In this week’s newsletter, we delve into the world of non-fungible tokens (NFTs) in 2024, uncovering how they’ve overcome challenges and continued to thrive. From market highs to unexpected declines, there’s much to unpack about the year that shaped the NFT landscape.
The Year In NFT Sales
One of the standout achievements of 2024 was the $8.8 billion in total sales volume recorded by digital collectibles. This figure represents a significant increase compared to 2023, with the gap narrowing just shy of 1.1%. While Ethereum and Bitcoin dominated the NFT market with combined sales exceeding $6.2 billion, third-party platforms like Solana delivered impressive results as well.
Ethereum emerged as the top blockchain for NFTs, generating $3.1 billion in transactions, while Bitcoin-based NFTs reached a staggering $4.9 billion. However, Solana’s dominance continues to grow, with its sales hitting $1.4 billion—only slightly behind Ethereum. Despite this, Bitcoin-based tokens still hold the highest all-time sales, with $44.9 billion recorded since 2016.
The Decline Of Runes
A closer look at one of the year’s most notable trends brings us to the story of Runes—a once-thriving protocol on Bitcoin that is now struggling to maintain its dominance. In December, Runes saw a significant drop in transaction volume, with its share of Bitcoin-based transactions plummeting from 80% earlier in the year to just 9%.
On April 23, Runes had over 753,000 transactions, surpassing other protocols like Ordinals, BRC-20s, and even Bitcoin itself. However, December marked a turning point as investor interest waned—despite Bitcoin’s price swings and the protocol’s continued operation, it’s clear that many are losing faith in Runes-based NFTs.
In the meantime, Christmas Day saw a bright spot with Runes holding a modest 19.9% share of Bitcoin transactions—a reminder of just how much potential this platform still holds.
NFTs: Surviving The Challenges
Despite the challenges faced by platforms like Runes, the broader NFT market proved resilient in 2024. While some viewed the year as a “death blow” for digital collectibles, others saw it as an opportunity for growth and innovation. NFTs’ survival has been attributed to their ability to adapt to changing market conditions, with many artists and creators leveraging new technologies to reach audiences.
The NFT market remains one of the most dynamic sectors in cryptocurrency, with trends like multi-asset NFTs and cross-chain interoperability driving demand. As regulatory frameworks continue to evolve, these platforms are better positioned to thrive in a competitive landscape.
2025 Predictions
With 2024 behind us, it’s time to look ahead. Animoca Brands’ Chairman Yat Siu and OKX’s global chief commercial officer Lennix Lai recently shared their insights on the NFT market for 2025. They predict a continued expansion of the digital collectibles space, with a focus on increasing accessibility and user engagement.
As we head into the new year, it’s clear that NFTs will remain a cornerstone of the cryptocurrency ecosystem. Whether it’s through enhanced user experiences or innovative financial systems, there’s no doubt that these tokens are here to stay—and 2025 is just the beginning of their journey.
This concludes our look at 2024—what an unforgettable year it was! With NFTs continuing to evolve and transform the digital landscape, there’s no shortage of opportunities ahead. Stay tuned for more updates as we explore the latest trends in this rapidly growing space.