NFT Market 2024: A Reset in Numbers, A Reboot in Strategy

The leading global publication on the state of the art market — The Art Market 2025 by Art Basel and UBS, prepared by the analytical firm Art Economics — was released on Tuesday, 8 April, and has already sparked considerable discussion. It’s not just that the report registered a 12% decline in sales of art and collectibles in 2024 — for the first time, digital assets, including NFTs, were excluded from the main findings.

Over the past five years, The Art Market Report may not have incorporated NFT sales into the core market figures, but it consistently devoted a dedicated section to them — typically authored by the report’s own team. In 2025, for the first time, this segment was handed over to an external contributor: NFT18.com, one of the most respected analytical sources in the digital asset space.

Was this decision a deliberate distancing by the traditional art market from NFTs and their surrounding ecosystem — or simply a long-overdue move to entrust coverage to field-specific experts? Either way, the outcome is clear: this year’s NFT section is more insightful and professionally structured, even if the figures themselves paint a sobering picture.

At Fuelarts, we felt it was essential not only to highlight the key points from the report, but to go a step further — to propose a strategic outlook for artists, startups, investors, and everyone who has contributed their time, knowledge, or capital to the NFT space. The following insights were developed in partnership with our long-standing collaborators at BitBasel, pioneers of the digital art revolution in Miami.

Let’s begin with the key data and insights offered by Art Economics and Gauthier Zuppinger (NFT18.com). Despite the overall contraction of the NFT market in 2024, the figures reveal not just a decline but a rebalancing — perhaps even a necessary correction. Here are the core findings:

• Total NFT sales volume dropped to $3.45 billion, down 62.5% from 2023 — now comparable with pre-hype 2019 levels.

• Art-related NFTs accounted for only 6% of the total market, down from 13% last year, equating to approx. $213 million in sales.

• Collectibles (primarily PFPs) continued to dominate, comprising 87% of total volume. Certain projects — notably Cryptopunks — remained resilient, with some pieces still selling above $100,000.

• The number of NFT transactions fell by nearly 50%, from 16.5 million to an estimated 8.4 million.

• Average NFT holding period declined again, now standing at ~15 days, reflecting growing short-term trading behavior.

• Active wallets dropped by 96.7%, highlighting a disengagement trend — or alternatively, a vast number of dormant users.

• Major art-focused NFT platforms such as AsyncArt, MakersPlace, and KnownOrigin either closed or announced closures.

• A key vulnerability surfaced: most NFT assets were stored off-chain or on third-party services like IPFS, meaning that the closure of platforms also meant the loss of access to thousands of artworks.

This paints a picture of contraction, yes — but also of clarity. The noise is fading, and what remains is an outline of where the NFT market must evolve next.

The decline in numbers is not the end — it is a reset. Here are the opportunities hidden within the downturn:

• NFT Art is down, but Collectibles are holding — time to pivot.

Gamified editions, community-driven drops, and purpose-built PFPs present the most resilient formats. Art projects should consider blending storytelling with interactivity to remain competitive.

• Gaming remains stable — let’s gamify the rest.

Utility NFTs and game-linked assets held their ground. This invites traditional NFT creators to explore playable formats, rewards systems, and layered user engagement.

• Wallets declined — but dormant collectors still exist.

The fall in active users should be seen as an opportunity to reactivate ‘sleeping whales’. Campaigns to revitalize lost or inactive assets could inject momentum.

• Marketplaces are closing — but that’s a healthy filter.

The exit of underperforming platforms is a sign of maturing infrastructure. It opens the way for secure, artist-centric, and decentralized marketplaces to emerge.

• Storage gaps must be addressed — urgently.

The fact that many NFTs were lost due to poor storage practices calls for a solution. The future lies in decentralized storage vaults, NFT “guardians,” and tools enabling artists to transfer and preserve assets independently.

• We’re back to 2019 levels — and that’s a good thing.

Without the noise of speculation, creators and investors can return to building value, not hype. This is a chance to lay foundations for long-term trust and utility.

• Investors dislike uncertainty — but they understand cycles.

A down market creates space for thoughtful entry. If platforms offer clear valuation models, transparency, and risk frameworks, investor confidence can be rebuilt — even before the next upswing.

The NFT ecosystem in 2024 is no longer in a speculative sprint — it is entering a new stage of grounded, sustainable growth.

Yes, the numbers are down. The closures are real. But beneath the surface, a selective reset is underway — one that weeds out excess, clarifies real value, and opens the floor to those who are in this space not just for the trend, but for the technology.

We believe NFTs are still in their early chapters. (We may not yet know under what name this technology will be revitalized — whether it’s NFT 2.0, Dynamic NFTs, Generative Tokens, or something entirely new — but when we say NFTs, we refer broadly to digital assets and the evolving rules that govern their market dynamics and ownership logic.) If the last wave was defined by hype, the next will be defined by utility, interoperability, and permanence. It is now the responsibility of creators, developers, investors, and ecosystem builders to reimagine what digital ownership truly means — and how it can serve communities, not just markets.