Ethereum’s dominance in the NFT sector is at 90
Opalesque Industry Update – According to data presented by CryptoMonday.de, Ethereum accounts for 90% ($645 million) of all NFT trading volumes for the third quarter of 2022.
This dominance is likely due to Ethereum’s well-developed infrastructure and its wide variety of dApps (decentralized applications) that support NFTs. Jonathan Merry, CEO of CryptoMonday, agrees with that analysis.
Speaking about the website’s data presentation, he said: “Ethereum’s share of the market indicates that investors are confident in the platform’s ability to grow and scale. It also has a first-mover advantage, which may be difficult for other projects to overcome.”
A cut above the rest
From its inception, Ethereum has been at the forefront of the NFT revolution. In late 2017, it became the first platform to host an NFT game, CryptoKitties. This game was a huge success and helped popularize NFTs among regular users. It has since become home to a wide variety of NFT games and applications, including Gods Unchained, Decenter, and 0xWarriors.
Other platforms have also started to support NFTs, but none have been able to match Ethereum’s level of activity. For example, Bitcoin’s Lightning Network now supports “colored coins,” which can be used to create NFTs. However, there has been little development in this area and Bitcoin’s Lightning Network currently accounts for a small fraction of all NFT trading volume.
Ethereum dominates NFT sales by a small margin
NFT sales in the 3rd quarter tell a different story than the market share figures. Ethereum is still the dominant NFT chain, but it only represents 26.22% of total NFT sales. This difference is due to exclusive collectibles being disproportionately represented on Ethereum.
On the other hand, Ronin and ImmutableX – two chains that focus on Web3 games and gaming dApps – are emerging as significant alternative markets for NFTs, accounting for 18.81% and 23.12% of total NFT sales, respectively. Flow (17.6%) and Wax (8.4%) round out the top five NFT sales platforms.
Interest in NFTs is still growing
It’s no secret that the NFT market took a beating in Q2. With the collapse of the Terra ecosystem and subsequent CeFi liquidations, trading volume took a 33% hit, falling from $12 billion to $8 billion. Sales also fell, falling 29% from 28 million to 20.23 million.
Q3 continued the trend as trading volume plunged 75% from Q2, coming in at just $2.5 billion. However, on-chain metrics such as sales numbers and growing usage in billionaire industries suggest that there is still a healthy demand for NFTs. In fact, forecasts indicate that Q3 will outgrow Q2 by 6%. The full story and statistics can be found here: Ethereum’s dominance in the NFT sector stands at 90%.
