Nonfungible tokens (NFTs) have been one of the unrivaled sensations in the crypto world, capturing the imagination of individuals and industries alike. However, an interesting pattern has emerged in this engrossing landscape.
Data from the on-chain analytics platform Glassnode paints an intriguing picture, showing a significant drop in the Ethereum gas consumption by NFT marketplaces in recent years. This trend points to a possible shift in NFT usage, with more individuals potentially choosing to hold onto their assets rather than trading them.
But, let’s roll the tape back a few years. In 2021, NFTs were topping the charts in terms of Ethereum gas usage, with NFT gaming project Axie Infinity and the NFT marketplace OpenSea marking impressive spots on the Etherscan list due to their high-volume activity.
However, fast forward to 2023, things seem to have taken a different turn. Crypto analytics platform Nansen has noted the Ethereum-based NFT marketplaces accounted for just over 3% of the entire gas consumption for a week in May. Moreover, there has been a steady decline in gas consumption related to NFTs currently, with OpenSea, SuperRare, LooksRare, etc., collectively accounting for a meager 1.85% of the Ethereum network’s gas consumption.
Granted, there’s a caveat to this – some projects that had been key players in Etherscan’s top gas users, such as Axie Infinity and OpenSea, are now barely visible in the top 50. Though this might offer a sense of disillusionment to some, it signals a whole different story – NFT trading has altered from the frenzy it once was, to a slowed down, more thoughtful pace.
This trend has prompted a theory suggesting that NFTs were just a “product of excess liquidity” due to the rampant money printing during the pandemic. As a result, users may be choosing to hold and appreciate their NFT assets, driving down the overall trading activity and subsequently, gas consumption.
However, while the changing dynamics of gas consumption and NFT marketplaces may suggest a relative calm, it’s worth remembering the foundation the NFT market has laid in the broader realm of digital assets. Reminiscent of industry stalwarts and their dynamic journeys, the world of NFTs is merely undergoing a phase of evolution, creating new norms and inflection points in its stride.
As NFT enthusiasts and crypto watchers, it’s crucial to view this shift not as a sign of decline, but as an indicator of the market’s maturation. It reflects the growing understanding and sophistication of the participants and the continued integration of the technology into broader spheres of human activity. In essence, the NFT world is evolving, and this evolution is what makes it worth our attention.
Source: Cointelegraph
