The total number of Ethereum non-fungible token (NFT) transactions hit a fresh all-time low in August, driven by waning interest in digital collectibles projects hosted within its ecosystem.
Ethereum NFTs continue to dominate the digital art industry. That said, the blockchain has seen a dip in activity when it comes to total NFT transactions over the past month.
After registering more than one million transactions per month between April and July, NFT transactions on the future Ethereum proof-of-stake (PoS) network indeed fell to 998,433 in August.
The number of unique buyers falls to its lowest level in nine months
This decline is largely explained by a further reduction in the number of unique buyers, which fell from 229,930 in July to 199,454 in August. This is the lowest number since 152,064 unique buyers in November 2021.
Top-selling NFTs on Ethereum, from Bored Ape Yacht Club (BAYC) tokens to Moonbirds, have also seen a significant drop in unique buyers. BAYC’s unique buyers notably hit their lowest level in 16 months, at 263, for 438 transactions.
CryptoPunks, the third best-selling NFT collection of all time, recorded 103 unique buyers, corresponding to 159 total transactions. Other well-known projects, such as Otherdeeds from the Otherside metaverse, also saw a three-month drop in their number of unique buyers, from 20,514 in May to 1,934 in August. It also matched 3,778 total transactions, another three-month low.
Solana Surpasses Ethereum in Total NFT Transaction Volume
Ronin, the creator of Axie Infinity, the most popular NFT category of all time by sales, processed 10,455 transactions, while Flow, the blockchain that hosts NBA Top Shot and NFL ALL DAY, recorded 648 169 trades.
Total NFT transactions on Polygon and Wax stand at 556,791 and 495,801 respectively. During the same period, Solana is the only chain to top Ethereum with nearly 1.6 million transactions.
ETH’s performance proves lackluster in the month leading up to The Merge
Many ETH holders thought the project would regain ground lost in August, this before its September merger. Unfortunately, Total Locked Value (TVL), NFT sales volume, and the price of ETH all fell in the past month.
Thus, Ethereum’s TVL lost $3 billion before the merger named The Merge, after opening August with $37 billion and closing at $34 billion.
For now, Ethereum’s TVL continues to decline during this month of September, and this has caught the attention of some of the major players in the industry.
Ego Huang, CEO of Deepcoin, said in particular: investor sentiment has been diverted from the impending The Merge to the current global macroeconomic outlook. While the factors contributing to Ethereum’s price drop are worrisome, many are hoping that the move to Proof-of-Stake will help kick-start all of the protocol’s metrics. While it is true that “The Merge” will usher in a new era that could make investors more favorable to Ethereum over its rival Bitcoin, this due to its low energy consumption, in the short term, the coin cannot be isolated from the inflationary pressures experienced by other coins. However, over the long term, Ethereum has the right fundamental and technical foundations to support a further rally towards its previous all-time high (ATH) above $4,891.”
Ethereum NFT sales also tested a 13-month low in August after generating around $497 million. This is the lowest figure since July 2021, which was $410 million.
ETH, the network’s native asset used for on-chain transactions, has been trading below the $2,100 resistance level throughout the month, and it has yet to break above that mark in September.
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NFT Ethereum Transactions Drop Below 1 Million, Suggesting Bearish Sentiment – BeinCrypto
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