How will the NFT market react to the Ethereum merger event? – Coinpedia – Fintech & Cryptocurrency News Media
This year, Ethereum turned seven years old, and surprised users with a gift in the form of Ethereum Merge. The long-awaited Ethereum Merge is officially scheduled for September 16. The Ethereum merger will significantly impact the crypto sector, including NFTs and digital collectibles. It is reported that 80% of the total NFTs are traded on the Ethereum blockchain and experienced an eye-popping income due to the NFT hype, including the two most famous NFT collections, CryptoPunks and Bored Ape Yacht Club. Therefore, a question arises for NFT creators, what will happen to millions of NFTs after the merger?
Impact on the NFT market
NFTs are one of the essential sectors of the Ethereum network. After the Ethereum merger, the NFTs will still be in your digital wallet. According to Adam McBride, if the Proof-of-Work fork remains, the user will have two versions of the NFT. One will be the NFT on the previous Proof-of-Work fork and the other will be the Proof-of-Stake NFT after the merge. If all goes well, NFTs will actively work on Ethereum’s recently upgraded mainnet.
The NFT creators and investors may encounter a “replay attack” double transaction, meaning that a transaction may occur on the newly merged PoS fork if a user transacts on the PoW fork. Thus, there is a small chance of compromising the security of NFTs as someone else can access your NFTs or other digital assets and your NFTs can get lost through an unknown transaction you never made.
We can even see price deviations in NFT floor prices because of this. However, we expect that the said impact may not occur, but there is a probability of it and you should be aware of it.
However, there are some good effects as well. The most robust effect will be reduced carbon consumption by up to 90% for the embossing and maintenance of NFTs. In addition, analysts of the cryptosphere predict a skyrocketing increase of Ethereum after the merger, and creating NFTs on the Ethereum network will become more convenient and easier.
Final thoughts
To save NFTs from possible consequences, users are advised to remove the NFTs from sale and transfer them to their new PoS wallets. However, it is not guaranteed that everything will go according to plan; users can take necessary steps to protect their NFTs.
