NFTs Faced Their Worst Year Since 2020 as Trading Volumes Plunged

Despite challenges like rising token prices and market volatility, certain sectors still showed resilience. Pudgy Penguins specifically performed relatively well, and achieved impressive growth through real-world utility initiatives. On the bright side, new innovations in NFT use cases emerged globally. Indian Railways introduced NFT train tickets for the MahaKumbh Mela and South Korea’s Jeju Island is planning NFT-based tourist cards to attract younger visitors. Additionally, Transak partnered with Ronin Network to streamline NFT purchases via fiat.

2024: NFT Market’s Toughest Year Since 2020

Last year, the non-fungible token (NFT) market experienced its worst performance since 2020, according to DappRadar’s 2024 Dapp Industry Report. Trading volumes fell by 19% compared to 2023, reaching $13.7 billion. Sales counts also declined by 18% to just under 50 million. 

Yearly NFT trading volume and sales count (Source: DappRadar)

The market’s downturn was riddled by volatility and increasing token prices, which made NFTs generally more expensive in 2024. Despite a promising start in Q1, with trading volumes rising 4% year-on-year to $5.3 billion, momentum fizzled out later in the year as volumes dropped to $1.5 billion in Q3 before partially rebounding to $2.7 billion in Q4.

The decline in NFT market performance took place alongside a revitalized crypto market, where Bitcoin surged by more than 125% over the year. However, this recovery in the broader cryptocurrency sector did not translate into a similar resurgence for NFTs. However, Ethereum (ETH), which is a key currency in the NFT ecosystem, also saw rising prices and contributed to the increased cost of NFTs.

Ethereum’s price action over the past year (Source: CoinMarketCap)

Gaming-related NFTs held their dominance in the space. Epic Games’ Gods Unchained led in sales volume at $152 million, despite a 27% decline from the previous year. Pudgy Penguins emerged as the top NFT collection overall after recording a 140% increase in trading volume to $786 million and a 114% rise in its floor price. However, its sales count dropped by 44%. The collection’s success was boosted by real-world utility through the launch of plush toys in major retailers like Walmart and Selfridges, along with a mobile game and sports partnerships.

Top NFT collections by volume (Source: DappRadar)

The report pointed out that NFTs with tangible applications performed especially well. 

Indian Railways Introduces NFT Tickets for MahaKumbh

On the bright side, there are some developments that could give the NFT market a nice boost. Indian Railways is set to issue NFT-based train tickets for passengers traveling to the MahaKumbh Mela, which is a major Hindu festival held once every 144 years. 

This initiative was announced on Jan. 13, and it is a collaboration between the Indian Railway Catering and Tourism Corporation (IRCTC) and blockchain firm Chaincode Consulting. The NFTs will be minted on the Polygon blockchain and distributed through the NFTtrace platform.

The Polygon blockchain was selected for its scalability, low gas fees, and environmental sustainability. Chaincode Consulting’s CEO, Alok Gupta, believes that the integration of blockchain technology complements the spiritual and traditional aspects of the MahaKumbh while introducing a new level of engagement through NFTs. 

IRCTC, which books approximately 1.2 million train tickets daily, plans to use this NFT initiative to attract global participants to the MahaKumbh. Aishwary Gupta, head of payments and fintech at Polygon Labs, praised the initiative’s potential success due to Polygon’s history of delivering cost-effective and high-throughput solutions.

The MahaKumbh Mela is listed as an Intangible Cultural Heritage of Humanity by UNESCO and has drawn global attention. Some past attendees even included celebrities like Richard Gere, David Lynch, and the Dalai Lama. Laurene Jobs, widow of Steve Jobs, is also slated to attend the 2025 pilgrimage.

Indian Railways previously experimented with blockchain-based ticketing, including an NFT ticketing drive for the Holi festival in March of 2024. These tickets were described as more than digital souvenirs, and served as a celebration of India’s cultural heritage. Blockchain technology has also been utilized to maintain ticket purchase records and implement smart contracts for traceability. 

Jeju Island Launches NFT Tourist Cards

Jeju Island, South Korea’s largest and self-governing province, is also planning to introduce NFT-based tourist cards to attract younger visitors. According to a report by the Maeil Business Newspaper, these digital tourism cards are set to launch in the second half of 2025. The main goal of these NFTs will be to engage millennials and Generation Z with added perks like travel subsidies and discounts on popular attractions. A trial phase will precede the full rollout to refine the initiative.

Jeju Island is most well known for its scenic hiking trails and resorts, which makes it a key tourist hotspot. The island has a history of embracing blockchain technology after previously implementing a blockchain-based COVID-19 contact tracing app in 2021. 

Officials on Jeju Island have been exploring blockchain applications in tourism and other industries, like fishing, since early 2024. This initiative is also part of South Korea’s broader embrace of cryptocurrency, which became very evident by a surge in crypto users. By November of 2024, the number of South Korean crypto users rose to 15.6 million.

Transak and Ronin Partner to Simplify NFT Purchases

Transak, a global cryptocurrency on-ramp, partnered with the Ronin Network, a gaming-centric blockchain developed by Sky Mavis, to streamline fiat-to-crypto transactions and NFT purchases. The collaboration will allow gamers to access Ronin’s ecosystem by using familiar payment methods, including credit cards and Apple Pay, and supports direct fiat-to-NFT purchases through Transak’s NFT Checkout service. This integration allows users to buy Ronin’s native RON token, USD Coin (USDC), Wrapped Ether (WETH), and Smooth Love Potion (SLP) by using various localized payment options.

A central component of the partnership is the integration of Transak’s NFT Checkout service into Mavis Market, which is Ronin’s official NFT marketplace. The service simplifies the process of buying digital assets by allowing users to buy NFTs directly with fiat currency and bypassing the need for pre-purchased cryptocurrencies. It also supports multiple NFT purchases in a single transaction with buying limits as low as $0.01.

Looking ahead to 2025, Transak expects blockchain gaming platforms to further reduce complexities and allow gamers to interact with blockchain games seamlessly without managing separate accounts or handling gas fees directly. The company plans to expand its support to new blockchains based on user and ecosystem demand. It also plans to continue its mission to tackle blockchain complexities.

However, Transak has recently faced some challenges, including a data breach in October of 2024. During the breach, about 92,000 users were affected. It was caused by a phishing attack on an employee’s laptop that exposed sensitive user information, including names, dates of birth, identification documents, and selfies. Despite this setback, Transak is still very much focused on its goal of driving adoption through simplified blockchain solutions.