Non-fungible tokens (NFTs) are facing significant challenges in 2024. According to CryptoSlam, global NFT monthly sales have fallen below $400,000. Even some of the most sought-after NFTs, such as those from the Bored Ape Yacht Club (BAYC) collection, are now selling for much less than their original prices.
For example, BAYC #6400 sold recently for 14.55 ETH, which is about $35,169. Just three years ago, the same token was valued at 42 ETH, equivalent to $159,358 at that time. This represents a 77.92% drop in its price.
Similarly, BAYC #5115 sold for 11.24 ETH, or around $27,353. When it was originally purchased three years ago, it went for 51.15 ETH, worth $233,653 back then. That is an 88.31% loss in value.
This downward trend isn’t new for BAYC. In March, actor Kevin Hart’s BAYC NFT sold for 74% less than the price paid in 2022.
The broader NFT market has also seen a downturn, with top blockchains like Ethereum, Solana, and Bitcoin all recording lower NFT sales volumes. In August 2024, Ethereum’s monthly NFT sales volume dropped to $127 million, a steep decline from the over $4 billion recorded in January 2022.
Solana and Bitcoin have also seen sharp decreases. In August, Solana reported $78 million in NFT sales, down from $355 million in April 2022. Bitcoin recorded $60 million in NFT sales in August, compared to $871 million in December 2023, a period likely influenced by anticipation of the Bitcoin halving event.
Beyond declining interest from the community, legal issues have added pressure on the market. The U.S. Securities and Exchange Commission (SEC) recently issued a Wells notice to OpenSea, one of the largest NFT marketplaces, arguing that NFTs traded on the platform should be classified as securities.
Dapper Labs, for instance, recently settled a lawsuit over its NBA Top Shot NFTs, agreeing to pay $4 million. Meanwhile, other companies have preemptively shut down their NFT initiatives. Starbucks ended its NFT rewards beta program, Odyssey, in March 2024, and GameStop closed its NFT marketplace in January 2024 after just two years of operation.
