NFTs are likely to face major challenges by 2024. CryptoSlam reports that NFTs will face significant challenges in 2024. global NFT monthly sales Prices have dropped below $400,000 Some of the highest-priced NFTs from collections such as the Bored Ape Yacht Club collection (BAYC), are selling at much lower prices than the original price.
As an example: BAYC #6400 Recently, the token was sold for 14,55 ETH which is approximately $35,169. Only three years earlier, this token sold for 42 ETH. That was $159 358. The price of the token has fallen by 77.92%.
Similarly, BAYC #5115 It was sold at 11.24 ETH or approximately $27,353. It was worth $133,653 when it was purchased in 2013, but it cost 51.15 Ethereum at the time. This is a loss of 88.31% in value.
It’s not the first time BAYC has seen a downward trend. The actor’s salary dropped by a third in March. Kevin Hart’s BAYC NFT The price of the product in 2020 is 74% cheaper than that paid today.
In the broader NFT industry, sales of NFTs have also decreased. Top blockchains such as Ethereum, Solana and Bitcoin are all reporting lower NFT volumes. Ethereum’s NFT monthly sales volume fell to $127m in August 2024. This is a sharp decline from over $4bn recorded in January 2020.
Solana Bitcoin has also experienced sharp declines. Solana recorded $78 million of NFTs in August. This is down from $355 millions in April 2022. Bitcoin reported $60 million in NFTs sales in August, which is compared with $871 million by December 2023. This period was likely affected due to the anticipation of Bitcoin’s halving.
Legal issues are adding pressure to the market. U.S. Securities and Exchange Commission recently issued a Wells notice to OpenSeaOne of the biggest NFT platforms, has argued that NFTs trading on its platform should be treated as securities.
Dapper Labs recently agreed to settle a lawsuit involving its NBA Top Shots and pay $4 Million. Some companies have already shut down NFT programs. Starbucks ended its NFT rewards beta programOdyssey will be released in March 2024. GameStop closed its NFT marketplace After just two years, the project will be completed in January 2024.
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Source: blog.cryptoflies.com