NFTs See a Resurgence on Ethereum as Dominance Reaches 22%
• According to Glassnode’s weekly report, the non-fungible token (NFT) dominance on Ethereum has rebounded to 22%.
• This metric measures the percentage of total gas usage on the ETH network that a particular transaction type is consuming.
• When the value of this metric increases for a specific type of token, it means that the token is seeing relatively higher usage from holders than other transaction types.
The non-fungible token (NFT) market on Ethereum has been experiencing a resurgence recently, according to the latest report from Glassnode. The report indicated that the NFT dominance on Ethereum had rebounded to 22%, suggesting that these unique digital assets are making a comeback.
NFTs are unique digital assets that have been gaining traction in recent years, thanks to their ability to represent real-world items such as artwork, collectibles, and even real estate. Ethereum has been the primary platform for these tokens, with the majority of the NFT market existing on the blockchain.
The report from Glassnode indicated that the NFT dominance on Ethereum had dropped to only 13% recently. This metric measures the percentage of total gas usage on the ETH network that a particular transaction type is consuming right now. When the value of this metric increases for a specific type of token, it means that the token is now making up for a higher part of the total gas consumption on the Ethereum network and is, thus, seeing relatively higher usage from holders than the other transaction types.
Apart from NFTs, other popular applications that exist on Ethereum include ERC20 tokens, bridges, MEV bots, and DeFi. Each of these applications are consuming gas on the Ethereum network and can be measured by the same metric. The report indicated that the NFT dominance on Ethereum had declined to only 13% in the recent past, but had since rebounded to 22%, suggesting that the interest in these tokens is making a comeback.
This resurgence in NFTs is further evidenced by the increasing number of projects and platforms that are entering the market. Companies such as Nifty Gateway and OpenSea have been at the forefront of this trend, by providing users with easy to use interfaces to purchase and trade NFTs.
The rebound of NFTs on Ethereum is an exciting development for the blockchain industry, as it shows that these digital assets are gaining traction with users and investors. If the trend continues, it could lead to more projects and platforms entering the market, further driving up the demand for NFTs.