NFT Track Mid-Year Report: Variations Who is the “big winner” behind it?

Author: hamster Source: ChainFeeds

TL,DR:

• Total transaction volume data: Although trading volume reached US$1.28 billion in January 2024, an increase of 35.3% year-on-year from January 2023.But the market then experienced ups and downs, especially in May, when trading volume plummeted to $795 million, a 42% drop from April.

• Multi-chain transaction volume: Ethereum continues to dominate the NFT market, but its market share fluctuated in the first half of the year, falling from 66.67% in January to 45% in April, before recovering to 58.22% and 62.2% in May and June.Boosted by the Ordinals protocol, Bitcoin’s share in the NFT market grew significantly, 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 fluctuated significantly.

• Main NFT trading platforms: Blur maintains a leading position, accounting for 46.38% of the market share.Magic Eden expanded its market share to 11.74% through expanding its multi-chain support and airdrop program, and its market share to 15.96%.In addition, emerging platforms such as OKX NFT and Tensor maintain and expand their respective market share through innovative incentives.

Total trading volume data: volatility in the first half of this year, trading volume plummeted in May

In December 2023, the total trading volume in the NFT market reached a record level.According to NFT Pulse, NFT sales on the Bitcoin network exceeded US$881 million for the first time, setting a record high in sales in a single month.This figure significantly outpaced Ethereum and Solana’s sales, with Ethereum’s NFT sales of $365 million and Solana’s $325 million.Overall, the entire NFT market reached about $1.7 billion in December 2023.

But in January 2024, the NFT market’s trading volume fell to $1.28 billion, down 24.7% from December 2023.However, the overall trading volume in the first half of 2024 showed an upward and downward trend.In March 2024, total trading volume reached a high of $2.157 billion.Total NFT trading volume plummeted in May, down from $1.38 billion in April to $795 million, a 42% drop.NFT transaction volumes on the three major blockchains, Bitcoin, Ethereum and Solana, fell by 80.5%, 20% and 50.1% respectively.The number of NFT traders in May also declined from the previous months, especially Bitcoin, which saw its number of traders decline from 393,000 in April to 114,400.

Year-on-year comparison between 2024 and 2023

January comparison

• January 2023: NFT market trading volume is close to US$946 million.

• January 2024: Trading volume was US$1.28 billion, up 35.3% from the previous year, showing continued market growth.

May comparison

• May 2023: The NFT market has a trading volume of approximately $870 million.

• May 2024: Trading volume fell to $795 million, down 8.6% from the same period of the previous year, reflecting a significant decline in the market.

Source: NFT Pulse

Summarize

Overall, despite strong market performance in early 2024, the market experienced significant volatility and decline over time, especially in May, with both trading volume and activity in the market falling.This shows that the NFT market faces challenges in the first half of 2024 and requires further observation of future market trends and recovery potential.

Multi-chain trading volume: BTC’s market share continues to expand, surpassing Ethereum for a time

In the first half of 2024, the volume market share of the NFT market changed significantly between different blockchains.The following is the market share of transaction volume and markets for each major blockchain:

• Ethereum: The market share in 2023 is 72.3%, after falling in the first half of 2024, rebounding again, losing its leading position for a time.

• Bitcoin: The market share in 2023 is 12.9%,Trading volume fluctuated sharply in the first half of 2024, with market share growing to around 40%, and then falling back to around 12%..

• Solana: The market share was 7.4% in 2023, but in the first half of 2024, Solana’s market share increased significantly, reaching about 20%.Solana NFT’s trading volume is the most stable market share in market volatility.

• Base:The market share in 2023 was negligible at 2.3%.However, due to the launch of L3 by MEME and Degen, its NFT trading volume soared, rising to a maximum of 10.62% market share.

• Polygon: The market share was 2.2% in 2023, but in the first half of 2024,Its trading volume plummeted and surged, with huge fluctuations.

Source: NTF Pulse

Specific month data (The data source is NFT Pulse)

1. January 2024:BTC’s NFT trading volume market share in January was 9.4%, Ethereum was 66.67%, Solana was 17.75%, and Polygon was 5.9%, which is worth noting this monthPolygon trading volume plummeted with weekly.

2. February 2024: BTC NFT trading volume has increased significantly, mainly driven by Ordinals collections such as NodeMonkes,Market share rose to 18.37%,While Ethereum is 62.15%, Solana is 17.85%, Polygon’s share fell to 1.32% this month.Affected by the MEME sector,This month, the NFT trading volume of Base’s chain began to improve, accounting for 0.15% of the market share.

3. March 2024: March,BTC NFT trading volume continues to rise, accounting for 26.02% of the market share, Ethereum is 48.76%, and Solana is 21.44%,This month, Ethereum NFT trading volume share fell week by week, and Base emerged in a sudden trend, reaching 6% in the last week of March.

4. April 2024:BTC NFT has a market share of 33.47%, showing strong growth momentum,Especially in early April, the trading volume share once exceeded ETH, reaching 43.5%..By comparison, Ethereum NFT market share fell to 45%, while Solana’s market share fell slightly, but remained at around 16.37%, and Base’s 3%.

