NFTs
Ethereum NFTs on Blast – Should ETH Holders Worry Now?
- Blast has surpassed Ethereum in terms of NFT volume
- Although the price of ETH fell, the network’s growth and speed rose significantly on the charts
Ethereum [ETH] has been largely dominant in most sectors of the crypto space. In a sense, however, it appears that the tides have turned in favor of the Blast network.
NFTs in full swing
Recent data suggests that in the last 24 hours, Blast NFT collections like PAC REKT, Blastopians, and Plutocrats have collectively generated more volume than the entire Ethereum NFT market across all exchanges.
Source: X
Now, although Blast has surpassed Ethereum in terms of NFT volume, a significant portion of that volume can be attributed to wash trading. For context, wash trading in NFTs increases trading volume by buying and selling between controlled wallets, creating false popularity and misleading investors. It harms the NFT market by distorting prices and reducing real liquidity.
While a large portion of Blast’s NFT volume may be due to wash trading, declining interest in Ethereum NFTs raises concerns about the state of the network. In fact, AMBCrypto’s analysis of Santiment data revealed that the number of NFTs traded has dropped significantly.
Source: Santíment
Looking deeper
NFT collections on other networks such as Bitcoin and Mythos have managed to outperform Ethereum NFTs. According to CryptoSlam data, popular Ethereum NFT collections such as BAYC and Crypto Punks failed to enter the top 5 best-selling NFTs in the last month. The number of Crypto Punk buyers fell by an alarming 20%, while the number of BAYC buyers fell by 2.78%.
If this trend continues, Ethereum could soon lose its top spot in the NFT sector.
Source: Crypto Slam
ETH holders bleed
As far as the price of ETH is concerned, at press time, it had risen above $3,000 due to Bitcoin’s recovery. Furthermore, network growth for ETH also continued to increase.
The increasing growth of the network is a sign that new addresses have shown interest in ETH. Speed has also increased, implying an increase in transaction activity on the Ethereum network.
Increasing interest from new addresses and increasing velocity could help ETH see green and push the altcoin back to the levels it was trading at before the latest market correction.
Source: Santíment
However, the size of addresses showing interest in ETH will also play a key role in Ethereum’s future price movement.
For example, addresses holding 100-10,000 ETH were in decline at press time, according to Santiment data. Substantial purchases made by large addresses could play an important role in ETH’s price trajectory in the future.
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Source: Santíment