The Current Meta
The non-fungible token ecosystem in December 2019 is undergoing a fundamental transformation that few predicted and even fewer fully understand. According to the comprehensive NFT Yearly Report 2019 published by NonFungible.com, the overall NFT market experienced a 4% decline in USD traded volume compared to 2018, with only a 1% increase in active addresses across the year. On the surface, these numbers suggest stagnation. But beneath the headline figures, a dramatic reshuffling is taking place that will define the trajectory of the entire space for years to come.
The dominant narrative in 2017 and 2018 was all about collectibles. CryptoKitties became the poster child for NFTs, clogging the Ethereum network and generating millions in trading volume. Hundreds of copycat projects followed, each promising to be the next digital Beanie Baby phenomenon. By December 2019, that era is clearly drawing to a close. The NonFungible report explicitly identifies the exhaustion of the collectibles sector, noting a collapse in trading volumes for pure collectible projects. The market has spoken, and it is moving on.
What replaces collectibles is a diverse ecosystem of art, gaming, and functional applications that leverage non-fungible tokens in more sophisticated ways. CryptoKitties, 0xUniverse, and MyCryptoHeroes still account for over 50% of the blockchain gaming community on Ethereum between January and December 2019, but their dominance is gradually eroding as new entrants capture growing segments of the market.
Volume and Floor Dynamics
The trading volume data reveals a market in transition. CryptoKitties, despite remaining the leader in total transactions, has seen its monthly volume decline from nearly 300,000 transactions per month to under 100,000 by late 2019. The collectible mania that defined the early NFT era is giving way to a more mature, if still small, marketplace driven by genuine utility and artistic expression.
On the digital art front, the growth is striking. Platforms like KnownOrigin report over $25,000 in primary sales during December 2019 alone, with more than 181 ETH transacted across 1,518 individual artwork sales and 458 new editions created. These numbers, while modest in absolute terms, represent a tripling of activity in the art category compared to earlier in the year. The floor prices for crypto art are establishing themselves, with notable sales like Rare Designer’s “BLOCKCHAIN EDEN” moving for 10 ETH, approximately $1,484 at December 2019 prices.
The most significant sale of the month occurs on SuperRare, where artists Trevor Jones and Alotta Money collaborate on a piece called “ETH Girl” that sells for over $10,000. This transaction represents a psychological milestone for the market, proving that digital art on the blockchain can command prices that rival physical works from emerging artists. Meanwhile, XCOPY, one of the most prolific crypto artists, sells out a limited edition of 25 pieces on KnownOrigin in just 37 minutes, averaging one sale every 88 seconds.
Community Sentiment
The sentiment within the NFT community in December 2019 is cautiously optimistic. Artists and collectors who weathered the collectible crash of 2018 and the slow bleed of 2019 are beginning to see signs of genuine market development rather than speculative frenzy. The infrastructure is maturing: KnownOrigin launches artist collaboration tools with automatic revenue splitting, email notifications for bid tracking, and begins constructing a virtual gallery in CryptoVoxels, an Ethereum-based metaverse.
The gaming side of the NFT ecosystem is also evolving rapidly. Gods Unchained, a blockchain-based trading card game, sees a significant boost in its player base following the Hong Kong and Blizzard controversy, where Blizzard punished a professional Hearthstone player for political speech. The resulting exodus of players seeking alternative gaming platforms brings new eyes to the blockchain gaming space and validates the concept of true digital ownership in gaming.
The Sandbox, an Animoca Brands-backed virtual world platform, conducts its first LAND presale on December 5, 2019, offering 3,096 parcels of virtual real estate. The response is overwhelming: all parcels sell out within 4 hours, with 2,123 LAND parcels purchased in the first hour alone. This event demonstrates that the concept of virtual land ownership, powered by NFTs, has genuine market demand. Animoca Brands is positioning itself as a major player in the space, having acquired digital collectibles marketplace Quidd for $8 million in August and blockchain game developer nWay for $7.69 million in December.
The Next Evolution
Looking ahead to 2020, the pieces are falling into place for a significant expansion of the NFT ecosystem. The technology stack is maturing, with ERC-721 tokens proving their reliability as a standard for unique digital assets. The creative community is growing, with artists from diverse backgrounds, including Nigerian digital artist Osinachi selling works for 1 ETH, approximately $150, finding direct paths to international collectors without traditional gatekeepers.
The convergence of virtual worlds, digital art, and blockchain gaming is creating a unified ecosystem where NFTs serve as the connective tissue. A collector who buys LAND in The Sandbox can display crypto art purchased on KnownOrigin in their virtual gallery. A gamer who earns rare items in Gods Unchained can trade them on open marketplaces. These interconnected use cases are moving NFTs beyond speculative collectibles toward genuine utility and cultural significance.
The entry of established brands is accelerating this trend. FC Bayern Munich launches digital player card collectibles through blockchain platforms. F1 Delta Time, an officially licensed Formula 1 blockchain game, generates significant auction volumes, with particular sales fetching over 121 ETH in cumulative auction proceeds. These partnerships bring mainstream credibility and new audiences to the NFT space.
Investor Takeaway
For investors and observers tracking the NFT space in December 2019, the data presents a compelling narrative of a market that is quietly building momentum beneath the surface. With Bitcoin trading at approximately $7,400 and Ethereum at $148, the broader cryptocurrency market is in a holding pattern. But the NFT ecosystem is showing signs of decoupling from the speculative cycles that have historically driven crypto markets.
The collapse of the collectibles sector, while painful for early speculators, is actually a healthy development. It clears the way for projects with genuine utility, strong communities, and sustainable business models. The growth in digital art sales, the success of virtual land presales, and the entry of mainstream brands all point to a market that is evolving from novelty to legitimacy.
Key metrics to watch include monthly transaction volumes on platforms like KnownOrigin and SuperRare, the pace of virtual land sales in projects like The Sandbox and Decentraland, and the continued diversification of NFT use cases beyond simple collectibles. The infrastructure investments being made in December 2019, from platform features to metaverse galleries, are laying the groundwork for the next phase of growth. Those who recognize the structural shift from collectibles to functional digital assets are positioning themselves ahead of what could be a transformative year for the NFT ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The NFT market is highly speculative and volatile. Past performance does not guarantee future results. Always conduct your own research before making any investment decisions.
cryptokitties clogging eth was the original nft narrative. crazy that it took until 2019 for the market to pivot to art
the real pivot was when artists realized they could earn royalties on secondary sales. that changed everything
royalties were the killer feature until marketplaces started racing to zero and removed royalty enforcement entirely. artists got the short end again
The NonFungible report calling collectibles dead in 2019 was prescient. Art and gaming NFTs took over within a year.
looking at this from 2026, the collectibles to art pivot was just act one. gaming NFTs and tokenized real world assets are the current chapter