#Is the NFT Craze Fading? Ethereum Network NFT Trading Plummets by 85%

04/26/2023 12:33 • Tech Ticker • 115 views

On April 26th, according to data released by blockchain research company Messari, the number of independent users on the Ethereum network NFT trading platform decreased from approximately 28000 to only about 5000, a decrease of approximately 85%, in approximately two months from March 1st to April 20th.

Messari: The number of users on the Ethereum NFT trading platform has decreased by approximately 85% in the past two months

##Introduction
In the world of blockchain, NFTs have emerged as a hot topic in recent months. The decentralized nature of the blockchain network has allowed for unique and original pieces of digital art to be created and sold. Particularly for artists, the opportunity to achieve ownership, proof of authenticity, and ways to monetize their work have been a game-changer. However, recent data has shown a decrease in independent users on the Ethereum network NFT trading platform. The number dwindled from 28,000 to only 5,000, an approximate 85% decrease in two months.
##What is an NFT?
An NFT or non-fungible token is a digital asset verified on the blockchain. NFTs are non-interchangeable, unique files that are indivisible and cannot be exchanged like cryptocurrencies. They are different from regular currency because they represent more than just a means of exchange or a store of value—they represent something unique and one of a kind. NFTs can be used to verify ownership of digital content, including video game items, music, art, and even tweets.
##The Rise of NFTs
The NFT market has exploded in recent months, with record sales of millions of dollars for digital art, tweets, and memes. NFTs have become a desirable way for collectors to invest in digital art while creators earn revenue in the short and long term. The Ethereum network is one platform that has been responsible for the sale of the greatest number of NFTs to date.
##The Decrease in Independent Users on the Ethereum Network
In March, the Ethereum network’s independent users reached around 28,000, bolstered significantly by the sale of Beeple’s digital art piece for $69 million. However, according to data recently released by blockchain research company Messari, the number decreased to only 5,000 by April 26th, an approximate 85% drop in just two short months.
There are a few possible reasons for this sudden decrease in the number of independent users on Ethereum. For instance, some have argued that the market for NFTs has become too saturated too quickly, and maybe bubble-like in nature. Others contend that the high fees associated with transaction processing and gas fees may have driven away potential buyers.
##Conclusion
Whatever the reason may be, the significant dip in independent users on the Ethereum network NFT trading platform is a cause for concern for those involved in the digital art world. However, with the rise of more beginner-friendly platforms like YouTube and Twitter looking to integrate NFTs, the potential for the creation and sale of digital content remains bright.
##FAQs
###1. What is a non-fungible token (NFT)?
A non-fungible token (NFT) is a digital asset verified on the blockchain. NFTs are unique, non-interchangeable files that represent something unique and one of a kind.
###2. What is the Ethereum network?
The Ethereum network is a decentralized platform that enables smart contracts and decentralized applications (dapps) to run without any downtime or fraud.
###3. Why has the number of independent users on the Ethereum network NFT trading platform decreased?
The decrease in independent users on the Ethereum network NFT trading platform may be attributed to several factors such as high transaction fees and gas fees, saturation of the NFT market, and a possible bubble-like phenomenon.
##Keywords
NFT, Ethereum network, Messari, Digital Art, Blockchain, Independent Users, Transaction Fees, Gas Fees.

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