NFTs in 2024: Surviving challenges, embracing growth, eyeing the future

2024-12-24 11:39:58 Primitive Reading

From cointelegraph by Ezra Reguerra

Non-fungible tokens (NFTs) remained an integral component in the Web3 space throughout 2024 despite some big setbacks for the asset class. Industry commentators and professionals maintain that the utility of NFTs remains intact, fueling optimism for a revival.

While media outlets have occasionally declared NFTs dead, holders continue to trade, and data tracker CryptoSlam shows that NFTs have recorded roughly $8.5 billion in sales this year.

The sales volume may be lower than in previous years, but the number of buyers increased by 62% from 4.6 million in 2023 to 7.5 million in 2024. This is also 37% more than the 5.4 million unique buyers recorded in 2022, a year widely considered the peak of NFTs. So, while volumes may be down, there is still a growing demand for the asset class.

Even though the space has endured, there’s no denying that NFT holders took a beating this year, from a seven-month downward streak and major projects dropping out of the space to the United States Securities and Exchange Commission sending Wells notices to NFT projects.

NFT projects faced numerous setbacks throughout 2024

In January, social media platform X removed support for NFTs after a year of allowing paid subscribers to link them to their profile pictures. One community member called it the “bottom” for NFTs, while another said it’s “another black eye” for the industry.

Some questioned the decision to remove the feature, arguing it had provided real utility for users and bringing up the issue of bot accounts and scammers. One community member said NFT profile pictures allowed users to confirm that the people they were interacting with were real.

The same month, video game retailer GameStop announced it would shut down its NFT marketplace, blaming the lack of regulatory clarity in the US.

American gambling company DraftKings made a similar move in July, shutting down its NFT business, including its Reignmakers collections and marketplace. The business cited “legal developments” as the reason.

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