Despite the challenges and fluctuations faced by the NFT Industry in 2024, NFTs (non-fungible tokens) continue to occupy an indispensable position in the Web3 domain. Although media and Analysts often declare that NFTs are 'dead', market data shows that the unique value and market demand for NFTs continue to grow. According to data tracker CryptoSlam, the sales of NFTs in 2024 are approximately $8.5 billion, which is lower than the peaks of previous years, but the number of buyers has seen a 62% increase, reaching 7.5 million. This growth indicates that demand in the NFT market remains strong in some respects.

Challenges and Sluggishness in the NFT Market in 2024.

The turbulence in the NFT market began in early 2024 when the social media platform X (formerly Twitter) announced the cancellation of support for NFTs, which disappointed many NFT projects and their Holders. Some Community members regarded this move as a 'bottom line' for NFTs, considering it another significant setback for the industry's development. In the same month, the renowned video game retailer GameStop also announced the closure of its NFT market, citing the unclear regulatory environment in the USA. Moreover, the American gambling company DraftKings also closed its NFT business due to 'legal developments.'

In the same year, the blockchain platform Immutable and the cryptocurrency Exchange Kraken also withdrew from the NFT market. The most shocking news came from Nike's NFT project RTFKT, which announced it would cease Operation in January 2025. This series of exits marks the difficulties faced by the NFT Industry, and the SEC's (Securities and Exchange Commission) focus on NFT projects further exacerbated this uncertainty.

SEC's Regulatory Pressure: Challenges for NFT Projects.

In August 2024, the SEC issued a Wells notice to the NFT platform OpenSea, alleging that NFTs on its platform might constitute unregistered securities. A Wells notice indicates that regulators believe a project may violate securities laws, making compliance issues in the NFT industry a hot topic. NFT creators and platforms have expressed concerns about regulatory pressure, believing that these actions may limit innovation and have negative impacts on artists and creators.

In December, another NFT platform CyberKongz also received a Wells notice from the SEC, alleging that its Genesis Kongz NFTs sold in 2021 violated securities laws. These regulatory challenges have subjected the NFT industry to unprecedented pressure in 2024.

The Recovery of the NFT Market and Future Potential.

Despite the NFT market experiencing seven months of stagnation in 2024, signs of recovery began to emerge in the second half of the year. In October, market sales increased by 18%, reaching 0.356 billion dollars, and in November, it further climbed to 0.562 billion dollars, marking the highest level in six months. Particularly on the Solana platform, NFT sales surpassed 6 billion dollars, demonstrating strong performance of the NFT market on certain blockchains.

The future of the NFT industry in 2025 is full of uncertainties. Some industry experts believe that NFT technology will extend beyond digital art and collectibles to practical applications such as authentication, property records, and medical health documents. Jana Bertram, the strategic director of the RARI Foundation, stated in an interview that the potential of NFTs has not yet been fully explored, and with the advancement of technology and expansion of applications, NFTs could enter a new phase of growth.

Additionally, OKX's Global Chief Business Officer Lennix Lai pointed out that the trading volume of Bitcoin NFTs (Ordinals) increased by 55% from October to November 2024, indicating the recovery and expansion potential of the Bitcoin NFT market. As more creators publish their works on the Bitcoin blockchain, the prospects for NFTs on Bitcoin are increasingly promising.

2025 NFT Market Outlook: Growth and Innovation Coexist.

Although the NFT market experienced a brief downturn, the future of NFTs remains full of opportunities with the expansion of the Web3 space and the growth of the crypto market. Yat Siu, the executive chairman of Animoca Brands, stated that as the crypto market grows, the NFT market is expected to revitalize in the coming years. He noted that with the further development of the crypto market, NFT trading volume could significantly increase, with the total Market Cap of the entire crypto market expected to reach 10 trillion dollars by 2026, benefiting the NFT market as well.

Conclusion

Although the NFT industry faced significant challenges and fluctuations in 2024, its unique value and potential continue to attract the attention of many investors and creators. With technological advancements and market recovery, NFTs may return to the market in a new light, particularly on innovative applications on platforms like Bitcoin and Solana. For NFT advocates, 2025 could be an era filled with growth and innovation.