The most popular blockchain for NFTs is Ethereum (CRYPTO: ETH)So, it makes sense that anyone investing in Ethereum should pay attention to the NFT market crash. According to some estimates, 80% of all NFTs are traded on the Ethereum blockchain, and two of the most popular NFTs – CryptoPunks and Bored Ape Yacht Club – are created on it.
While NFT Activity appears to have peaked in early 2022, and its slowdown has been particularly dramatic this summer. Some NFT markets are turning into ghost towns. Daily transaction volume on OpenSea (the most popular NFT market) has decreased by 99% over the past 90 days. Ground prices for boring monkeys have fallen more than 50% in the past 90 days. Some tech companies are even trying to distance themselves from the term “NFTs” altogether, preferring to call them “digital holdings.”
Ethereum vs other block chains
If there is a silver lining here, it is Ethereum seems to hold up much better than other blockchains Where people mint, buy and sell NFTs. The place to look is DappRadar, which contains detailed data on transaction volumes, trader numbers, and sales numbers. You can also focus on specific block chains for side-by-side comparisons.
So, at a glance, you can see that the most popular NFT on Ethereum is Bored Apes. On Wednesday morning, over the past 24 hours, it was the top-five selling Bored Ape Yacht Club range, with prices ranging from $131,000 to $170,000 per single NFT. These prices may sound impressive, but in reality they represent a significant reduction in sales prices expected during the summer. Until two weeks ago, the best-selling Bored Ape NFT sold for $1.46 million. The price fluctuations were more dramatic for the NFT groups without the fame and popularity of the bored monkeys.
In terms of transaction volume, other NFT groups – such as Moonbirds – are actually seeing more activity than bored monkeys. Now compare that to the situation in other block chains. on me Avalanche (CRYPTO: AVAX)For example, nothing is actually happening. Every NFT group except for one has the number “0” next to it. not good.
Also keep in mind that NFTs are not the only game in town for Ethereum. If you think of all the activity taking place on the Ethereum blockchain, it includes areas like Decentralized Finance (DeFi), blockchain gaming, and Web3 (an umbrella term used to describe the expected “next iteration of the Internet,” which includes things like the metaverse). Each of these are a source of potential transaction volume for Ethereum.
At the moment, blockchain games seem to be picking up the slack in terms of activity. According to a recent survey by DappRadar, blockchain gaming now accounts for 60% of all blockchain activity. And blockchain gaming is, you guessed it, another strength of Ethereum. Some of the most popular games and metaverse experiences are built on Ethereum. According to DappRadar, games will be an important driver for months to come. So even though the NFT sector is not doing well now, the other sectors are showing strength.
New NFT wave
Finally, one thing to consider is a possible new wave of NFT activity about to hit the market. meta pads (NASDAQ: META)For example, it announced the integration of NFTs with both Facebook and Instagram. And the ebay (NASDAQ: EBAY) I entered the NFT game over the past year with the goal of reinventing NFTs as “digital collectibles”. If you are an investor in Ethereum, you should hope that this new activity will help support the NFT ground price and attract more people interested in buying and selling it. If people see their friends and family post NFTs on Instagram, it’s not unreasonable to assume that more of them might also be inspired to do so.
Is Ethereum still a buy?
Yes, the NFT market crash should be a cause for concern if you are an Ethereum investor. But Ethereum seems to hold up better than other blockchains, except perhaps Solana (CRYPTO: SOL). The Ethereum blockchain is certainly sufficiently diverse to be able to accommodate the slowdown in transaction activity associated with NFT. So don’t let the slowdown in the NFT market stop you from getting into Ethereum, which is still the world’s first Tier 1 blockchain. If you take into account gaming and the metaverse, there is still a huge bullish potential for Ethereum after the merger.
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Randy Zuckerberg, former director of market development and spokesperson for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Dominic Bassolto He has positions in Ethereum. Motley Fool has positions at Avalanche, Ethereum, and Meta Platforms, Inc. And Solana recommends it. Motley Fool recommends eBay and recommends the following options: Short October 2022 calls at $50 on eBay. Motley Fool has a profile Disclosure Policy.
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