Journalist
Posted:
- Ethereum’s NFT activity signals waning interest.
- Ethereum sees a surge in network activity mid-week due to a surge in demand.
Just two years ago, the NFT market was one of the hottest segments in DeFi, with Ethereum as the leading network. Fast forward to the present and NFT demand is a fraction of what it once was. But how bad is the state of the NFT segment, especially on the Ethereum network?
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Santiment’s total NFT transaction count shows that demand has fallen significantly, especially over the past twelve months. For perspective, the Ethereum blockchain recorded approximately 6,444 peak NFT transactions on the Ethereum blockchain on March 19. Fast forward to the present and the count stood at 13 in the past 24 hours at the time of writing.
Source: Santiment
Based on the above data, it can be said that the number of NFT transactions has decreased by 99.97% from the peak level to the current level. NFT volumes on Ethereum also fell so much that decentralized social network Friend.tech managed to overtake it in terms of daily trading volume.
.@friendtech Keys’ daily trading volume exceeded that of the total NFT trading volume on Ethereum for the third time since the decentralized social media app launched. On September 9, daily trading volume was ahead https://t.co/ZhbqCaclRK Keys totaled $12.3 million, while daily NFT trading volume was $9.2 million. pic.twitter.com/eOMtJNfVN8
— Galaxy Research (@glxyresearch) September 12, 2023
The fact that a relatively new social network is now surpassing Ethereum’s NFT demand is a testament to the extent to which the NFT segment has declined. Note that this was one of the segments that contributed a significant amount of network activity and network costs during the height of the 2021 bull run.
Ethereum network fees also took a hit with NFT activity almost non-existent. Business has also been irritated by sluggish market conditions in recent weeks. According to Glassnode, Ethereum’s average gas fee was at an eight-month low.
📉 #Ethereum $ETH The average gas price (7d MA) just reached an 8-month low of 16,018 GWEI
The previous eight-month low of 16.061 GWEI was observed on September 11, 2023
View statistics:https://t.co/6QGDfZoULY pic.twitter.com/B8uK3pTk1Y
— Glassnode Alerts (@glassnodealerts) September 13, 2023
Ethereum records a surge in network activity
In terms of the latest developments, the Ethereum network saw a significant spike in the number of daily active addresses over the past 24 hours. Daily active addresses peaked at $1.05 million at the time of writing, which was almost double the number of active addresses recorded on Tuesday (September 12).
Source: Santiment
Interestingly, as of September 10, the network recorded fewer than 343,000 daily active addresses. What was also worth noting was that the spike in the last 24 hours followed the increase in transaction volume seen on Tuesday (September 12).
How much is 1,10,100 ETHs worth today?
ETH’s price action is up almost 4% over the past two days. This indicated that the observed spike in network activity could be bullish. However, the current momentum appears limited considering that the on-chain volume observed over the past five days was still within the normal range.
Nevertheless, there was a sentiment shift in favor of the bulls, which was in line with the surge in network activity and bullish price action thus far.
Source: Santiment