NFT Market Faces Challenges In 2024 Amid Overcrowding

According to Odaily, a recent report by NFTevening and Storible titled '2024 NFT Drops Status' reveals significant challenges in the NFT market this year. The report, which analyzed over 29,000 NFT collections released throughout the year, compiled data from OpenSea and Dune Analytics. It highlights that the market is oversaturated, with an average of 3,635 NFT collections being created each month in 2024. Notably, 98% of these NFT drops have not been profitable, with no recorded trading activity since September, leading to their classification as failures. Additionally, 98% of NFT prices have dropped by at least 50% within the first three days of their launch. Furthermore, the report indicates that 84% of NFTs have their all-time high prices equivalent to their mint prices, suggesting they have not gained any additional value. NFTevening's analysis shows that only 0.2% of all NFT collections have been profitable for investors. Even among NFTs that are actively traded or considered 'active,' only 11.9% have proven to be profitable. Data from Dune Analytics reveals a 76.32% decline in OpenSea's daily trading volume compared to earlier this year. Additionally, the minting volume has been affected, with 64% of NFTs being minted fewer than 10 times.