Token Terminal, an analytics company, indicated in its recent tweet that the private market’s interest in NFT marketplaces may be increasing. Ethereum (ETH) could regain its leadership in the NFT market.
The Current State of the NFT Market!
Taking a look at Ethereum’s performance in the past few years can be important. Additionally, IntoTheBlock’s tweet on October 15th highlighted several important metrics. Particularly, NFTs were the main factor behind Ethereum’s transaction fees in 2021. Now, they only contribute 8%. Despite the fact that gas fees are at their lowest level since September 2020, making NFT transactions and mining cheaper, there has been no change in user interest.
CryptoSlam’s data also recorded a similar trend of decreasing interest in ETH NFTs. Moreover, the sales volume of ETH NFTs dropped by over 44% to $137 million in the last 30 days. The total number of transactions decreased by approximately 60% last month, indicating that investors are not trading NFTs.
Santiment Data!
In addition to the data, the total sellers and buyers of ETH NFTs also decreased by 2.5% and 0.5% respectively last month. In fact, Santiment’s data revealed that the total number of NFT transactions on Ethereum has also decreased in the past four weeks. However, it may be surprising to see that Ethereum’s total NFT transaction volume in USD has increased several times recently despite this decline.
Therefore, considering the mentioned data sets, it does not seem likely that ETH NFTs will attract attention in the near future as they did during the NFT summer. Not only Ethereum but also BTC NFTs, known as Ordinals, witnessed a downward trend. According to Dune Analytics, the weekly number of minted NFTs has sharply decreased in the past two months. This is a concerning sign despite the token’s price gaining some upward momentum in the troubled NFT ecosystem of ETH. According to CoinMarketCap, ETH has increased by more than 2% in the last 24 hours. At the time of writing, it was trading at $1,586.87 and had a market capitalization of over $190 billion.
