August 2024 NFT Sales Plunge to $374 Million
August 2024 marked a significant downturn for the non-fungible token (NFT) market, with monthly sales plummeting to $374 million. This figure represented the lowest monthly sales volume recorded this year and the first time NFT sales have dipped below $400 million in 2024.
The declining trend comes after a promising start to the year, with an all-time high of $1.6 billion in monthly sales in March. NFTs, which once captured the attention of investors and collectors, have seen a consistent decline in sales volume since April, when sales dropped to $1.2 billion.
A further drop in monthly sales volume resulted in $598M worth of sales in May. By July, the market recorded $427 million in sales. Even though the sales volume was lower than in previous months, there was an 87% increase in the number of transactions.
NFT transactions jumped from 5.7 million in June to 10.7 million in July. However, this uptick in transactions did not translate into sustained market growth. In August, non-fungible token transactions were 7.3 million, signaling a 31% drop. Interestingly, while the number of transactions decreased, the average value of each NFT sale increased by 27%, rising from $39.93 in July to $50.74 in August.
Speculative Capital Shifts from NFTs to Memecoins?
The shift in the market is also reflected in the behavior of speculative capital. Solo Ceesay, co-founder and CEO of social wallet Calaxy, commented that capital has been moving away from NFTs into memecoins.
The transfer of high-value NFTs, such as the once most expensive CryptoPunk, also indicates changing market dynamics. On August 19, this blue-chip non-fungible token was quietly moved to a different wallet. Ceesay suggests that the owner might have redirected their investment into memecoins.
Trump’s New NFT Series Earns $2.17 Million
Recently, Donald Trump introduced his fourth NFT collection, “Series 4: The America First Collection,” and it generated considerable interest and sales. In 24 hours, the collection recorded over 22,000 sales, bringing in $2.17 million.
This new collection is part of Trump’s expanding involvement in the cryptocurrency and digital asset space, which he previously viewed with skepticism. The collection, featuring Trump in various outfits and poses, followed the trend of his earlier NFT releases.
Priced at $99 each, the initial sales account for only 6% of the 360,000 total NFTs available. If all the NFTs in this series are sold, the revenue would exceed $35 million, highlighting the strong earning potential of this collection.
However, these NFTs are not yet available for trading on secondary markets. Buyers will have to wait until January 31, 2025, to resell them, a restriction that might influence their market value.
This delay in trading could affect the dynamics of the secondary market. Per the terms of sales, collectors, and investors need to hold onto their purchases for more than a year before they can trade them.
Trump’s Cryptocurrency Embrace Grows Stronger
After previous reservations, Trump has now embraced digital assets, including accepting cryptocurrency donations for his political campaigns. This new approach has brought in significant revenue and strengthened his connection with the crypto community.
Since his first NFT launch in December 2022, Trump’s collections have experienced mixed results. While the initial series saw a rise in floor prices, subsequent collections were not profitable at all.
Despite the volatility in the NFT market, Trump continues to release new collections, with the latest showing early signs of success. Trump’s NFT ventures have also contributed to his financial portfolio, with recent disclosures revealing over $7 million in earnings from NFT sales.
The release of the “America First Collection” comes at a time when the regulatory environment for NFTs is becoming more complex. Meanwhile, the US SEC has sent a Wells Notice to OpenSea, the platform hosting Donald Trump’s NFT collection.
This move signals potential regulatory action over NFTs, which it deemed as securities. Trump has publicly criticized the SEC’s leadership, specifically Chair Gary Gensler, and has vowed to make changes if he returns to the presidency.
