Mid-Year Report on the NFT Track: Volatile, Who Are the "Big Winners" Behind It?

Author: HAMSTER, ChainFeeds

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

TL,DR:

• Total transaction volume data: Although the transaction volume in January 2024 reached $1.28 billion, a year-on-year increase of 35.3% compared to January 2023, the market subsequently experienced ups and downs, especially in May, when the transaction volume plummeted to $795 million, a decline of 42% from April.
• Multi-chain transaction volume: Ethereum continued to dominate the NFT market, but its market share fluctuated in the first half of the year, dropping from 66.67% in January to 45% in April, then recovering to 58.22% and 62.2% in May and June, respectively. Driven by the Ordinals protocol, Bitcoin's share in the NFT market significantly increased 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 experienced significant fluctuations.
• Major NFT trading platforms: Blur maintained its leading position with a market share of 46.38%. Magic Eden expanded its market share to 11.74% through multi-chain support and airdrop programs, while OpenSea's market share dropped to 15.96%. Additionally, emerging platforms like OKX NFT and Tensor maintained and expanded their respective market shares through innovative incentive measures.

Total transaction volume data: Huge fluctuations in the first half of the year, with a sharp drop in May

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

However, in January 2024, the transaction volume of the NFT market dropped to $1.28 billion, a decrease of 24.7% compared to December 2023. The overall transaction volume in the first half of 2024 showed a trend of rising and falling, peaking at $2.157 billion in March 2024. In May, the total transaction volume of NFTs plummeted from $1.38 billion in April to $795 million, a decline of 42%. The NFT transaction volumes on the three major blockchains—Bitcoin, Ethereum, and Solana—decreased by 80.5%, 20%, and 50.1%, respectively. The number of NFT traders in May also decreased compared to previous months, particularly for Bitcoin, where the number of traders dropped from 393,000 in April to 114,400.

Year-on-year comparison between 2024 and 2023

January comparison

• January 2023: The NFT market transaction volume was nearly $946 million.
• January 2024: The transaction volume was $1.28 billion, an increase of 35.3% compared to the previous year, indicating sustained market growth.

May comparison

• May 2023: The NFT market's transaction volume was approximately $870 million.
• May 2024: The transaction volume decreased to $795 million, an 8.6% decline compared to the same period last year, reflecting a significant market downturn.

Data source: NFT Pulse

Summary

Overall, despite a strong market performance at the beginning of 2024, the market experienced significant fluctuations and declines over time, particularly in May, when both transaction volume and activity decreased. This indicates that the NFT market faced challenges in the first half of 2024, necessitating further observation of future market trends and recovery potential.

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

In the first half of 2024, the transaction volume market share of the NFT market underwent significant changes across different blockchains. Here are the transaction volume market share details for major blockchains:

• Ethereum: The market share in 2023 was 72.3%, which fell and then rebounded in the first half of 2024, briefly losing its leading position.
• Bitcoin: The market share in 2023 was 12.9%, with significant fluctuations in transaction volume in the first half of 2024, peaking at around 40% before dropping back to about 12%.
• Solana: The market share in 2023 was 7.4%, but in the first half of 2024, Solana's market share significantly increased to around 20%, with the most stable transaction volume market share amid market fluctuations.
• Base: The market share in 2023 was negligible at 2.3%. However, influenced by MEME and Degen launching L3, its NFT transaction volume surged, peaking at a market share of 10.62%.
• Polygon: The market share in 2023 was 2.2%, but in the first half of 2024, its transaction volume fluctuated significantly.

Data source: NFT Pulse

Monthly data (data source: NFT Pulse)

• January 2024: BTC's NFT transaction volume market share was 9.4%, Ethereum's was 66.67%, Solana's was 17.75%, and Polygon's was 5.9%. Notably, Polygon's transaction volume dropped sharply during the month.
• February 2024: BTC NFT transaction volume significantly increased, mainly driven by collections like NodeMonkes, with the market share rising to 18.37%, while Ethereum was at 62.15% and Solana at 17.85%. This month, Polygon's share dropped to 1.32%. Influenced by the MEME sector, Base's NFT transaction volume began to show improvement, with a market share of 0.15%.
• March 2024: In March, BTC NFT transaction volume continued to rise, capturing 26.02% of the market share, while Ethereum was at 48.76% and Solana at 21.44%. Ethereum's NFT transaction volume share declined weekly, while Base surged, reaching a market share of 6% 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 transaction volume share briefly surpassed ETH at 43.5%. In contrast, Ethereum's NFT transaction volume market share fell to 45%, Solana's market share slightly declined but remained around 16.37%, and Base was at 3%.
• May 2024: In May, BTC NFT transaction volume market share plummeted to 12.37%, while Ethereum's market share recovered to 58.22%. Solana was at 13.5%, while Base rose to 10.62%.
• June 2024: As of the publication date of this article (June 24), in June, BTC NFT transaction volume market share continued to decline to 11.76%, while Ethereum's market share recovered to 62.2%. Solana dropped 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 experienced significant changes across different blockchains. The notable growth in BTC NFT transaction volume was primarily driven by the Ordinals protocol. In January, BTC's market share was 9.4%, but by April, it had surged to 33.47%, briefly surpassing Ethereum. Although BTC's market share declined in May and June to 12.37% and 11.76%, respectively, its overall performance still showed strong growth momentum.

