Key Points
- Blast network has surpassed Ethereum in NFT volume, partly due to wash trading.
- Despite declining interest in Ethereum NFTs, Ethereum’s price and network growth are increasing.
Recent data indicates that the Blast network has overtaken Ethereum in terms of Non-Fungible Token (NFT) trading volume.
Blast’s NFT Volume Surge
Blast NFT collections such as PAC REKT, Blastopians, and Plutocrats have generated more volume than the entire Ethereum NFT market across all exchanges in the last 24 hours. However, a significant part of this volume can be attributed to wash trading, a practice that inflates trading volume by buying and selling between controlled wallets.
This tactic creates an illusion of popularity and can mislead investors by distorting prices and reducing real liquidity. Despite this, the falling interest in Ethereum NFTs raises concerns about the network’s state.
Ethereum’s Position
Data analysis reveals that the number of NFTs traded on Ethereum has significantly decreased. NFT collections on other networks like Bitcoin and Mythos have managed to surpass Ethereum’s NFTs. Popular Ethereum NFT collections such as BAYC and Crypto Punks have not made it into the top five most sold NFTs over the past month.
If this trend continues, Ethereum may lose its leading position in the NFT sector. However, despite the declining interest in Ethereum NFTs, Ethereum’s price has risen above $3,000, supported by Bitcoin’s recovery.
The network growth for Ethereum continues to rise, indicating that new addresses are showing interest in Ethereum. The transaction activity on the Ethereum network is also increasing.
The interest from new addresses and growing transaction activity could help Ethereum recover and return to its previous trading levels. However, the size of the addresses showing interest in Ethereum will also significantly influence Ethereum’s future price movement.
For example, addresses holding between 100-10,000 Ethereum were decreasing at the time of writing, according to data. Large purchases made by these addresses could significantly impact Ethereum’s future price trajectory.
