Immutable X and zkEVM NFT Sales Surge 55% in Q4 2024, But Market Participation Declines
In the fourth quarter of 2024, Immutable X and its zkEVM solution experienced a remarkable increase of 55.3% in total NFT sales volume, rising from $51.2 million to $79.5 million, according to an analysis by Messari. This surge, however, contrasts starkly with a notable decline in market participation, as both daily sellers and buyers plummeted significantly. Daily sellers dropped by 43%, decreasing from approximately 1,500 to 880, while daily buyers fell by 38.1%, from about 1,300 to 800. This trend indicates a shift towards higher transaction values amidst dwindling market activity.
The substantial sales increase was fueled predominantly by growing interest in Guild of Guardians Heroes and Avatars NFTs, which contributed over 99% to the overall NFT trading volume during the quarter. Predominantly traded on Immutable zkEVM, the Guild of Guardians NFTs catapulted the average daily NFT sales volume on this platform to jump 73.3%, from roughly $484,000 in Q3 to $839,000 in Q4. As a result, Immutable zkEVM commanded more than 97% of total sales volume across both chains.
Despite these sales figures, user engagement on Immutable zkEVM declined following record highs in Q3. Average daily transactions witnessed a 21.1% decrease, plummeting from about 595,000 in Q3 to around 469,000 in Q4. A corresponding drop in user activity was noted as active addresses fell by 23.8%, from 267,000 to 204,000, with new addresses declining by 29.8% to roughly 32,000 by the end of the quarter. This downturn reflects a broader cooling trend in the GameFi sector, likely a result of the market’s adjustment after the Q3 surge driven by successful game releases like Guild of Guardians and Immortal Rising 2.
In a bid to stimulate developer activity, Immutable had progressively broadened access to its zkEVM throughout the year. A significant step occurred in October when the platform removed its deployer allowlist, paving the way for permissionless deployment of smart contracts and applications. This strategic adjustment is expected to foster a more vibrant developer ecosystem on zkEVM.
Transaction fees also exhibited fluctuations during this period, with average daily fees on Immutable zkEVM declining by 17.0%, dropping from approximately 574 IMX to 477 IMX. This reduction in transaction fees was attributed to lower network congestion stemming from diminished user activity. To enhance user experience, Immutable introduced a policy covering all gas fees for holders of the Immutable Passport, effectively eliminating gas fees for players and thereby lowering transaction friction.
By the conclusion of 2024, the total value locked (TVL) within Immutable’s decentralized finance ecosystem fell to $13.8 million, largely influenced by a quarterly decline in the IMX token’s price, which diminished the USD value of locked assets. Nevertheless, the TVL measured in IMX demonstrated an upward trend, boosting by almost 17% quarter-over-quarter to 10.33 million IMX, suggesting that capital inflows might have spurred this increase despite the decrease in USD value.
Compounding these challenges, on November 1, 2024, Immutable disclosed that it had received a Wells notice from the U.S. Securities and Exchange Commission regarding its 2021 IMX token sales. The company voiced concerns about the lack of prior communication and insufficient details associated with the notice. The timing of this enforcement action, coinciding with Immutable’s first direct interaction with the SEC, raised questions about procedural transparency.
As the landscape evolves into 2025, the SEC has concluded several investigations into various crypto platforms, including OpenSea, Gemini, and Uniswap, with no enforcement actions being taken. However, inquiries concerning Immutable and other platforms like Crypto.com remain ongoing, indicating that regulatory scrutiny in the crypto sector is far from over.
