4 months ago
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NFTs may have recently lost popularity, but there can never be a question about their continued relevance.
July is proving to be a very low month for non-fungible tokens (NFTs) following a recent report by data tracker CryptoSlam. The July 29 report shows the monthly volume of digital collectibles hitting $393 million as NFTs continue to trade below $14 million on a daily average.
If these figures are anything to go by, then July may end up being the lowest month for NFTs so far in the year running. That is, in terms of monthly trading volume.
Just last month, NFTs’ monthly sales volume plummeted to an 8-month low, after recording only $450 million in sales. This meant that it reached levels not seen since November 2023.
With the current momentum, however, it does not seem likely that this month will be any better than the last. That is because data shows that NFTs have been trending downward since the second quarter of 2024. For context, the second quarter brought about a 45% quarter-on-quarter drop for NFTs. That is, as the sales volume went from $4.1 billion recorded in Q1 to $2.24 billion in Q2.
Hope Emerges for NFTs
Although early July brought with it significantly lower volumes, NFTs have slightly jolted back to life. There has been a noticeable, though little, increase in transaction volumes for the month. Per CryptoSlam data, 9.9 million NFT transactions have been registered so far in July, signalling a 73% rise from June’s 5.7 million transactions.
So, even though NFT volumes are lower, the growing number of transactions sparks hope among experts who already share positive optimism for the asset class.
Besides, many of these so-called experts had previously noted that NFTs may have recently lost popularity, but there can never be a question about their continued relevance.
For instance, SuperRare co-founder Jonathan Perkins once said in public that nothing has changed about the utility of NFTs. Interestingly, CryptoSlam founder Randy Wasinger shares the same sentiments as Perkins. Wasinger acknowledges that a few NFT applications may have had their time and never return to the market scene. Nonetheless, NFTs will continue to be a major token standard, one that is here to stay, he added.
Wasinger believes that while certain use cases like the picture-for-profile (PFPs) may never regain the level of prominence they once had a year ago, there is no denying the fact that more Web 3.0 applications will likely need NFTs.
