In 2024, 98% of NFT drops were unprofitable. The market faces oversaturation and a sharp drop in trading volume, with only 0.2% of collections profitable - IcoHolder.

In 2024, the non-fungible token (NFT) market has faced significant challenges, with most collections failing to generate profits, signaling a troubling trend for investors. A recent study by NFTevening and the digital PR agency Storible, which analyzed more than 29,000 NFT collections released throughout the year, highlights the struggle of NFTs in a year marred by price drops and market oversaturation.

According to the report, a staggering 98% of NFT drops were unprofitable, with prices plunging by at least 50% within the first three days after launch. Additionally, a vast majority of NFT collections failed to garner sufficient trading activity, with many recording fewer than 10 trades in the first seven days. This low level of engagement suggests a growing disinterest among investors, particularly in a market flooded with new projects.

The market's woes are further demonstrated by the fact that 84% of NFT drops in 2024 failed to achieve any price increase above their mint price, meaning they did not generate additional value for holders. Of all the NFT collections released this year, only a tiny 0.2% saw any profits, and even among active collections, just 11.9% have been able to deliver returns.

The flood of new collections and the market's lack of innovation have contributed to a sharp decline in trading volume. Data from Dune Analytics reveals that OpenSea, one of the top NFT marketplaces, has seen a 76% drop in its daily trading volume from earlier in the year. With over 64% of NFT drops failing to gain traction and mint fewer than 10 times, it’s clear that the market is struggling to maintain momentum.

Despite these challenges, there remains hope among some NFT enthusiasts. A survey conducted by NFTevening showed that over 66% of NFT traders are holding onto their investments, confident in the long-term potential of NFTs. However, the outlook isn’t entirely optimistic. Approximately 33% of participants expressed intentions to leave the market, with over 70% planning to exit by 2026. A significant portion of this group, 36.4%, plans to exit by the end of 2024, while another 35.9% aim to leave by 2025.

With the NFT market facing ongoing hurdles, from oversaturation and scams to tight economic conditions, it remains to be seen whether the market can recover. As Bitcoin and altcoins hit new highs, NFTs have struggled to follow suit, and it may take significant market improvements to reignite investor enthusiasm.