This week’s email provides details on how the popularity of Pudgy Penguins and Azuki led to a weekly sales volume exceeding $300 million in Ethereum-based non-fungible tokens (NFTs). On the other hand, two individuals, both aged 23, were charged with carrying out multiple rug pulls involving NFT projects and other forms of digital assets. To learn more about the challenges and significant events in the NFT industry in 2024, you can read Cointelegraph’s NFT recap.
Ethereum NFT Sales Hit $771 Million in December
As the demand for NFTs skyrocketed in December, collections built on the Ethereum platform pushed weekly sales volumes above $300 million. Among the Ethereum NFT collections that led the sales charts in the week leading up to December 21 were Pudgy Penguins, LilPudgys, Azuki, Doodles, and CryptoPunks.
In December, NFT sales soared to $678 million in a mere 21 days, propelled by an unexpected volume rise in Ethereum-based digital collections. We surpassed the $562 million record set in November. As of this writing, NFT sales in December had hit $771 million.
Duo Charged in $22 Million NFT Scam
The NFT promoters are facing charges related to a series of rugAmid Rising Fraud and other forms of digital assets. Two California youths, both 23 years old, are facing charges due to an alleged $22 million rug pull incident. The two allegedly stole almost $22 million from investors.
Prosecutors accused Gabriel Hay and Gavin Mayo of providing false information and deceptive plans for multiple NFT and digital asset initiatives. Those who invested in Hay and Mayo’s initiatives claim they abandoned them. An individual who disclosed the pair’s involvement in one NFT initiative asserts that the two also threatened and harassed them.
NFT Sales Reach $8.5 Billion in 2024
Despite difficulties in 2024, NFT integration within the Web3 space persisted. Certain publications published obituaries for NFTs, but holders were busy trading digital treasures. Data tracker CryptoSlam reports that NFTs made over $8.5 billion in sales in 2024.
Although unique buyers rose 62% year over year, NFT sales volumes were lower than in previous years. People purchasing NFTs increased from around 4.6 million in 2023 to 7.5 million in 2024. Even though NFTs were still in circulation, holders experienced a challenging year due to factors such as a declining trend and regulatory obstacles.
Final thoughts
Both opportunities and threats were present in the NFT business in 2024. Despite the fact that Ethereum-based collections like Azuki and Pudgy Penguins generated $771 million in sales in December alone, the business encountered considerable challenges. A $22 million rug pull staged by two individuals exemplifies the surge in Amid Rising Fraud and the continued threats in the area. With a 62% increase in unique purchasers and over $8.5 billion in sales for the year, NFTs continued to prosper despite the difficulties. Despite the industry’s durability, its future will be shaped by continuous regulatory and commercial changes.
FAQs
How did the NFT market perform in 2024 despite challenges?
Despite facing obstacles, the NFT market performed well, with over $8.5 billion in sales. The number of unique buyers increased by 62%, showing strong engagement in the space.
What happened in the $22 million NFT fraud case?
Two individuals, Gabriel Hay and Gavin Mayo, were arrested and charged with fraud for carrying out a string of rug pulls involving NFTs and digital assets, stealing nearly $22 million from investors.
How did the number of NFT buyers change in 2024?
The number of unique NFT buyers rose significantly, increasing from 4.6 million in 2023 to 7.5 million in 2024, marking a 62% year-over-year growth.
What challenges did NFT holders face in 2024?
NFT holders experienced a challenging year due to declining trends in sales volumes, regulatory issues, and concerns over fraudulent activities like rug pulls.
