The Ethereum Merge is finally here. The switch to PoS will make Ethereum 99 percent more energy efficient. Ethereum will enter a new era of possibilities as a result of this. The transition from proof-of-work (PoW) to proof-of-stake (PoS) could deliver two visible changes to NFTs.
First, users will see a dramatic shift in energy consumption. Second, the network may face a sudden popularity surge once again, which would impact the NFT space. That said, Ethereum is on the decline this week. The transition to the proof-of-stake system was successfully completed just after 2:30 a.m. ET, or 5:30 a.m. GMT, at block 15537391. While The Merge didn’t have a major impact on the price of Ether, on-chain data shows an inflow of $1.2 billion onto exchanges.
There isn’t a consensus yet, but steep exchange inflow typically indicates traders are getting ready to sell. It could be anything from investors hedging positions to preparing to collect airdropped tokens from the expected Ethereum PoW fork. Ethereum is down 8.3% in the last seven days. Most projects are still in the red.
NFT Market Cap & Volume
The number of sales this week decreased to 12.3k from 35k (September 8) and the sales (USD) decreased to $3.66 million from $16.2 million in the same time period. This represents a 64.80% decrease in the number of sales and a 77.44% decrease in sales (USD) this week. Whales hold NFTs worth 1.82 million ETH, occupying 19.30% of the global market cap of 9.44 million ETH.
Seven-day market volume is down by 8.48%, while last week there was an additional significant decline of around 20%. The market capital remains largely untouched with a negligible increase of 0.64%. With the absence of the usual August NFT pump, NFT speculators are hoping for September with a run-up to the end of the year to turn bullish.
But the chances of that happening are slim as the market is not seeing such volume. Compared to January 2022 or May 2022, the market volume is still currently in a declining phase. Only time will tell what’s in store for the speculators.
Holder & Traders
The number of holders has experienced a dramatic increase in its value. It rose from 3 million at the beginning of September to 3.2 million now (September 15). And the overall trading activity in the NFT space seems to be down. The number of traders, buyers, and sellers experienced a considerable decrease of about 20%, 19%, and 24%, respectively.
Just like the past few weeks, the majority of the metrics have been showing a noticeable decrease in their value. This is a negative sign for the market as it shows the continuation of the bear market.
Solana Spotlight
Even though the volume of the NFTs built on Ethereum is enormously larger than that of the NFTs in the Solana space, NFTs in the Solana space have performed better than Ethereum-based NFTs. Despite the tough market conditions, user adoption has grown substantially in the Solana NFT space.
The Ethereum Merge may make the further battles between Solana, Polygon, and Ethereum for minting new NFTs interesting. These so-called Ethereum killers previously could use this staking feature to their advantage. However, as Ethereum gas fees after The Merge will remain similar, they will still have those advantages.
Quickfire NFT News Roundup
- Immutable X and Rariable partner up, allowing the Rariable NFT marketplace to offer gaming NFTs.
- NFT creators are trying to win over regulators with NFTs in China.
- Are NFTs going mainstream? The New York Museum of Modern Art is looking to buy NFTs.
- The bear market is taking more casualties – Rentable, the NFT renting platform, sees no demand.
- Art that served as the basis for Damien Hirst’s first NFT collection, The Currency, is about to get burned.
⬆️Moreover, for more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ ALTCOIN BUZZ – BINANCE – GET UP TO $800* ON SIGN UP
Sign up with Binance using our Affiliate Link and get the following benefits:
- Get a $100 instant bonus with a first-time deposit of $50 within 7 days,
- Get a 20% trading fee discount for life!
- Get $200 worth of 2 months of Altcoin Buzz Access PRO Membership (50+ Trading Signals, Hidden Gems) and unlock up to $500 more in prizes
Click on the following link (as per your location) to avail the benefits.
Binance Global
Binance US
For further details visit our special Binance Page. Terms & Conditions Apply.
Disclosure: Altcoin Buzz may receive a commission, at no extra cost to you, if you click through our links and make a purchase from one of our partners.
