The most popular blockchain for NFT is ethereum (ethereum -2.70%)So it makes sense that everyone investing in Ethereum should pay attention to the collapse of the NFT market. By some estimates, 80% of all NFTs are traded on his Ethereum blockchain, creating two of his most famous NFT collections (CryptoPunks and Bored Ape Yacht Club).
in the meantime NFTs Activity appears to have peaked in early 2022, but the slowdown has been particularly dramatic this summer. Part of his NFT marketplace is turning into a ghost town. Daily transaction volume on OpenSea (the most popular NFT marketplace) has decreased by 99% in the last 90 days. Bored Apes’ lowest price has decreased by more than 50% over the last 90 days. Some tech companies have distanced themselves completely from the term “NFT” and are calling it “digital collections.”
Ethereum and other blockchains
If there’s a ray of hope here, it’s it Ethereum seems to hold up much better than other blockchains A place where people mint, buy and sell NFTs. Of note is DappRadar, which provides detailed data such as trading volume, number of traders, and number of sales. You can also focus on a specific blockchain for side-by-side comparison.
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So, at first glance, we can see that the most popular NFT on Ethereum is Bored Apes. Wednesday morning, the top five selling items in the last 24 hours were all from the Bored Ape Yacht Club collection, with prices ranging from $131,000 to $170,000 for one of his NFTs. These prices may sound impressive, but they actually represent a significant drop in expected summer sales prices. Even two weeks ago, the best-selling Bored Ape NFT sold for $1.46 million. Without the fame and fame of Bored Apes, the NFT collection’s price fluctuations are even more dramatic.
In terms of transaction volume, other NFT collections such as Moonbirds are actually seeing more activity than Bored Apes. Let’s compare this to the situation in other blockchains.upon avalanche (Crypt: AVAX), for example, literally nothing is happening. All but one of the NFT collections have the number “0” next to them. not good.
Diversification
Also, consider that Ethereum games are not just NFTs. Think of all the activity going on on the Ethereum blockchain: decentralized finance (DeFi), blockchain gaming, and Web3 (the umbrella term used to describe the anticipated “next iteration of the internet”). terminology). including the metaverse, etc.). Each of these is a potential source of transaction volume for Ethereum.
Currently, blockchain games seem to be on the loose in terms of activity. Blockchain gaming now accounts for 60% of all blockchain activity, according to a recent DappRadar study. As you can imagine, blockchain games are another strength of Ethereum. Some of the most popular games and Metaverse experiences are built on Ethereum. According to DappRadar, gaming will be a key driver over the coming months. So even if the NFT segment is currently not doing well, other segments are doing well.
New NFT wave
Finally, one thing to keep in mind is the potential new wave of NFT activity about to hit the market. meta platform (NASDAQ: Meta)For example, we announced the integration of NFTs on both Facebook and Instagram.When Ebay (Nasdaq: eBay) has been in the NFT game for the past year with the goal of reinventing NFTs as a ‘digital collection’. If you’re an Ethereum investor, you should expect this new activity to underpin NFT floor prices and get more people interested in buying and selling them. It’s not unreasonable to speculate that more people might be inspired to do so if they see you posting NFTs.
Still buying ethereum?
Yes, if you are an Ethereum investor, the collapse of the NFT market should be a cause for concern. But Ethereum seems to hold up better than other blockchains, with perhaps an exception. Solana (Crypto: SOL)The Ethereum blockchain has certainly diversified into sufficiently different areas to be able to absorb the slowdown in NFT-related transactional activity. So don’t let the NFT market slowdown prevent you from entering Ethereum, which is still the best Layer 1 blockchain in the world. Considering games and the metaverse, Ethereum still has a lot of potential after the merger.
Randy Zuckerberg, former director of market development and spokeswoman for Facebook and sister of Meta Platform CEO Mark Zuckerberg, is a member of the Motley Fool’s board of directors. Dominic Basto I have a position in Ethereum. The Motley Fool has positions in and recommends Avalanche, Ethereum, Meta Platforms, Inc., and Solana. The Motley Fool recommends eBay and recommends the following options: The Motley Fool Disclosure policy.
