.1 billion and $4.9 billion, respectively. Despite Ethereum’s continued lead, the rise of Bitcoin-based NFTs has added an interesting dynamic to the competitive landscape.

Market Struggles and a Late-Year Recovery

The NFT market faced considerable headwinds throughout the year. After a prolonged seven-month decline, sales volumes hit their lowest point in September at $303 million. However, the fourth quarter brought an unexpected recovery. October sales increased by 18% from the prior month, reaching $353 million. This momentum carried into November, which saw a six-month high of $562 million in sales. The year ended on a strong note in December, with $877 million in sales, marking the fifth-highest monthly performance in 2024.

NFT sales chart (yearly). Source: CryptoSlam

December’s surge was largely driven by Ethereum-based collections, which recorded $482 million in sales. Bitcoin NFTs also contributed $172 million, while Solana-based collections accounted for $100 million. Popular collections like Pudgy Penguins dominated the market, generating $115 million in December alone. Other well-known collections, including Azuki, CryptoPunks, Doodles, and Bored Ape Yacht Club, collectively added $141 million to the monthly total.

Industry Optimism and Evolving Trends

While the market hasn’t returned to its highs, interest and innovation remain strong. According to Animoca Brands Chairman Yat Siu, the sector may be “in for a very, very long run,” with NFT trading volumes that could eventually top billions every month once wider crypto markets mature.

Top 10 NFT collections in December 2024. Source: CryptoSlam

Several emerging trends are manufacturing a new formation in the NFT market. Integration with traditional industries such as fashion and gaming further increases the scope of NFTs. Luxury brands and digital startups offer “phygital” products, combining physical and digital ownership. Gaming sees NFTs being increasingly integrated by big companies into their ecosystems despite mixed consumer reactions.

Challenges and Legal Disputes

The NFT sector is not without its challenges. Legal disputes have become more common as organizations navigate the complexities of blockchain-based ventures. For instance, sports entities like the NFL Players Association faced issues with NFT projects, highlighting the risks associated with this evolving market.

While 2024 marked a modest recovery for NFTs, the market is far from its previous highs. However, the integration of NFTs into diverse sectors and the gradual return of investor confidence signal a resilient industry poised for long-term growth. As new use cases emerge, NFTs remain a dynamic and evolving component of the Web3 ecosystem.