The NFT market experienced a significant slowdown in the second quarter. In fact, a 44% drop in sales compared to the previous quarter was observed.
This decline occurs in a context of a struggling cryptocurrency market, characterized by a 15% drop in Bitcoin prices. Additionally, even poorer performances for many altcoins were also observed.
NFTs Losing Momentum to Memecoins
According to industry experts, two main factors explain this decline. The first concerns the rise of memecoins. This type of cryptocurrency is often based on jokes or references to popular culture.
These have seen growing popularity in recent months. They have notably attracted some of the attention and investments that were previously focused on NFTs.
The second factor is the general slowdown of the cryptocurrency market. The drop in cryptocurrency prices has indeed had a negative impact on the entire market. Consequently, the NFT market has also been affected.
Memecoins: The New Kings of Speculation?
Despite the slowdown in the NFT market, memecoins continue to generate significant interest. In recent days, $3.4 billion has been traded on these assets, according to data from the leading cryptocurrency exchanges. This frenzy is partly explained by the emergence of new memecoins related to the US presidential election. The election will take place in November, and the campaigns of the two candidates are currently highly publicized, especially on social media.
The arrival of digital tokens associated with celebrities is another factor that explains this trend. Among the most popular memecoins of the second quarter are MAGA, associated with candidate Donald Trump, and Pepe.
It remains to be seen whether the rise of memecoins and the decline of NFTs constitute a lasting trend or if it is a temporary phenomenon.
Indeed, time will tell if investors will return to NFTs once the cryptocurrency market stabilizes.
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