In contrast, Ethereum's market share, while fluctuating in the first half of the year, remained dominant, dropping from 66.67% in January to 45% in April, then recovering to 58.22% and 62.2% in May and June. Solana performed relatively steadily, while Polygon's market share experienced significant fluctuations, especially rebounding to 15.83% in June.

These changes in market share not only reflect the dynamics of the NFT market but also showcase the competition and development potential of different blockchains within the NFT ecosystem. With the continuous emergence of new protocols and projects, the NFT market share may continue to change in the coming months and years, presenting more opportunities and challenges for market participants.

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

2023 NFT market major trading platforms market share

Blur: Due to its airdrop incentive strategy, zero transaction fees, and non-enforcement of creator royalties, Blur successfully surpassed OpenSea to become the highest market share NFT marketplace, capturing 47.61% of the market share. This strategy attracted a large number of users, especially those looking to maximize trading profits.

OpenSea: Despite facing fierce competition, OpenSea still maintained its position as a leading NFT trading platform, holding 20.36% of the market share. As a long-established platform in the market, OpenSea remains the first choice for many users, particularly within the Ethereum ecosystem.

X2Y2: The average market share in 2023 was 8.79%, having a relatively high market share at the beginning of the year, but dropping to negligible levels by the end of the year. X2Y2 initially attracted a large number of users through low transaction fees and no royalty strategy, but as market competition intensified, its advantages gradually diminished.

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

Magic Eden: Holding 2.66% of the market share, primarily focused on the Solana NFT market, its share significantly increased by the end of 2023, mainly due to its expansion to multiple blockchains, including the BTC chain.

Data source: NFT Scan

Overall, the NFT market in 2023 exhibited significant changes in market share, with major NFT trading platforms continuously innovating in technology and user experience, as well as expanding multi-chain support and introducing various reward mechanisms to attract and retain users. This diverse competitive environment not only promotes the development of each platform but also drives the prosperity and progress of the entire NFT market.

2024 NFT market major trading platforms market share: As of June 24

• Blur: Continues to maintain its leading position with a market share of 46.38%, with the majority of its transaction volume still coming from Ethereum, while transactions on the Blast chain only accounted for 0.56%.
• OpenSea: Facing fierce competition, OpenSea has not made any innovative moves this year, leading to a decrease in its market share to 15.96%. Despite losing its leading position, OpenSea remains one of the most important NFT trading platforms in the market, particularly with a broad user base within the Ethereum ecosystem.
• X2Y2: Market share is negligible, almost disappearing from the NFT competition.
• OKX NFT: Performing steadily, maintaining a market share of around 5.37%. As a multi-chain supported platform, OKX NFT market supports multiple blockchains including Ethereum, Solana, BSC, etc., attracting many users with its user-friendly interface and low transaction fees.
• Magic Eden: Market share continues to expand, reaching 11.74%, becoming a major trading platform for Solana and BTC NFTs. Magic Eden's expansion strategy and potential airdrop plans have led to a surge in its user base and transaction volume.
• Tensor: Due to its airdrop incentive program, Tensor, as one of the major trading platforms for Solana NFTs, saw its market share rise to 4.49% in the past six months. Tensor's incentive strategy significantly increased user engagement 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, despite losing some market share, still maintains an important position. Emerging platforms like OKX and Tensor are gradually expanding their market influence through innovative incentive measures.

Conclusion

In the first half of 2024, the NFT market experienced significant fluctuations, with overall performance being unstable. Although the launch of Bitcoin ETFs brought new capital inflows, it did not significantly drive up the entire market. On the contrary, the recent sharp decline triggered market panic, leading to a substantial drop in transaction volume and low investor sentiment. This market volatility indicates high risks and uncertainties, and whether the NFT market can usher in a bull market remains an open question.