NFT Trading Volume Reaches Highest Record but Drop in On-Chain Trading Volume

02/28/2023 05:39 • NFT Newsflash • 151 views

It is reported that according to the February data on the Ethereum chain released by Rebecca Stevens, the data researcher of The Block, the NFT trading volume on the Ethereum chain in February returned to above US $1 billion, setting the highest record since May 2022, of which Blur dominates, but the on-chain trading volume is less than half of that of last May.

In February, the trading volume of Ethereum NFT returned to above US $1 billion, the highest since last May

Interpret the above information:

The popularity of non-fungible tokens (NFTs) continues to soar as the Ethereum chain records a trading volume of over US $1 billion in February 2022, according to data researcher, Rebecca Stevens of The Block. This is the highest recorded volume since May 2022, indicating growing interest in the digital collectibles market.

It is noteworthy that the dominant player in the market is Blur, an NFT platform that allows users to create, trade and sell high-quality digital collectibles. The rise of NFTs in the digital world is also boosting the platform, which has become one of the leading marketplaces for NFTs.

However, despite the increase in trading volume, it is concerning that the on-chain trading volume is less than half of what it was in May 2022. On-chain trading refers to transactions that take place on the blockchain, without the need for intermediaries like centralized exchanges. A drop in on-chain trading volume may mean that fewer people are using the blockchain to buy, sell or trade NFTs.

This may be attributed to the high gas fees on the Ethereum network, which have soared following the surge in demand for NFTs. The fees associated with on-chain transactions make it difficult for smaller transactions to occur, leading to a decline in on-chain trading volume. In recent times, there have been concerns about the environmental impact of NFTs, which may also play a role in the drop of on-chain trading volume.

In conclusion, Rebecca Stevens’ report shows a significant increase in NFT trading volume on the Ethereum chain. The popularity of NFTs and the increasing mainstream acceptance of them as a legitimate form of asset ownership is likely to fuel further growth in the sector. While the drop in on-chain trading volume may be a concern, the market is still in its early stages, and improvements in the technology and infrastructure are likely to address these issues. Therefore, it is essential to keep a close eye on the developments in the NFT market to understand its trajectory better.

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