tl;dr
In the fourth quarter of 2024, NFT sales volume across Immutable X and Immutable zkEVM increased by 55.3% quarter-over-quarter, rising from $51.2 million to $79.5 million. However, both the average daily sellers and buyers decreased significantly, indicating a shift toward higher average transaction...
In the fourth quarter of 2024, the NFT sales volume across Immutable X and Immutable zkEVM saw a significant increase of 55.3% quarter-over-quarter, rising from $51.2 million to $79.5 million. Despite this surge, there was a decrease in the average daily sellers and buyers, indicating a shift towards higher average transaction values and fewer market participants. The strong demand for Guild of Guardians Heroes and Avatars NFTs drove this sales increase, with most transactions occurring on Immutable zkEVM.
Although there was a surge in NFT sales, Immutable zkEVM experienced a decline in user engagement, possibly due to a slowdown in the GameFi market after the release of popular games in the previous quarter. To address this, Immutable expanded developer access to zkEVM, leading to a 17.0% decrease in average daily transaction fees on Immutable zkEVM.
The total value locked (TVL) in DeFi on Immutable decreased to $13.8 million, likely influenced by a drop in the price of the IMX token. Despite this, TVL measured in IMX showed a positive trend, indicating capital inflows despite the token's decreased USD value. However, Immutable is currently under investigation by the SEC for its 2021 IMX token sales, with ongoing inquiries into the company's practices.
Market participation declined despite the surge in NFT sales, with daily sellers and buyers decreasing by 43.0% and 38.1%, respectively. The sales surge was mainly fueled by the demand for Guild of Guardians NFTs, accounting for over 99% of the total NFT trading volume in the quarter. Most sales took place on Immutable zkEVM, which also saw a substantial rise in average daily NFT sales volume.
Immutable zkEVM also experienced a decrease in user engagement, with average daily transactions and active addresses declining significantly. This trend aligns with the broader GameFi market, indicating a cooldown phase after the previous quarter's high activity. Despite these challenges, there are opportunities for growth and improvement in the NFT space, with potential for increased user engagement and transaction volumes.
While there have been notable developments and challenges in the NFT market, it is essential for platforms like Immutable to navigate regulatory scrutiny effectively and adapt to market changes to ensure continued growth and success.