The total number of Ethereum non-fungible token (NFT) transactions hit a fresh all-time low in August, driven by declining interest in digital collectibles projects hosted within in its ecosystem.
Ethereum NFTs continue to dominate the digital art industry. As such, the blockchain has seen a decline in activity when it comes to total NFT transactions in the past month.
After registering more than one million transactions per month between April and July, NFT transactions on the upcoming Ethereum proof-of-stake (PoS) network actually fell to 998,433 in August.
The number of unique buyers fell to the lowest level in nine months
This decrease is largely explained by a further decrease 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.
Ethereum’s best-selling NFTs, from Bored Ape Yacht Club (BAYC) tokens to Moonbirds, also saw a significant drop in unique buyers. Unique BAYC buyers 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 equated to 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 a 648 169 trades.
Total NFT transactions on Polygon and Wax stood at 556,791 and 495,801 respectively. During the same period, Solana was the only chain that topped Ethereum with almost 1.6 million transactions.
ETH’s performance proved to be lackluster in the month leading up to The Merge
Many ETH owners think the project will regain the ground it lost in August, this is before the merger in September. Unfortunately, Total Locked Value (TVL), NFT trading volume, and ETH price all fell in the last 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.
Currently, Ethereum’s TVL continues to decrease this month of September, and this has attracted the attention of some major players in the industry.
Ego Huang, the CEO of Deepcoin, said in particular: “The total value locked (TVL) of Ethereum protocols fell by 5.50% to $32.92 billion in the last 24 hours , which shows that the sentiment of investors’ attention has shifted from the upcoming The Merge to the current global macroeconomic outlook. While the factors that contributed to the decline in the price of Ethereum are worrying, many hope that the shift to Proof-of -Stake will help start all the metrics of the protocol. While it is true that “The Merge” will start a new era that will make investors more favorable to Ethereum than its rival Bitcoin, this is due to the low energy consumption, in the short term, the coin will not be isolated from the inflationary pressures experienced by other coins. However, in the long term, Ethereum has the right fundamental and technical foundations to support a further rally towards the previous all-time high (ATH) above $4,891.
Ethereum NFT sales also hit a 13-month low in August after generating about $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 has yet to surpass the September mark.
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