Big Loss in NFT Market as Demand for Memecoins Increases

According to the investment manager of Apollo Crypto, the recent frenzy of famous, political, and animal-themed memecoins and the downturn in the crypto market may have led to a 44% decline in NFT sales in the second quarter.

Data from CryptoSlam shows that NFT sales dropped from 4.14 billion dollars in the 1st quarter to 2.32 billion dollars in the 2nd quarter. Henrik Andersson, Chief Investment Officer at Apollo Crypto, said in an interview with Cointelegraph, “BTC fell by 15% in the 2nd quarter, and many altcoins had a much worse performance in a tough market.” Andersson also added, “Memecoins are probably taking some of the NFT market share.”

According to CoinGecko data, while NFT sales are declining, meme coins continue to maintain a large trading volume, including $3.4 billion in the last 24 hours.

A large part of this increase is due to the increase in PolitiFi memecoins related to the US presidential elections, while several new popular tokens have been launched on the Ethereum and Solana networks. MAGA (TRUMP) and Pepe (PEPE) are among the memecoins whose prices increased in the second quarter.

The future of the NFT market is being wondered.

NFTs made a somewhat of a comeback with sales exceeding $3 billion in the last quarter of 2023. This development brings hope for the second half of 2024 for NFTs.

The $1.77 billion sales month in December 2023 was the biggest sales month since the decline of NFT writing in June 2022. According to CoinGecko data, top NFT collections such as CryptoPunks and Bored Ape Yacht Clubs have market values of $994.9 million and $345.9 million, respectively.

By comparison, the market values of the two largest Ordinals projects, NodeMonkes and Bitcoin Puppets, are $121.1 million and $94.2 million, respectively.

This article does not contain investment advice or recommendation. Every investment and trading operation involves risk and readers should conduct their own research when making decisions.