NFT track mid-year report: With volatility, who is the “big winner” behind it?

Original title: "NFT track mid-year report: Volatility, who is the "big winner" behind it?"

Original author: HAMSTER, ChainFeeds

 

In the first half of 2024, the NFT market experienced dramatic fluctuations.

 

TL,DR:

 

· Total transaction volume data: Although the transaction volume reached US$1.28 billion in January 2024, a year-on-year increase of 35.3% from January 2023. But the market subsequently experienced ups and downs, especially in May, when the transaction volume plummeted to US$795 million, a drop of 42% from April.

 

· Multichain transaction volume: Ethereum continues to dominate the NFT market, but its market share fluctuated in the first half of the year, falling from 66.67% in January to 45% in April, and then recovering to 58.22% and 62.2% in May and June. Driven by the Ordinals protocol, Bitcoin's share of the NFT market has grown significantly, from 9.4% in January to 33.47% in April, but fell back to 12.37% and 11.76% in May and June. Solana's market share remained relatively stable, while Polygon's market share has fluctuated significantly.

 

· Major NFT trading platforms: Blur maintains its leading position, accounting for 46.38% of the market share. Magic Eden expanded its market share to 11.74% through expanded multi-chain support and airdrop programs, while OpenSea's market share fell to 15.96%. In addition, emerging platforms such as OKX NFT and Tensor have maintained and expanded their respective market shares through innovative incentives.

 

Total transaction volume data: huge fluctuations in the first half of this year, and transaction volume plummeted in May

 

In December 2023, the total transaction volume of the NFT market reached a record level. According to NFT Pulse, NFT sales on the Bitcoin network exceeded US$881 million for the first time, setting a new record for monthly sales. This figure significantly exceeded the sales of Ethereum and Solana, with Ethereum's NFT sales of US$365 million and Solana's sales of US$325 million. In general, the entire NFT market reached a transaction volume of approximately US$1.7 billion in December 2023.

 

But in January 2024, the NFT market's trading volume fell to $1.28 billion, down 24.7% from December 2023. But the overall trading volume in the first half of 2024 showed an up-and-down trend, reaching a high of $2.157 billion in March 2024. In May, the total NFT trading volume plummeted, from $1.38 billion in April to $795 million, a drop of 42%. NFT trading volumes on the three major blockchains, Bitcoin, Ethereum, and Solana, fell by 80.5%, 20%, and 50.1%, respectively. The number of NFT traders in May also fell compared to previous months, especially Bitcoin, where the number of traders fell from 393,000 in April to 114,400.

 

Year-over-year comparison of 2024 and 2023

 

January comparison

 

· January 2023: NFT market transaction volume is close to $946 million.

· January 2024: Transaction volume is $1.28 billion, an increase of 35.3% over the previous year, showing continued market growth.

 

May comparison

 

· May 2023: NFT market transaction volume is approximately $870 million.

· May 2024: Transaction volume drops to $795 million, a decrease of 8.6% over the same period of the previous year, reflecting a significant decline in the market.

 

 

Data source: NFT Pulse

 

Summary

 

Overall, despite the strong market performance in early 2024, the market has experienced significant volatility and declines over time, especially in May, when both market volume and activity declined. This suggests that the NFT market faces challenges in the first half of 2024, and further observation is needed on future market trends and recovery potential.

 

Multi-chain transaction volume: BTC market share continues to expand, once surpassing Ethereum

 

In the first half of 2024, the transaction volume market share of the NFT market has changed significantly among different blockchains. The following is the transaction volume market share of each major blockchain:

 

· Ethereum: The market share in 2023 is 72.3%. It fell in the first half of 2024 and then rebounded, losing its leading position for a time.

 

· Bitcoin: The market share in 2023 is 12.9%. The transaction volume fluctuated greatly in the first half of 2024. The market share once increased to about 40%, and then fell back to around 12%.

 

· Solana: The market share in 2023 is 7.4%, but in the first half of 2024, Solana's market share increased significantly to about 20%. Solana NFT transaction volume has the most stable market share in market fluctuations.

 

· Base: The market share in 2023 is negligible, at 2.3%. However, affected by MEME and Degen’s launch of L3, its NFT trading volume skyrocketed, rising to a maximum of 10.62% of the market share.

 

· Polygon: Its market share was 2.2% in 2023, but in the first half of 2024, its trading volume plummeted and plummeted, with huge fluctuations.

 

Data source: NTF Pulse

 

Specific month data (data source is NFT Pulse)

 

· January 2024: BTC’s NFT transaction volume market share in January was 9.4%, Ethereum was 66.67%, Solana was 17.75%, and Polygon was 5.9%. It is worth noting that Polygon’s transaction volume fell sharply this week.

 

· February 2024: BTC NFT trading volume increased significantly, mainly driven by Ordinals collections such as NodeMonkes, and the market share rose to 18.37%, while Ethereum was 62.15%, Solana was 17.85%, and Polygon's share fell to 1.32% this month. Affected by the MEME sector, Base's chain NFT trading volume began to improve this month, accounting for 0.15% of the market share.

 

· March 2024: In March, BTC NFT trading volume continued to rise, accounting for 26.02% of the market share, Ethereum was 48.76%, and Solana was 21.44%. This month, Ethereum's NFT trading volume share fell week by week, and Base emerged as a dark horse, reaching 6% of the trading volume market share in the last week of March.

 

· April 2024: BTC NFT's market share reached 33.47%, showing strong growth momentum, especially in early April, when its trading volume share once exceeded ETH, reaching 43.5%. In contrast, Ethereum NFT trading volume market share fell to 45%, Solana's market share fell slightly, but remained at around 16.37%, and Base was 3%.

