Nfts
NFT Market, Q2 2024 Maintains an Upward Trajectory: 4 Billion Transactions
THE NFT The market continues to maintain the growth recorded in 2024. In fact, a trading volume of $4 billion was recorded in the second quarter of 2024, up 3.7% from the first quarter of 2024. The blockchain sector has performed poorly in terms of security. Despite the generally positive market outlook, there was actually a loss of $430 million due to exploits and hacks. This is an increase of 5% from last quarter.
Trading volume of 4 billion
According to data reported by DappRadarIn Q2 2024, NFT trading volume reached $4 billion, up 3.7% from the previous quarter of $3.9 billion. Additionally, the market saw 14.9 million NFTs sold, up 28% from the previous quarter. Q2 2024 was the best-performing quarter since Q1 2023, outperforming, albeit slightly.
Blur continues to lead the NFT market with a 31% market share, although this represents a 50% decrease from last quarter’s performance. In second place is still Magic Eden, which has had incredible success with BTC Ordinals and increased its dominance from 17% to 22%. OpenSea ranks third in terms of trading volume and dominance, but is the most dominant NFT marketplace in terms of sales with a 12% market share.
The top 5 NFT collections by trading volume this quarter remain largely unchanged from the previous quarter, with the notable exceptions of Runestone and fantasy.top. Both collections saw incredible success and popularity in Q2 2024.
$430 Million Lost to Exploits and Hacks
Exploits and cyberattacks in the Web3 industry unfortunately continue to be a major concern. In fact, in Q2 2024, the industry reported $430 million in losses due to security breaches, a 5% increase from the previous quarter. Ethereum and BNB Chain were the most affected blockchainseach responsible for approximately 28% of the total incidents. Solana was involved in approximately 8% of the incidents, while the remaining 36% occurred on other blockchains, including Polygon and Arbitrum. While access control issues only accounted for 23% of the incidents, they resulted in a substantial loss of 75% of the total funds, highlighting the severe financial impact. This figure highlights that while access control issues are less common, they are significantly more financially damaging.
In the second quarter of 2024, five major security incidents took place. The first was a hacker attack on DMM Bitcoin, a centralized cryptocurrency exchange based in Japan. On May 31, it lost $305 million in the largest blockchain theft since December 2022. On May 20, Gala Games was involved: a hacker exploited an access control vulnerability in the GALA token contract, minted 5 billion GALA tokens and sold 592 million of them for $21.8 million in ETH, causing a 20% price drop. On June 4, Lykke, a centralized cryptocurrency exchange based in Switzerland, suspended withdrawals after losing more than $22 million in a security breach. On May 14, however, Sonne Finance on Optimism was exploited via a known Compound v2 fork attack, resulting in a loss of $20 million. Finally, on June 13, Holograph, an NFT protocol, suffered a $14.4 million attack when a former developer exploited a smart contract vulnerability to create 1 billion HLG tokens. These incidents highlight the importance of ensuring the security of exchanges and being cautious when using blockchain. Caution and enhanced security should always be exercised when using blockchain technology. For more information on these and other security issues, visit the REKT database.