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HomeNFTNFT activities increase on Ethereum as Bitcoin demands diminish on DeFi

NFT activities increase on Ethereum as Bitcoin demands diminish on DeFi


NFTs continue to be the dominant sector Ethereum Responsible for most transfers on the network.This is due to the newly released Coinmetrics network status report.

NFT token transfers outperform other space transfers

Non-fungible tokens have been trading at record highs in the last few months, despite the general downtrend in the crypto market. In addition, since July 2021, NFT transfers on the network have surpassed Stablecoins and all ERC-20 tokens.

NFT adoption began to surge towards the end of last year, with platforms such as OpenSea, the number of NFT marketplaces, in the spotlight. Record trading volume..

Source: CoinMetrics

Launched in Ethereum in early January, LooksRare recorded over $ 2 billion in trading volume in the first round. 30 days.. Even the Coinbase NFT platform, which has not yet been launched, already has more than 2.4 million people on the waiting list.

Interest in NFTs is not limited to individual investors. Several institutions such as Adidas, Nike and Mercedes have released a limited NFT collection to mark the Metaverse.

Demand for Bitcoin on the Ethereum blockchain is declining

However, the current market recession is having a significant impact on other sectors. One of the affected is the DeFi space that had the locked total value. drop Less than $ 200 billion this year.

Evidence of this is reflected in the influx of wrapped BTC To the Ethereum network, which has been depressed since the beginning of the year.

Wrapped BTC allows Bitcoin holders to join the Ethereum network and DeFi space without losing their assets. Ethereum compatible wBTC can be redeemed for Bitcoin at any time.

Source: CoinMetrics

Currently there is about 263,000w BTC in Ethereum, which is about 1.4% of the total supply of Bitcoin, most of which is locked to the following DeFi platform smart contracts. Manufacturer When Uniswap Like other smart contract-enabled platforms avalanche Also, the bridge has a fair amount of wBTC. Both BTC and ETH active addresses decreased by about 8% weekly.

However, since the beginning of this year, the influx of wBTC into DeFi reflects the decline of the wider crypto market. Last year’s inflows more than doubled, but in 2022 a certain level of inflows will continue.

When Conflict In Eastern Europe, performance is unlikely to improve immediately due to the threat of a global crisis. In the last 24 hours, the market capitalization of cryptocurrencies has decreased by almost 10%.

Posted in: Ethereum, analysis

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