 

· May 2024: In May, BTC NFT trading volume's market share plummeted to 12.37%, while Ethereum's market share recovered to 58.22%. Solana was 13.5%, while Base rose to 10.62%.

 

· June 2024: As of the deadline for this article (June 24), in June, the market share of BTC NFT trading volume continued to decline, at 11.76%, while Ethereum's market share recovered to 62.2%. Solana fell to 9.4%, Base fell to 4.56%, and Polygon rebounded to 15.83%.

 

Summary

 

In summary, the transaction volume market share of the NFT market in the first half of 2024 has undergone significant changes among different blockchains. The significant growth in BTC NFT trading volume is mainly due to the promotion of the Ordinals protocol. In January, BTC's market share was 9.4%, but by April this share had jumped to 33.47%, and at the beginning of the month it once surpassed Ethereum. Although BTC’s market share fell back in May and June, to 12.37% and 11.76% respectively, its overall performance still shows strong growth momentum.

 

In contrast, Ethereum’s market share fluctuated in the first half of the year, but it still dominated overall, falling from 66.67% in January to 45% in April, and then recovering to 58.22% and 62.2% in May and June. Solana performed more steadily, while Polygon’s market share experienced more significant fluctuations, especially in June when it rebounded to 15.83%.

 

These changes in market share not only reflect the dynamics of the NFT market, but also demonstrate the competition and development potential of different blockchains in the NFT ecosystem. As new protocols and new projects continue to emerge, NFT market share may continue to change in the coming months and years, bringing more opportunities and challenges to market participants.

 

Marketplace market share changes: Blur continues to lead, Magic Eden briefly took the lead in late May and early June

 

Market share of major NFT trading platforms in 2023

 

Blur: Due to its airdrop incentive strategy, zero transaction fees, and no enforcement of creator royalties, Blur successfully surpassed OpenSea and became the NFT Marketplace with the highest market share, accounting for 47.61% of the market share. This strategy attracted a large number of users, especially those who want to maximize trading profits.

 

OpenSea: Despite fierce competition, OpenSea has maintained its position as the leading NFT trading platform, accounting for 20.36% of the market share. As a veteran platform in the market, OpenSea is still the first choice for many users, especially in the Ethereum ecosystem.

 

X2Y2: With an average market share of 8.79% in 2023, it had a relatively high market share at the beginning of the year, but its market share was negligible by the end of the year. X2Y2 attracted a large number of users through low transaction fees and no-royalty strategies in the early stage, but its advantages gradually weakened as market competition intensified.

 

OKX NFT: In 2023, OKX NFT Marketplace emerged as a dark horse with an average annual market share of 7.4%, mainly due to its focus on the BTC ecosystem, becoming one of the main trading platforms for Ordinals NFT in the second half of the year. OKX's multi-chain support and zero-fee transactions quickly attracted a large number of users, especially in the Bitcoin ecosystem.

 

Magic Eden: With a market share of 2.66%, the NFT market, mainly dominated by Solana, saw a significant increase in its share at the end of 2023, mainly due to its expansion to multiple blockchains, including the BTC chain.

 

 

Data source: NFT Scan

 

Overall, the NFT market showed significant changes in market share in 2023. Major NFT trading platforms not only continued to innovate in technology and user experience, but also expanded multi-chain support and introduced various reward mechanisms to attract and retain users. This diverse competitive environment not only promotes the development of various platforms, but also promotes the prosperity and progress of the entire NFT market.

 

Market share of major NFT trading platforms in 2024: as of June 24

 

Blur: Continues to maintain its leading position, occupying 46.38% of the market share, and its main trading volume still comes from Ethereum, while the trading volume of Blast chain only accounts for 0.56%. OpenSea: Faced with fierce competition, OpenSea did not make any innovative measures this year, resulting in its market share falling to 15.96%. Despite losing its leading position, OpenSea is still one of the most important NFT trading platforms in the market, especially with a broad user base in the Ethereum ecosystem. X2Y2: The market share is negligible and has almost disappeared from the competition in the NFT track. OKX NFT: Performed steadily, with a market share of around 5.37%. As a multi-chain supported platform, the OKX NFT market supports multiple blockchains such as Ethereum, Solana, and BSC, and has attracted many users with its user-friendly interface and low transaction fees. Magic Eden: The market share continues to expand, reaching 11.74%, becoming the main trading platform for Solana and BTC NFT. Magic Eden's expansion strategy and potential airdrop plan have led to a sharp increase in its user base and transaction volume. Tensor: Due to the airdrop incentive plan, Tensor, one of the main trading platforms for Solana NFT, has seen its market share rise to 4.49% in the past six months. Tensor's incentive strategy has significantly increased user participation and trading activity.

 

 

Data source: NFT Scan

 

Summary

 

From the above information, it can be seen that Blur and Magic Eden performed particularly well in 2024, while OpenSea maintained an important position despite losing some market share. Emerging platforms such as OKX and Tensor are also gradually expanding their market influence through innovative incentives.

 

Conclusion

 

In the first half of 2024, the NFT market experienced significant fluctuations and overall unstable performance. Although the launch of the Bitcoin ETF brought new capital inflows, it did not significantly drive the rise of the entire market. On the contrary, the sharp decline in recent days has caused market panic, trading volume has dropped sharply, and investor sentiment is depressed. This market volatility shows high risk and uncertainty, and whether the NFT market can usher in a bull market in the future remains an open question.