Ethereum gas consumption attributed to NFT marketplaces and projects has declined sharply since 2021, indicating decreased NFT trading activity but increased holding behavior.
NFT Mania Drove Gas Usage in 2021
In 2021, the surging popularity of NFTs led to substantial Ethereum gas usage, with NFT platforms and projects frequently topping the charts of largest gas consumers.
Data from blockchain explorer Etherscan showed NFT gaming ecosystem Axie Infinity ranking #2 in gas usage on August 4, 2021 due to its Ronin bridge transferring assets between blockchains. Meanwhile, leading NFT marketplace OpenSea held the #4 spot the same day.
The high gas usage resulted from booming NFT trade volumes and minting activity at the market’s peak. But as the market cooled, so did the gas appetite.
Trading Activity Slows Amid 2022 Crypto Winter
Data from Nansen showed NFT marketplaces accounted for just over 3% of total gas consumption in May 2022, even amid rising gas costs. This decline came as trading activity slowed.
Some speculated the 2021 gas usage resulted from pandemic excess liquidity rather than sustainable organic interest. Either way, as speculation faded and crypto winter hit, NFT marketplace gas usage plunged.
NFTs are Now a Blip on Ethereum’s Gas Meter
Today, gas consumption from top NFT marketplaces like OpenSea, Rarible, and LooksRare combined equates to just 1.85% of total Ethereum gas usage.
Former top gas users OpenSea and Axie Infinity no longer rank among the top 50 contracts consuming Ethereum gas. Only NFT platform Blur cracks the top 30 currently.
This suggests decreased trading activity but increased holding behavior. As market conditions chilled, investors kept NFTs in wallets rather than regularly trading them.
What Does the Decline in Gas Usage Indicate?
The massive drop in Ethereum gas consumption points to two primary trends:
-Slowing trade activity as speculative euphoria dissipates
-Shift to longer-term NFT holding rather than active flipping
This indicates a market maturing from short-term hysteria to more sustainable foundations focused on building real utility.
Final Takeaways
The plunging gas usage highlights the NFT industry is entering a new phase focused on tangible value over hype-driven speculation.
Key takeaways include:
-Less flipping means more long-term collectors emerging
-Declining gas shows decreased minting and trading activity
-Utility and community will define winners rather than marketing alone
-Maturing markets require patience but produce stability
The NFT space continues evolving. While diminished gas usage signals decreased activity, it also marks a critical maturation.
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