Ethereum
Will Ethereum NFTs make a comeback?
Onchain Highlights
DEFINITION: Relative amount (share) of gas consumed by the Ethereum network by transactions interacting with non-fungible tokens. This category includes token contract standards (ERC721, ERC1155) and NFT marketplaces (OpenSea, Blur, LooksRare, Rarible, SuperRare) to trade them.
Ethereum Gas Consumption by NFTs Demonstrated important changes In recent years, different platforms have gained and lost importance. Recent data indicates that Blur and OpenSea have consistently dominated gas consumption since the beginning of 2024.
This reflects the increasing activity on these platforms as traders and collectors continue to engage with the NFT market. In contrast, platforms like Rarible and SuperRare are showing relatively lower gas consumption, highlighting their smaller user bases or less frequent transactions.
Ethereum: Gas Usage by NFTs: (Source: Glassnode)
Historically, large spikes in gas consumption by NFT transactions correlate with broader trends in Ethereum price movements. For example, the rise in early 2021 coincided with a considerable rise in the cryptocurrency market, leading to more transactions and higher gas fees. As the price of Ethereum has stabilized in mid-2023, gas consumption related to NFTs has also normalized, illustrating the interdependence of these measures.
The current landscape suggests that even as new NFT markets emerge, established platforms like Blur and OpenSea maintain relative dominance, continually influencing Ethereum’s overall gas consumption patterns. This dynamic plays a crucial role in understanding the operational costs and transaction efficiency of the Ethereum network.
While relative usage may be consistent with past cycles, overall NFT gas consumption has been falling since January 2023 as a percentage of overall network activity. At its peak, gas consumption exceeded 40%, with a consistent level above 30%. Current levels are below 4%, partly due to the increase popularity of 2 layers as Base and side chains as Polygon and a set downward trend on the NFT market.