5. May 2024: May,BTC NFT trading volume plummeted to 12.37%, while Ethereum’s market share recovered to 58.22%.Solana is 13.5%,However, Base rose to 10.62%.

6. June 2024: As of the deadline for this article (June 24),In June,BTC NFT trading volume continues to decline at 11.76%, while Ethereum’s market share recovered to 62.2%.Solana dropped to 9.4%,Base dropped to 4.56%, Polygon rebounded to 15.83%.

Summarize

To sum up, the transaction volume market share of the NFT market in the first half of 2024 experienced significant changes between different blockchains.The significant increase in BTC NFT transaction volume is driven mainly by the Ordinals protocol.In January, BTC had a market share of 9.4%, but by April this share had jumped to 33.47%, and surpassed Ethereum at the beginning of the month.Although BTC’s market share declined in May and June, falling to 12.37% and 11.76%, respectively,Overall performance still shows strong growth momentum.

By comparison,Although Ethereum’s market share fluctuated in the first half of the year, it still dominated the market, down from 66.67% in January to 45% in April, before recovering to 58.22% and 62.2% in May and June.Solana performed relatively solidly, while Polygon’s market share experienced significant volatility, especially rebounding to 15.83% in June.

These changes in market share not only reflect the dynamics of the NFT market, but also demonstrate the competitive and development potential of different blockchains in the NFT ecosystem.With new agreements and new projects emerging, NFT market share may continue to change in the coming months and years, bringing more opportunities and challenges to market participants.

Marketplace market share changes: Blur continues to lead, Magic Eden takes the lead in the end of May and early June

Market share of major trading platforms in the NFT market in 2023

1. Blur: Due to its airdrop incentive strategy, zero transaction fees and no enforcement of creator royalties,Blur successfully surpassed OpenSea to become the highest-market NFT Marketplace, accounting for 47.61% of the market share.This strategy attracts a large number of users, especially those who want to maximize transaction profits.

2. OpenSea: Despite the fierce competition, OpenSea still maintains its position as a leading NFT trading platform, accounting for 20.36% of the market share.As an old platform in the market, OpenSea is still the first choice for many users, especially within the Ethereum ecosystem.

3. X2Y2:The average market share in 2023 was 8.79%, which had a relatively high market share at the beginning of the year, but by the end of the year, the market share was as low as negligible..X2Y2 attracted a large number of users in the early stages through low transaction fees and no royalties, but its advantages gradually weakened as market competition intensified.

4. OKX NFT:In 2023, OKX NFT Marketplace emerged as a new force, with an annual average market share of 7.4%. It is mainly due to its focus on the BTC ecosystem and became one of the main trading platforms of Ordinals NFT in the second half of the year.OKX’s multi-chain support and zero-fee transactions have quickly attracted a large number of users, especially in the Bitcoin ecosystem.

5. Magic Eden: Accounting for 2.66% of the market share, mainly based on Solana, the NFT market has grown significantly at the end of 2023, mainly due to its expansion to multiple blockchains, including BTC chains.

Source: NFT Scan

Overall, the NFT market showed significant changes in market share in 2023. Major NFT trading platforms not only continuously innovate in technology and user experience, but also attract and retain users by expanding multi-chain support and introducing various reward mechanisms..This diversified competitive environment not only promotes the development of various platforms, but also promotes the prosperity and progress of the entire NFT market.

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

1. Blur: Continue to maintain its leading position,It accounts for 46.38% of the market share, and its main trading volume is still derived from Ethereum.The transaction volume of the Blast chain only accounts for 0.56%.

2. OpenSea: Faced with fierce competition, OpenSea has not made any innovative measures this year.Reduced its market share to 15.96%.Despite losing its leading position, OpenSea remains one of the most important NFT trading platforms on the market, especially with a broad user base in the Ethereum ecosystem.

3. X2Y2:Negligible market share, almost disappeared from the competition in the NFT track.

4. OKX NFT: It performed soundly and maintained its market share at around 5.37%.As a multi-chain supported platform, OKX NFT market supports multiple blockchains such as Ethereum, Solana, BSC, etc., and has attracted many users with its user-friendly interface and low transaction fees.

5. Magic Eden:The market share continues to expand to 11.74%, becoming the main trading platform for Solana and BTC NFT, Magic Eden’s expansion strategy and potential airdrop plans have greatly increased its user volume and trading volume.

6. Tensor: Due to the airdrop incentive program, Tensor, one of Solana NFT’s main trading platforms, has seen its market share rise to 4.49% in the past six months.Tensor’s incentive strategy significantly improves user engagement and transaction activity.

Source: NFT Scan

Summarize

From the above information, it can be seen that Blur and Magic Eden performed particularly well in 2024, while OpenSea still maintains an important position despite losing some of its market share.Emerging platforms such as OKX and Tensor are also gradually expanding their market influence through innovative incentives.

in conclusion

In the first half of 2024, the NFT market experienced significant fluctuations and overall performance was unstable.Although the launch of Bitcoin ETFs has brought about new capital inflows, it has not significantly driven the overall market to rise.On the contrary, the recent sharp decline has triggered market panic, trading volume has dropped sharply, and investors are in a downturn.This kind of market volatility shows high risks and uncertainty, and whether the NFT market can usher in a bull market in the future is still an open question.