According to CoinGecko, the NFT market is still in a bear phase

According to CoinGecko’s latest report, the NFT market is experiencing a period of significant difficulty.

Unlike the rest of the crypto assets, where participation is increasing, the non-fungible token exchanges are still in a bear market.

The perspective is reflected both on the front end of the prices of the major collections and on the total sales volumes of the market.

Let’s look at everything in detail below.

CoinGecko: The crypto winter for the NFT market is not over yet

According to CoinGecko, the largest independent cryptocurrency data aggregator, the NFT market is still in a bear market.

The latest published report clearly shows how the community has significantly reduced its investment in the sector.

While on the one hand the crypto asset market has grown significantly in 2024, we cannot say the same for its non-fungible token counterpart.

Especially in the third quarter CoinGecko sees trading volumes decrease by 61% from $3.1 to $1.2 billion. At the same time, NFT lending volumes also fell dramatically, by almost 74%, from $1.1 billion to $284 million.

After the strong growth of 2021, this market niche has not recovered, despite continued technological innovation.

Users prefer to allocate their liquidity to assets that are easier to liquidate and offer greater return opportunities.

Also contributing to this grim scenario for the NFT market is the influence of Bitcoin, which has increased its dominance over the rest of the sector by 50% in the past two years.

Furthermore, the lack of a favorable landscape for speculation and the emergence of a wide range of different investment options have taken away much of the liquidity that was present in the NFT world until recently.

However, these types of unique assets of their kind remain a fundamental resource for activities such as tokenizzazione, gaming and l’arte.

More and more organizations are implementing non-fungible tokens within their operations, reflecting the utility value of this revolution that remains undervalued by the market.

Prices of the major collections according to CoinGecko data

According to CoinGecko data, the most important collections of the NFT market lose value in terms of dollars and ETH.

Compared to the historic highs of late 2021, the most established collections’ listings are down sharply today.

For example the “CryptoPunks”, which had a floor price of 120 ETH in October 2021, are now worth only 26.29 ETH.

Moving to FIAT based on Ethereum’s historical prices, the loss seems even more dramatic, with over $350,000 of value wiped out.

The total capitalization of the collection remains 267,742 ETH, which is equivalent to approximately $700 million.

Source: https://www.CoinGecko.com/en/nft/cryptopunks

The same fate of the CryptoPunks has happened to others too NFTs on the market, such as the “Bored Ape Yacht Clubs”, “Azuki”, “Mad Lads” etc.

As CoinGecko highlights, all those cryptographic works of art that soared during the last bull market are now in the icy bear market.

Only a few exceptions from the recently created collections remain, such as Milady and Pudgy Penguins, which have increased their bottom price in the past year.

In any case, there was a small sign of recovery last week: while the crypto market fell, the market capitalization of NFTs rose by 0.58%.

It could be the start of a long recovery phase for prices, which will need to be confirmed in the coming months to gain credibility.

Sales volumes for the NFT market will decline throughout 2024

As mentioned in the CoinGecko reporteven NFT sales volumes have fallen sharplywhich reflects the low market interest in these products.

In the past 30 days, revenue on Ethereum has fallen 43% to $110 million.
The same on Bitcoin and Solana are down 16% and 39% respectively, while the biggest loss was on Polygon with a decline rate of 70%.

Overall, the NFT market handled $303 million in sales in September, compared to $370 million in the previous month.

This scenario has remained unchanged since December 2023, with data for each subsequent month trending downward.

It was not until March 2024 that there was an increase in trading volumes, supported by general market euphoria, which was then dampened in the following weeks.

From the CoinGecko and CryptoSlam data we notice that compared to the peak in December, turnover has fallen by more than 1.4 billion dollars.

If we take the record high of January 2022 as a reference, when sales reached $6 billion, losses amount to 95%.

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Source: https://www.cryptoslam.io/nftglobal?timeFrame=month

It is clear that the NFT market is still in crisis and has failed to get out of the 2022 bear market.

The first indicator of a recovery in this sense would be that for two consecutive months sales volumes would exceed the billion dollars, which would show continuity in speculation.

Until then, it is likely that the NFT sector will continue to underperform Bitcoin and the other crypto tokens.