Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The gas consumption of Ethereum by nonfungible tokens (NFTs) has seen a notable decline since its peak in 2021. NFT marketplaces and projects that previously ranked high in gas usage have experienced a significant drop over the last two years.
Information provided by the on-chain analytics service Glassnode indicates that gas usage by NFT marketplaces is presently on a decreasing trajectory. This suggests a potential change in NFT engagement, with a growing number of users possibly choosing to retain their assets rather than trading them on marketplaces.
Etherscan’s top 10 contracts or accounts consuming gas on Aug. 4, 2021. Source: The Wayback Machine
In 2021, NFTs dominated the Ethereum gas usage rankings, as reported by blockchain explorer Etherscan. On August 4, 2021, the NFT gaming project Axie Infinity ranked second in gas consumption due to its Ronin bridge, which facilitates the transfer of assets from Ethereum to the Ronin blockchain. On that same day, the NFT marketplace OpenSea held the fourth position on the list.
Related: Ethereum gas fees cool down after May memecoin frenzy
Related Posts
However, looking ahead to 2023, the crypto analytics platform Nansen disclosed that NFT marketplaces represented just over 3% of the total gas consumption during a weekly period in May. This occurred amidst a rise in Ether (ETH) gas prices and led to speculation that NFTs were merely a “product of excess liquidity” resulting from monetary expansion during the pandemic.
The era of NFTs leading the Ethereum gas consumption charts has passed. This week, among the top 20 gas consumers, OpenSea and Blur together accounted for less than 10%.
In comparison to all gas consumers, NFT marketplaces represented just over 3%. Uniswap, on the other hand, was 10 times higher at 31.99%. pic.twitter.com/4NUF6Yb3eX— Nansen (@nansen_ai) May 19, 2023
Currently, the gas consumption attributed to NFTs continues to decline. At present, the gas usage of Blur, OpenSea, SuperRare, LooksRare, and Rarible constitutes approximately 1.85% of the total gas consumption across the Ethereum network.
Moreover, OpenSea and Axie Infinity — once leaders in Etherscan’s gas usage rankings — are no longer found in the top 50 list. Nevertheless, while marketplaces are absent from the gas consumption rankings, the NFT marketplace Blur still occupies a position around Etherscan’s top 30 for gas consumers as of this writing.
Collect this article as an NFT to commemorate this moment in history and demonstrate your support for independent journalism in the crypto sector.
Magazine: Ordinals turned Bitcoin into a worse version of Ethereum: Can we fix it?
