Key Challenges for NFTs in 2024
- Decreasing Support:
- Social media platform X removed NFT integration for profile pictures in January.
- GameStop closed its NFT marketplace, citing regulatory uncertainty.
- DraftKings, Immutable, and Kraken also shut down their NFT marketplaces later in the year.
- Regulatory Pressure:
- The SEC issued Wells notices to major NFT entities, including OpenSea and CyberKongz.
- OpenSea faced allegations of offering unregistered securities.
- CyberKongz was scrutinized for its token use in blockchain gaming.
- Market Downturn:
- NFT sales volumes dropped for seven consecutive months, hitting a record low in September.
|
Month |
Sales Volume (in $) |
|
March |
1.6 billion |
|
September |
Less than 300 million |
|
October |
356 million |
|
November |
562 million |
Signs of Recovery
After a tough year, NFTs started to show some signs of recovery in October and November:
- October saw sales increase by 18% due to Ethereum, Bitcoin, and Solana-based NFTs.
- Sales in November reached $562 million, the highest in six months.
Predictions for 2025
Experts believe NFTs will evolve and expand into new use cases:
- Broader Applications:
Jana Bertram of RARI Foundation suggests NFTs could extend into areas like identity verification and healthcare. - Bitcoin NFTs:
OKX’s Lennix Lai noted a 55% increase in Bitcoin Ordinals trading volume from October to November. He predicts significant growth for Bitcoin-based NFTs. - Market Growth:
Yat Siu of Animoca Brands thinks NFTs will have an even better year than 2021 and 2022, especially in Web3 gaming.
While 2024 was a tough year for NFTs, the industry has shown resilience. A focus on innovation and practical applications could drive their revival in 2025. Industry leaders remain optimistic, pointing to the untapped potential of NFTs in gaming, identity, and ownership solutions.