CandleFocus

98% of 2024 NFT Drops Are Effectively Dead, Report Shows

Author: Content Editor
The NFT market experienced a downturn in 2024, with a study showing that most NFT drops this year failed to find lasting value or engagement. The research focused on collections launched between January and August 2024 and found that nearly 98% of these projects had little or no trading activity since September, signaling an oversaturation of the market. Only 0.2% of NFT drops in 2024 were profitable for investors, and even among those that still had trading activity, only 11.9% were profitable. The study also found that the majority of NFT drops were recorded in fewer than 10 minutes, indicating difficulty in attracting initial buyers, and 98% of projects saw fewer than 10 trades within their first week, suggesting a lack of market interest and investor confidence. Prices of 2024 drops fell by at least 50% within three days of launch, highlighting the rapid decline in buyer enthusiasm. Additionally, around 84% of these projects failed to appreciate in value, reflecting a cooling sentiment in the market. The oversaturation of the NFT market has made it difficult for new projects to gain traction, leading to a decline in minting and trading activity. The report suggests that the NFT market needs to move towards community-oriented and utility-based NFTs to stand out, and investors should exercise caution and thoroughly vet projects to avoid losses.

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