NFT Ethereum trades drop below 1 million, suggesting bearish sentiment

Ethereum’s total number of non-fungible token transactions (NFTs) hit a new all-time low in August, driven by declining interest in digital collectible projects hosted within its ecosystem.

Ethereum NFTs continue to dominate the digital art industry. That said, the blockchain has seen a drop in activity when it comes to total NFT transactions over the past month.

After recording more than a million transactions per month between April and July, NFT transactions on Ethereum’s future proof-of-stake (PoS) network dropped to 998,433 in August.

The number of unique buyers drops to its lowest level in the last nine months

This decline is largely explained by a further reduction in the number of unique buyers, from 229,930 in July to 199,454 in August. This is the lowest number from 152,064 unique buyers in November 2021.

Top-selling NFTs on Ethereum, from Bored Ape Yacht Club (BAYC) tokens to Moonbirds, also saw a significant drop in unique buyers. BAYC’s unique buyers notably 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 the number of unique buyers, from 20,514 in May to 1,934 in August. It also equaled 3,778 total transactions, another three-month low.

Solana outperforms 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 648,169 trades.

Total NFT transactions on Polygon and Wax are 556,791 and 495,801 respectively. In the same period, Solana is the only chain to surpass Ethereum with nearly 1.6 million transactions.

ETH’s performance proved lackluster in the month leading up to The Merge

Many ETH holders thought the project would regain lost ground in August, this before its September merger. Unfortunately, the total frozen value (TVL), NFT sales volume, and ETH price have all fallen over the past month.

Therefore, Ethereum’s TVL lost $ 3 billion before the merger called The Merge, after opening August with $ 37 billion and closing at $ 34 billion.

For now, Ethereum’s TVL continues to decline during this September, and this has attracted the attention of some of the major players in the industry.

Ego Huang, CEO of Deepcoin, said in particular: Investor sentiment has been diverted from the upcoming The Merge to the current global macroeconomic scenario. While the factors contributing to Ethereum’s price drop are troubling, many hope the move to Proof-of-Stake will help kickstart all of the protocol’s metrics. While it is true that “The Merge” will usher in a new era that could make investors more favorable to Ethereum than its rival Bitcoin, this due to its low energy consumption, in the short term, the coin cannot be isolated from inflationary pressures. experienced by other coins. However, in the long term, Ethereum has the right technical and fundamental underpinnings to support a further rally to its previous all-time high (ATH) above $ 4,891. “

Sales of Ethereum NFT also hit a 13-month low in August, after generating around $ 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 break that threshold in September.

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