NFT Gas Usage Shows Downward Trend, Signals Shift In Landscape - CryptoInfoNet

NFT Gas Usage Shows Downward Trend, Signals Shift In Landscape – CryptoInfoNet

Time Stamp: August 3, 2023 9:09 AM
Source Node: 2195102

Ethereum gas consumption by nonfungible tokens (NFTs) has dropped significantly since its high in 2021. NFT marketplaces and projects that occupied top spots in gas consumption at the time have declined sharply in the past two years.

Data shared by the on-chain analytics platform Glassnode shows that gas usage by NFT marketplaces is currently on a downward trend. This indicates a possible shift in terms of NFT use, where more users may be opting to hold on to their assets instead of trading them on marketplaces.

7Db8A95B C802 4C75 Ac7F 210C343Ce306Etherscan’s top 10 contracts or accounts consuming gas on Aug. 4, 2021. Source: The Wayback Machine

In 2021, NFTs were leading the charts in terms of Ethereum gas usage, according to blockchain explorer Etherscan. On Aug. 4, 2021, NFT gaming project Axie Infinity placed second in terms of gas usage due to its Ronin bridge, which transfers assets from Ethereum to the Ronin blockchain. On the same day, NFT marketplace OpenSea was in fourth spot on the list.

Related: Ethereum gas fees cool down after May memecoin frenzy

However, jumping forward to 2023, crypto analytics platform Nansen revealed that NFT marketplaces only accounted for just over 3% of the entire gas consumption in a weekly period in May. This happened amid a surge in Ether (ETH) gas prices at the time and sparked theories that NFTs were only a “product of excess liquidity” due to money printing during the pandemic.

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