Blockchain intelligence platform Glassnode released a report on Wednesday analyzing how Blur, a new “hot spot” for NFT transactions, is slowly restarting the on-chain NFT economy.
Over the past 2 months, the company has recorded a 94% increase in gas consumption for transactions involving non-fungible assets on Ethereum.
fuzzy rise
like Report As explained, Ethereum gas fees are more expensive this month, with the average transaction gas price rising to 38 gwei, compared to about 10 to 20 gwei in the previous nine months. This is higher than the gas cost of the FTX crash in November (36 gwei) and the Binance bank run in December (24 gwei) — both events that created demand. High block space increases transaction costs.
Source: Glassnode
Glass-node writes:
“After careful inspection…we were able to determine that the main source of increased network activity was the NFT market, which again showed signs of growth.”
NFT has experienced a downturn in 2022. Both the trading volume and the bottom price of top collectibles have plummeted. Various analyzes show that the NFT economy is overwhelmed by wash trading. OpenSea — the longtime king of the NFT market — was forced to lay off 20% of its staff in June due to the bear market and macroeconomic pressures.
Carnage gave way to a thriving market for NFTs and the new crafting tool Blur. Launched in October, Blur began dominating 78% of NFT transfer volume using a “zero transaction fee model and optional royalties.”
Despite also switching to a free-to-play model after the competition, OpenSea has so far been unable to keep up with Blur’s rapid growth. According to Glassnode, this is because Blur has attracted a community of professional traders, unlike OpenSea’s historical target audience of “creators and collectors.”
A typical Blur user makes 4 to 5 transactions per day on the platform, while OpenSea averages only 2 transactions per user.
The report states:
“Higher frequency of sales can create a flywheel effect, as more NFT sellers feel confident hearing about Blur’s platform, which in turn creates bigger offers, which in turn attracts more buyers.”
Accept NFTs
While the gas numbers look promising, overall NFT adoption doesn’t appear to be affected by Blur’s growth. Glassnode data shows that the growth rate of new addresses in Ethereum is still 40%, which is lower than the level in February last year. This means that Blur users appear to be mostly existing Ethereum users rather than brand new players.
However, when looking at Bitcoin, the discovery of an NFT in December sparked a wave of adoption for the network’s 2021 Taproot upgrade. Stacks, a related protocol that also supports NFTs, has seen a 50% increase in the past week.
- Spot $577M worth of NFT wash trades on Blur
- An investor dumped 1,010 NFTs on the Blur marketplace
- Illuvium DAO blocks Suzhu NFT unpacking event (3AC)
Mingying
According to Crypto Potato
