NFT Market Faces Sharp Decline
From January 20 to January 27, 2024, there was a significant decline in the sales volume of non-fungible tokens (NFTs), with a plunge of 21.25% compared to the previous week. Both Ethereum and Bitcoin, the leading blockchains in seven-day sales, experienced substantial decreases, ranging from 28.78% to 12.62%, respectively.
Steepest Decline in 2024
At the beginning of 2024, NFT sales dipped by 1.31%, falling below the figures from the previous week in 2023. The subsequent week saw a marginal rise in NFT sales of approximately 0.05%, but the last week experienced a 5.05% drop in digital collectible sales.
This week marked the steepest decline in 2024, with sales plunging over 21% compared to the previous seven days. According to metrics from cryptoslam.io, the total sales amounted to $228,327,660.
Top Performing Blockchains
Bitcoin experienced a 12.62% week-over-week drop, with $55.92 million in sales over the same seven-day period. Solana secured the third rank, recording $53.69 million in sales, which is a decrease of 11.85%. Polygon’s NFT sales claimed the fourth position, amounting to $15.66 million, yet experienced a 36.40% drop. In the fifth spot, Avalanche garnered $7.98 million in sales, with a notable 41.25% decline in its NFT market.
All five of the top blockchains leading the week’s sales saw double-digit losses. Among the top ten this week, Ronin, notably the blockchain supporting Axie Infinity, witnessed a significant 209.09% surge, achieving $1.76 million in NFT sales.
High-Ranking NFT Collections and Top Sales
In terms of unique digital collectible collections, the Cryptopunks series clinched the highest position in sales this week. Cryptopunks amassed $13.67 million in sales during the past seven days, marking an increase of 32.23% from the previous week. Bitcoin’s Uncategorized Ordinals experienced $9 million in sales, witnessing a 3.75% decline from the week prior.
In the third spot, Solana’s Froganas reported $7.04 million in sales, a significant increase of 420.77% compared to last week. Occupying the fourth rank, Solana’s Cryptoundeads achieved $6.75 million in sales, yet faced a 58.82% decrease. In the fifth position, Avalanche’s Dokyo NFT collection registered $5.85 million in sales, experiencing a 33.70% drop in sales volume from the previous week.
The highest-priced digital collectible of the past week was Cryptopunk #6,940, which sold for $507,618. BNB’s Lockdealnft #18,858 realized a sale of $147,157, while an Axie Infinity NFT commanded a price of $143,559.
Overall, sales of blockchain-based digital collectibles have faced a challenging period throughout 2022 and most of 2023, with a downturn in NFT sales. Bitcoin's entry into the NFT sales arena initially boosted overall sales, but BTC-focused NFT sales have not only decreased this week but also experienced a 28.15% drop the week before.
NFTs based on Solana and Polygon showed an increase in the latter part of 2023, yet they have recently encountered modest falls in their overall digital collectible sales volume. Whether this downward trend in NFT sales continues or a resurgence occurs remains to be seen.
What are your thoughts on this week’s NFT sales action? Share your opinions in the comments section below.
Frequently Asked Questions
Can the government steal your gold?
Because you have it, the government can't take it. You have earned it by working hard for it. It belongs entirely to you. This rule could be broken by exceptions. You can lose your gold if you have been convicted for fraud against the federal governments. You can also lose precious metals if you owe taxes. You can keep your gold even if your taxes are not paid.
What Is a Precious Metal IRA?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These rare metals are often called “precious” as they are very difficult to find and highly valuable. They are great investments for your money, and they can protect you from inflation or economic instability.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
With a precious metal IRA, you invest in bullion directly rather than purchasing shares of stock. This ensures that you will receive dividends each and every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, your gains are subject to a small tax. You can also access your funds whenever it suits you.
Is gold a good choice for an investment IRA?
Anyone who is looking to save money can make gold an excellent investment. You can also diversify your portfolio by investing in gold. There is much more to gold than meets your eye.
It has been used throughout the history of currency and remains a popular payment method. It is often called “the most ancient currency in the universe.”
But unlike paper currencies, which governments create, gold is mined out of the earth. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand for gold determine the price of gold. If the economy is strong, people will spend more money which means less people can mine gold. The value of gold rises as a consequence.
On the other hand, people will save cash when the economy slows and not spend it. This results in more gold being produced, which drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you invest in gold, you'll benefit whenever the economy grows.
Additionally, you'll earn interest on your investments which will help you grow your wealth. If gold's value falls, you don't have to lose any of your investments.
What precious metal is best for investing?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has been considered a safe investment, it is not always the most lucrative. If you are looking for quick profits, gold might not be the right investment. If you have the patience to wait, then you might consider investing in silver.
If you don’t want to be rich fast, gold might be the right choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement plans
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's not exactly legal – WSJ
The History of Gold as an Asset
From the ancient days to the early 20th Century, gold was a common currency. It was popular because of its purity, divisibility. uniformity. scarcity and beauty. Aside from its inherent value, it could be traded internationally. There were different measures and weights for gold, as there was no standard to measure it. For example, in England, one pound sterling was equal to 24 carats of silver; in France, one livre tournois was equal to 25 carats of gold; in Germany, one mark was equal to 28 carats of gold; etc.
In the 1860s the United States began issuing American currency made up 90% copper (10% zinc) and 0.942 gold (0.942 pure). This led to a decrease of demand for foreign currencies which in turn caused their prices to rise. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They decided to return some of the gold they had left to Europe.
Many European countries began accepting gold in exchange for the dollar because they did not trust it. Many European countries started to accept paper money as a substitute for gold after World War I. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
By: Jamie Redman
Title: The Decline of NFT Sales in January 2024
Sourced From: news.bitcoin.com/2024-sees-steepest-weekly-plunge-in-nft-sales-5-major-blockchains-register-double-digit-losses/
Published Date: Sun, 28 Jan 2024 19:00:53 +0000