The non-fungible token market has witnessed explosive growth, followed by significant downturns over the past few years. Despite the initial hype and heavy investment, it is now grappling with severe instability.
This brief lifespan highlights the highly speculative environment of NFTs, where swift price swings and the allure of digital assets often fail to sustain long-term worth.“The data paints a clear picture: the NFT market previously praised as the future of digital ownership and investment, is encountering significant difficulties.
On the other hand, the Pudgy Penguins collection highlights the risks in the market, with holders experiencing a drastic 97% loss, making it the least profitable collection so far.From a period when OpenSea held a monopoly during the NFT bull run, the market evolved into a duopoly between it and Blur, and by 2024, it became more of an oligopoly with increased competition and diversity among marketplaces.
Tensor also experienced significant growth, with its market share rising from 0.1% to 12.1% as monthly NFT trading volume surged from $1.36 million to $215.57 million, allowing Tensor to surpass its close competitor Magic Eden for the first time in December 2023.