Tech
NFT sales fell 44% during crypto market crash, while meme coins soared in Q2 2024
Meme coins have seen a massive influx of coins dedicated to celebrity, sports, political and animal memes in the second quarter of 2024, despite the broader cryptocurrency market crisis.
In particular, this broader downtrend in the cryptocurrency market has affected NFTs, with sales volume falling to $2.32 billion in the second quarter of 2024, down 44% from $4.14 billion in the first quarter.
This market-wide downturn coincides with Bitcoin’s 15% decline from its March 14 all-time high of $73,750. Major altcoins followed a similar path, while meme coins appeared unscathed.
Meme Coins Are Taking Market Share From the NFT Sector
The surge in meme coins may have NFT sales affectedbecause it took away investors’ mind share from the product. For context, mind share is the popularity of a particular product among consumers and investors.
While NFT sales are declining, meme coins are now in the spotlight with an increase in their trading volume. CoinGecko data reveals that the meme coin trading volume has reached $3.6 billion in the last 24 hours.
The majority of the trading volume comes from PolitiFi meme coins, which have seen a surge in popularity amid the anticipation of the 2024 US presidential election. Additionally, the Solana and Ethereum networks have also seen a spike in new celebrity meme tokens.
Among the coins that saw significant price increases in Q2 were the frog-themed meme coin Pepe and the Donald Trump-related token MAGA (TRUMP). PEPE recorded new all-time highs in May, with the highest point of $0.00001718 reached on May 27.
Similarly, MAGA’s price skyrocketed following Trump’s pro-crypto statements during his campaign, hitting a new all-time high of $17.52 on June 1. MAGA has fallen nearly 63% from its new all-time high.
Another meme coin that saw a strong surge in Q2 2024 is Gamestop GME, which hit an all-time high of $0.03207 on June 7, before dropping 75% to $0.0077.
Billionaire Mark Cuban’s Wallet Drops NFTs After Two Years of Inactivity
Amid the decline in NFT sales, a cryptocurrency wallet linked to billionaire Mark Cuban, which had been dormant for nearly two years, has been dumping some NFTs. Its last sale before going dormant was on January 13, 2022, when Cuban sold a Roc Aero Pitch Deck NFT for $33.73.
However, the wallet address is marked markcuban.eth recently sold Pudgy Penguin along with others like Euler Beats Genesis and Wrapped MoonCats.
In June, the billionaire sold around 14 NFTs with an estimated value of $38,533. The Pudgy Penguin NFT, valued at $39,578, is the most expensive NFT on his sales list. The most recent NFT sales have been in the $22-$1,800 price range.
Meanwhile, the billionaire still plans to sell other high-value NFTs in his collection. He posted his NFT hashtag #MFFL, worth 15 Ether, for sale with an estimated value of $50,000.
Cuban also listed his BibleNFT, Deuteronomy 25:4, for 5 ETH (about $16,000). If he sells both NFTs, his total sales will rise to $100,000.
While the motive behind Cuban’s NFT sales is unknown, it coincides with a security breach of his Gmail account. Cuban revealed that his Gmail account was compromised after he received a scam call. However, with the help of Google, Cuban recovered his Gmail Accounts June 25th.
Also, Mark Cuban lost almost $900,000 to scammers in 2023. So, the recent NFT sales could probably be preventative measures. However, given the growing interest in meme coinsThe sell-off may have prompted other investors to sell off their NFTs.
This is not the first drop in sales in the NFT market. Marker data reveals that NFTs suffered a similar decline in 2023 before recovering and recording over $3 billion in sales in the last quarter.
Disclaimer: The views expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile and high-risk asset class.
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