The yr started on shaky floor for NFTs, with main collections struggling to take care of worth amid a persistently bearish sentiment. Flooring costs dipped throughout the board as buying and selling volumes waned, leaving many to query whether or not the NFT market may rebound.
But, because the yr progressed into the ultimate quarter, new bullishness within the broader cryptocurrency market set the stage for a late-year resurgence. Maintain your expectations in examine. It wasn’t a 2021/2022-like gold rush, however the vibe shift was welcomed by the NFT trustworthy.
Main the cost was Pudgy Penguins, a once-declining assortment that blossomed below new possession beginning in 2022, and hit new all-time highs above $100,000 in anticipation of its token airdrop.
This revitalization got here as NFT market competitors intensified in 2024. Platforms like Magic Eden, Blur, and OpenSea battled for dominance, driving innovation by way of the inclusion of latest blockchains and buying and selling sorts.
From a sluggish begin to an electrifying shut, 2024 reminded the world that the NFT house is as dynamic and unpredictable as ever, fueled by the eagerness of its group and the fixed push for innovation.
Right here’s a few of the high themes from the yr in NFTs in 2024.
Bitcoin Ordinals discover their footing
Although launched initially of 2023, Bitcoin Ordinals—or Bitcoin NFTs, kind of—really discovered their stride this yr because of important infrastructure upgrades and rising adoption. Early challenges, corresponding to the dearth of user-friendly wallets and marketplaces, light as wallets like XVerse and Unisat made holding Ordinals safer and simpler.
In the meantime, buying and selling turned extra seamless as marketplaces like Magic Eden and OXK added crucial assist, drastically enhancing from the chaotic early days which noticed Bitcoin Ordinals traded through spreadsheets in Discord servers.
This infrastructure evolution paved the way in which for standout tasks to seize the highlight, and helped “drive a renaissance in exercise on Bitcoin,” in response to Franklin Templeton.
Bitcoin Puppets and NodeMonkes led the cost, leaping from modest mint costs to peaks of 0.469 Bitcoin ($33,000) and 0.897 Bitcoin ($56,000) respectively, in response to Magic Eden. Whereas costs have since retraced to 0.138 ($14,000) and 0.125 Bitcoin ($12,650) respectively with the value of BTC itself being a lot greater, their impression on the Ordinals ecosystem stays important. And different high-profile tasks like Quantum Cats and Ordinals Maxi Enterprise have equally discovered fervent collector bases.
NFT marketplaces evolve and broaden
This yr has been pivotal for NFT marketplaces, with OpenSea, Magic Eden, and Blur shaping the narrative in distinct methods. Blur retained dominance in Ethereum NFT buying and selling, however its affect waned in the course of the summer time because the NFT bear market dragged on. Plus, its founding crew had its consideration elsewhere, launching Blast, an Ethereum layer-2 community.
Magic Eden, however, stole the highlight with daring improvements in 2024. It led the cost on Bitcoin NFTs and added a decentralized trade for Runes—Bitcoin's model of meme cash—after the halving. Pleasure across the model culminated within the launch of the ME token by the ME Basis, which airdropped greater than $700 million to customers of its protocol.
In the meantime, OpenSea—the main market from the 2021 increase—reemerged as a figurehead within the NFT world in the direction of the tip of the yr. First, CEO Deven Finzer was outspoken in regards to the firm’s willingness to “get up and combat” amid SEC scrutiny of the platform in September.
Shortly thereafter, buzz surrounded {the marketplace} as its OpenSea 2.0 market overhaul started testing, finally fueling questions on a possible future token launch. That hypothesis solely grew as customers reported loyalty applications in the course of the closed beta, and an OpenSea Basis was registered within the Cayman Islands.
Manufacturers come and go
The NFT craze of 2021 noticed main manufacturers like Nike and Adidas rush into the house. However a bear market and fading sentiment on NFTs prompted some giants to retreat in 2024.
Among the many most vital exits got here with Nike’s resolution to close down RTFKT, the style and know-how studio it acquired in 2021 for an undisclosed sum. Previous to Nike’s transfer, Starbucks wound down its Web3 loyalty program, Starbucks Odyssey, which the espresso big operated on the Polygon blockchain.
DraftKings, a significant participant within the fantasy sports activities and sportsbook industries, abruptly discontinued its involvement with NFTs, closing its DraftKings Reignmakers fantasy recreation after a number of years of operation. The transfer got here amid a category motion lawsuit from customers and lingering regulatory questions across the house.
However whereas some main manufacturers took a step again, at the least one made an enormous splash in Web3. McDonald’s jumped right into a notable collab, teaming up with NFT assortment Doodles for a holiday-themed marketing campaign. The collaboration introduced NFT branding into the bodily world with customized vacation espresso cups accessible in McDonald’s places. It signaled that even in a quieter NFT market, some manufacturers nonetheless see potential in inventive integrations.
Going token-crazy
Maybe no narrative has gained as a lot momentum and a focus in the previous couple of months as NFT tasks and their connections to fungible tokens, typically known as utility tokens for his or her ecosystems.
Whereas NFT collections launching or having an related token is just not a brand new phenomenon, the rise of tokenization in 2024—and rising optimism in regards to the U.S. regulatory panorama below President-elect Donald Trump—has put token launches squarely again within the limelight.
Most notably, Pudgy Penguins launched its ecosystem token PENGU on Solana this month. The token, which was eligible to say by greater than 7 million distinctive wallets, offered NFT holders and plenty of different eligible events with a greater than $1.5 billion collective stimulus infusion.
Nevertheless it’s not simply the Pudgy Penguins which have gone the token route in 2024. This yr alone the NFT collections Memeland, Milady, and Mocaverse all dropped tokens to their NFT holders and ecosystem contributors.
All three of these respective tokens have surpassed and maintained market caps of greater than $100 million on the time of writing—and that’s simply the tip of the iceberg.
It’s probably that this narrative will keep some buzz going into 2025, when Azuki is poised to drop its anticipated ANIME token to its ecosystem and different Web3 customers on AnimeChain. Plus, Yuga Labs, the mother or father firm of Bored Ape Yacht Membership is predicted to proceed robust promotion round ApeCoin (APE) amid the current ApeChain launch.
Edited by Andrew Hayward
