According to the crypto analytics company Glassnode, the percentage of NFT transactions on Ethereum has drastically decreased, from 22% to 8.3%. On the other hand, the space that NFTs had previously taken over was occupied by stablecoin transactions. A detrimental impact on the broader NFT market may result from traders’ decreased interest.
NFTs on #Ethereum accounted for 18% to 22% of transactions during H1-2022.However, NFT dominance has since declined to just 8.3% as interest in the space wanes during the bear market.Stablecoin dominance has spiked since FTX from 10% to 12.5%.
NFT transactions were dropping, although blue chip NFT collections on the Ethereum network still did reasonably well. For example, the Bored Ape Yacht Club [BAYC] collection experienced a staggering 337% increase in volume, according to data provided by NFTGO.
Additionally, over the previous week, sales increased by 325%. Another collection, Mutant Ape Yacht Club [MAYC], experienced a comparable increase in volume and sales.
As a result, it was clear that the Ethereum network’s lower transaction volume had not negatively impacted blue chip NFTs. Still, it might have had an impact on forthcoming and smaller collections.
Addresses Still Supporting Ethereum
So, as of the publishing of this article, prominent addresses were still supporting ETH. The graphic below shows that 128k addresses were holding more than 32 coins, which is a record high.
Additionally, retail investors also demonstrated faith in the altcoin. Glassnode showed a massive rise in the number of addresses holding 0.01 coins. Hit a three-month high of 22.3 million addresses.
Investors have consistently had faith in Ethereum. Top traders on the Binance exchange purchased more Ethereum while the price of ETH was falling.
Most traders on the Binance exchange had long holdings in Ethereum at the time this article was written, which was over 50%.
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Moreover, the Market Value to Realized Value (MVRV) ratio for Ethereum revealed that addresses holding ETH were benefiting. This implied that some Ethereum owners would help if they decided to sell their investments.
However, the Long/Short difference showed that if short-term holders chose to sell their ETH, it would primarily be them who would benefit.