As we enter 2024, the NFT field will continue to thrive.

Application direction around NFT in 2024:

1. Collaboration and Innovation in Art: Collaboration between artists, brands, and technology companies may further increase to promote innovation in the field of art NFTs. This may include cross-border collaborations with fields such as music, film, and gaming to create more diverse forms of expression for artworks.
2. Digital Splitting of Artworks: Some platforms may explore the model of digitizing and splitting traditional artworks into NFTs. This allows artists and collectors to purchase a portion of the work, encouraging more people to participate in the ownership and investment of artworks.
3. The impact of social media: social media platforms are likely to continue to play an important role in the art NFT market, providing artists with broader exposure opportunities while driving the spread and trading of NFTs.
4. Integration of Virtual Reality (VR) and Augmented Reality (AR): Artists and platforms may make greater use of VR and AR technologies to provide users with richer and more immersive experiences. This integration can make artworks more vivid and interactive in the digital space.
5. Digital identity and traceability: With more and more digital artworks being sold through NFTs, digital identity and artwork traceability have become important topics. The decentralization and transparency of blockchain technology help ensure the authenticity and ownership of artworks.
6. Community governance: Some platforms may adopt a community governance model, allowing NFT holders to participate in decision-making, such as exhibition arrangements, future development directions of artworks, etc.
7. Metaverse Interoperability: In 2023, many brands and creators will begin to launch their own virtual worlds and NFTs, but there is still decentralization among them. By 2024, cross-platform ecosystems will achieve unified digital identity and asset standards, enabling interoperability across different metaverses. This will promote the development of transferability of virtual experiences between different worlds.
8. The Evolution of Game NFTs: Despite the controversy surrounding the “play to make money” model in 2023, game NFTs will gradually evolve into tools for creation, personalization, and governance. Users will be able to prove ownership of digital assets through NFTs, enabling the development of user-generated game metaverse.
9. Social Tokens: Social NFTs allow for the rapid rise of channels that establish exclusive connections with creators. However, in 2024, we may see the NFT hype model begin to shift towards a direct revenue-sharing model, such as tokens like Farcaster and $DEGEN. This “Tips” model may provide creators with a more sustainable way to monetize.

Market Overview

The NFT market has experienced a long winter and is gradually recovering

Evolution of NFTs: Key History and Milestones

According to the data, the market value and trading volume have both shown a downward trend compared to the previous year. The market value experienced a significant decline, with a decrease of 41.79%, reaching a historical low of 3.3 million ETH. The peak of trading activity occurred on February 20th, when the trading volume reached the highest level of the year at 240,000 ETH. However, this heat did not last throughout the year. The updates and releases of some highly anticipated games such as Legends of the Mara, new series Azuki Elementals, and DeGods failed to meet the community’s expectations, leading to a decline in market interest. Therefore, trading volume remained low in the middle of the year. Nevertheless, there were signs of a market rebound starting from November.

Blue Chip Index — Continued Blue Chip Advantage

When 2023 began, the expected value of blue-chip NFTs experienced a downward adjustment of about 70%, and overall performance was suppressed. However, by the end of 2023, some lasting signs of resilience began to emerge, and the index rebounded from 4,488 points at the end of October, eventually rising to 5,000 points at the end of the year. This reflects the continued demand for high-quality collectibles.

Looking ahead to 2024, a leading group in the NFT bull market is Pudgy Penguins. The market may be unstable in speculative behavior, accompanied by temporary fluctuations.

According to in-depth research on NFT trading volume in 2023, blue-chip collectibles still dominate the market. Only Bored Ape Yacht Club accounts for 10.45% of the overall trading volume, with Mutant Ape Yacht Club and Azuki ranking second and third respectively. The total trading volume of the top 9 collectibles accounts for nearly 50% of the overall trading volume. Despite the emergence of new collectibles, data shows that the most reliable blue-chip NFTs still dominate most trading activities.

Category — PFP is still the key to NFT

The chart shows that PFP is still the cornerstone of NFT applications, with a total market value of about 4 million ETH. In contrast, the art category has surpassed games, collectibles, and practical types, and has risen in the NFT field, with a market value of nearly 500 million ETH. This surge may be due to the progress of AI greatly driving the market. In addition, since last year, the domain category has become more prominent in the NFT field.

PFP will continue to be the cornerstone of the NFT industry, providing a foundation for expanding the influence of various NFT collectibles. Notable developments include Yuga Labs launching new games, innovative collectibles and elements launched by Azuki and DeGods, and the collaboration between Pudgy Penguins and Walmart. The integration of AI technology has injected new momentum into the industry, promoting the increase of video and generated art NFTs. Looking ahead to 2024, we expect more innovative efforts to further activate the market.

The liquidity of the gaming category is the highest, rising by about 380%. NFT publishing of classic games such as OVERWORLD INCARNA and Pixelmon further activated the market. The liquidity of the art and land categories is also significant, both exceeding other categories by 200%.

Holders and traders — from volatile markets to calm markets

With the end of 2023, the NFT market showed less volatility compared to last year. The first four months showed an increase in market activity level. According to NFTGo data, the overall market experienced a decline in 2023. The number of active traders decreased significantly, by 47.51% compared to 2022. Despite the decline in trading activity, the number of NFT holders has grown significantly, increasing by 132.44% compared to last year, reaching 6.42 million people.

