Are NFTs dead or alive? The year 2024 may well be remembered as the year that NFTs died, and it all started with AI.
AI dominated the conversation in 2023 and is still the hegemon in the hype, with search volumes skyrocketing by 13,210%, leaving everything else, including NFTs, in the dust.
NFTs’ search interest nosedived by 82% by early 2024, and their value has cratered 90% since the 2021 peak.
Does AI’s rise mean NFTs are dead? Not necessarily. But NFTs are in a bad position that could oscillate either way.
Are NFTs Dead? The Decline and Evolution of the NFT Market
Speculators began to write off NFTs as a fallen fad after 2022’s crypto scandals, apropos FTX and Terra Luna.
The reality is more nuanced. Despite what it might look like, 2024 shows investors still heavily invested in NFTs, suggesting the market is evolving with significant potential.
Market cap and trading volume picked up early in the year before steadying in Q2. This points to a more stable market where prime NFTs still matter.
Sales dropped from $4.14 billion in Q1 to $2.32 billion in Q2, thanks to a broader market slump and memecoin mania. Yet, the balance between buyers and sellers suggests the market could stabilize.
The Future of NFTs: Transformation and Opportunities
Some cryptos need it; others, like NFTs, might thrive in niche circles.
Think of it like fine art—NFTs appeal to those who get digital art and see investment potential.
Besides that, leading platforms like CryptoSlam, NonFungible, and DappRadar forecast major shifts in 2024. New creators, artists, and derivative products are flooding into the NFT market, signaling there’s still something going on there.
It’s not like the fidget spinner or MySpace, where literally no one uses it.
The focus is shifting from quick gains to sustainable value, and calling the NFT market dead is not only premature but also untrue.
