ETH continued to rebound from its July low and broke through $2500 amid increasing network usage. This increase in interest is mainly driven by the explosive growth of NFTs and games. With the upcoming London hard fork and EIP-1559 becoming a secondary topic of cryptocurrency, the price of ETH has happily grabbed the tail of the NFT.
The rise of NFTs put DeFi temporarily in its shadow, making every market participant want to know the next step of NFT. In this article, we will explore:
Quickly introduce NFT and its history.
The price of NFT collectibles has exploded in the past few months.
The growth of OpenSea Exchange and a wide range of indicators about NFT traders and their activities.
The rise of NFT games.
Since DeFi summer, Ethernet Square overwhelming source of the advantages of network use is Uniswap-V2. Uniswap is still a dominant gas consumer, but in the past few weeks, we have often seen Uniswap ranked second or third in total gas consumption for hours or even days, firmly behind The non-homogeneous Token (NFT) project is mainly the auction of collectibles. Please see the daily consumption on August 2 below as an example.
Data source: Parsec Finance
Compared with the peak period of DeFi activities in the summer and beyond, the unexpected gas consumption is still insignificant. At that time, more than 800,000 addresses interacted with Uniswap every month, and now this number has dropped below 340,000. In other words, OpenSea and other NFT exchanges follow many major cryptocurrency projects in terms of active addresses.
NFTs are different from ordinary encrypted Tokens in that they are unforgeable, which means that each Token is unique and independently valued. Most Ethereum NFTs comply with the ERC-721 standard, which is Ethereum’s homogenized token standard. With the support of this standard, a whole generation of 1/1 art and 1/x theme releases have been launched and achieved great success.
As NFT’s artworks and collections mark a new era, the exchange of items in the past was very private and non-social. Buyers/sellers no longer need to wait for slow centralized parties to list their assets, ship and trade, organize auction days, or approve their sales through centralized entities. NFT allows transactions to be conducted in a peer-to-peer manner, exchanging ownership of these collectibles around the clock. The main trading venues for NFTs include OpenSea Exchange and Rarible.
1/1 Artworks are those works cast by artists on the blockchain as single-issue NFTs. They are delivered separately, sometimes as multiple copies of the same work. 1/x collectibles are collections of NFTs with unique attributes, usually sticking to some themes. Cryptopunks is the most valuable of these 1/x collectibles.
What makes these NFTs valuable?
1. Value comes from status, scarcity, community and reputation.
2. A (relatively) liquid market that allows traders to interact and participate in price discovery around the clock.
The issues with the rarest features in each collectible are often traded at the highest price, traded and denominated in ETH. Rarity increases the interest in NFT and the status of the holder. Please note that the average price of cryptocurrencies has risen sharply. They have exploded, and countless popular figures inside and outside of cryptocurrencies are holding and showing off their punks.
Many savvy NFT investors will follow the hottest declines, track new projects, and try to understand which projects will gain the interest of the NFT community. Projects with the strongest price growth tend to have large Discord communities , where owners of NFTs from the series discuss their interests and make friends for their common interests. Take Bored Apes Yacht Club as an example.
Bored Apes was launched at the end of April, only three months ago. Investors in NFTs like Bored Apes mint their NFTs from a limited amount. The project usually has a start date, and anyone interested can race to cast their own NFT from the limited supply. Once the upper limit is reached, there is no more.
The standard coin price of each collectible usually fluctuates between 0.02ETH and 0.08ETH. Once these NFTs are all cast, they can only be purchased on secondary markets such as OpenSea. Bored Apes sold their 10,000 unique apes for 0.08 ETH each. Since its launch, the price in the secondary market has far exceeded the selling price of 0.08 ETH.
OpenSea witnessed an explosive growth in its usage in 2021. This secondary market provides various configurations for NFT transactions. The creators of NFTs can even include royalties in their projects, so that their NFTs can get a share of the transaction every time their NFT is traded. In addition, OpenSea supports various types of sales. Fixed price and variable style auctions are the most popular.
The usage surged in July, and the usage in August is now also increasing. If usage continues to grow at this rate, it is expected that the usage will hit a record for the month; this chart looks silly, but it reflects 8 In just a few days, Open Sea completed a running rate of USD 100 million in USD transaction volume. How many times have you seen this degree of growth?
This crazy growth of OpenSea is driven by huge user growth and broad interest in the field. In July, 63,000 addresses interacted with OpenSea. In the three days of August, 28,000 addresses have interacted with the exchange. Based on the number of addresses interacting with OpenSea, explore the explosive growth of NFT interest in the past three days below. For comparison, the popular DEX Sushiswap had 34,000 addresses interacting with it throughout July.
NFTs in the game
In other areas of explosive growth… In the past few months, crypto games have begun to emerge, and the market value of Axie Infinity’s Token$AXS has grown from $200 million to a market value of $2 billion during July. It does this because its base game has gained a large number of users.
The gameplay of Axie Infinity is very similar to Hearthstone and Pokemon. Players use their collected Axies with different characteristics to compete. Before the game, players rank their Axies. In the game, players choose when to allocate energy to their Axies. Then, Axies throws skills at the opponent. These skills are oriented according to the position set before the game (thanks to Axie scholar FluctusLux for the explanation).
From the gas usage throughout May/June, we can see the signs that the project has been adopted. In July, it continued its historic growth, with its peak daily active users exceeding 250,000, and 30-day trading volume of playable characters (axies) in the game exceeded $500 million.
Source: dappradar Axie Infinity layout
The exchange of Axie NFT on the secondary market is also explosive. The 30-day transaction volume of OpenSea and Axie Marketplace has exceeded 700 million U.S. dollars, more than 230,000 traders and 1.4 million cumulative sales.
Source: dappradar Axie Infinity layout
Various other games have also been announced or launched recently. “Parallel” is another popular game that recently launched the first batch of cards for its upcoming card game. These cards are special early running cards with unique designs. The same cards will be available for purchase in the future and used in the game, but they are not as fancy as the original cards. Come to think of it, this is like trading a holographic fire-breathing dragon and a normal fire-breathing dragon (explanation from @DefiDuck_Karoo). Holographic cards have higher value due to their rarity and status.
We can expect more and more NFT projects to continue to be launched, with different legitimacy and endurance. Art and culture are developing rapidly, and the interesting NFT of today may soon be forgotten by tomorrow. Although we cannot quantify the status, we can quantify the price, transaction activity, number of holders, community size, and try our best to understand the needs of the entire NFT space.
The existence of NFT is closely integrated with the DeFi culture. If we ignore it, it is negligence. Increasing interest in NFT, like any other use on the network, is a reasonable catalyst for the price of ETH. How the capital flows from DeFi <–> ETH <–> NFTs, no one can tell.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/behind-the-rebound-of-eth-explosive-growth-of-nft-and-games/
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