Ratio of number of sellers per day to number of buyers in 2023

According to the data, the daily buyer-to-seller ratio in 2023 fluctuates between 0.52 and 1.02, with an overall average ratio of 0.85, indicating a relatively balanced market between buyers and sellers. The monthly average ratio in September reached its highest value of 0.92, indicating the upcoming “Upjan”.

Solana and BTC — Rising Markets in 2024

The overall trading volume and number of traders have grown significantly within a year, demonstrating the growing interest in Solana NFTs. The total weekly trading volume increased from about $1.50 million in early January to over $1.10 million by the end of December, and the number of active traders increased from about 80,000 to over 110,000 during the same period.

The number of unique collectibles traded has also grown over time, from about 5,000 in January to over 15,000 in December, indicating that the diversity of NFTs traded on Solana continues to expand.

In 2023, Ordinals revolutionized the industry with its innovative inscription concept and attracted widespread attention from investors. The total number of inscriptions has exceeded 56 million as of January 2024. With the market’s support for Ordinals and BRC20, the market has experienced significant growth. Although the number of inscriptions temporarily decreased in October, the launch of UniSat’s Brc20-swap has promoted the market’s recovery.

With the development of the market and the introduction of BRC-20, Ordinal has gradually integrated more text content, especially JSON files. This feature eliminates the previous file format restrictions, allowing text information to be embedded in BTC. With the help of Indexer, BRC-20 can simulate functions similar to ERC-20, including coin minting and asset transfer. This development has made text one of the most popular types in Ordinals, with nearly 90% of daily inscriptions consisting of text inscriptions, and the number of text inscriptions has exceeded 400,000.

The development of Ordinals is closely related to the progress of the market. UniSat plays an important role in this process, marking an important milestone. Over time, major exchanges such as OKX, Huobi, and Binance have started to include the $ORDI token in trading, which has significantly increased trading volume. Since November last year, OKX has dominated the market trading volume. As of January 2024, more than $1.80 billion in transactions have been completed, demonstrating the strong growth of Ordinals and the increasing market acceptance.

NFT/ETH Ratio — NFT Market Shows Unique Resilience

Since the beginning of 2023, Ethereum has been at a historical low, resulting in the bottom price of NFTs remaining at a relatively low level. It is particularly noteworthy that the NFT/ETH market value ratio reached its peak in February, which coincided with the lowest price of Ethereum at that time, which was $1,429. This indicates that although the NFT market is generally correlated with the Ethereum market, the NFT field reflects its unique stability.

Throughout 2023, the market value ratio of NFT/ETH showed a downward trend, dropping from about 0.06 to below 0.04. This indicates that despite the large fluctuations in Ethereum prices, the NFT market still maintains a relatively stable transaction value ratio, demonstrating a certain degree of resistance and independence in the NFT field against price fluctuations.

Pearson correlation coefficient between Ethereum and NFT market in 2023

In short, the correlation coefficient between the two markets is about 0.6 in 2023. The lower correlation occurs in Q1 and Q2, when the Ethereum market is in a downturn. In Q3 and Q4 of 2023, the correlation coefficient remains stable, above 0.8, indicating that NFTs also tend to show strong trading volume in more active Ethereum markets.

NFTFi Trends — DeGods and MAYC are the Most Stable

At the end of June, deposits surged due to increased volatility in the cryptocurrency market. If growth continues at the rate of 2023, we can expect an average weekly deposit amount in the range of 4,000–5,000 in 2024. Some potential peaks may reach 6,000 + deposits per week. Blue-chip NFTs should continue to be the preferred choice for deposits.

Summarize the development prospects of TreasureNFT in 2024

In 2024, the development trend of the NFT market is still highly anticipated, and TreasureNFT, as a prominent representative in this field, also has a highly anticipated development prospect.

Firstly, TreasureNFT’s unremitting efforts in technological innovation will enable it to occupy an important position in the NFT industry. By continuously improving trading algorithms and introducing advanced technology, TreasureNFT is expected to provide a more efficient, secure, and user-friendly trading experience. This will help attract more customer engagement in NFT trading and lay a solid foundation for TreasureNFT to maintain its competitive advantage in the market.

Secondly, TreasureNFT’s efforts in platform ecosystem construction will provide users with a broader experience. By supporting diversified digital art transactions and encouraging deeper interaction between creators and users, TreasureNFT is expected to create an open and inclusive NFT ecosystem. The construction of this ecosystem will help attract more high-quality content creators and collectors, playing a key role in the prosperity of the TreasureNFT platform.

In addition, TreasureNFT plans to further expand its market influence through cooperation with other blockchain projects and technologies. By adopting cross-chain technology and establishing strategic partnerships, TreasureNFT is expected to expand its user base and gain wider recognition globally.

Finally, the development of TreasureNFT in Emerging Markets is also a key direction for its development. By exploring the application of NFT technology in fields such as virtual reality, gaming, and online experience, TreasureNFT is expected to explore more innovative application scenarios and further expand the potential of NFT. Especially in the layout of multiple asset categories such as metaverse assets, physical IP assets, and encrypted game assets, TreasureNFT will become a diversified and world-class NFT trading market.

Overall, TreasureNFT has a vibrant development outlook in 2024. Through technological innovation, ecosystem construction, cooperation expansion, and the development of Emerging Markets, it is expected to achieve more significant achievements in the NFT field.