NFTs jump to 27% ETH gas usage led by marketplace Blur
NFTs jump to 27% ETH gas usage led by marketplace Blur
The news comes as Blur and OpenSea continue to battle for supremacy in the NFT space, with Blur also overtaking OpenSea in terms of volume.
Cover/illustration via Cryptooshala
A new chart showing Ethereum gas usage by transaction type against a 30-day moving average shows NFTs now make up 27% of ETH gas usage, up from about 15% by the end of 2022.
In Ethereum, gas is a unit of measure that determines the amount of work required to complete a transaction or smart contract on the Ethereum network. The price of gas is expressed in gwei, a subset of ether.
The amount of gas used in Ethereum transactions depends on the type of transaction. For example, simple transactions like sending ether from one account to another require less gas than running complex smart contracts or multi-signature authentication.
NFTs, or Non-Fungible Tokens, are a type of digital asset that represents ownership of a unique item or piece of content, such as a work of art or in-game collectibles. NFTs are becoming more and more popular on the Ethereum network, and according to the latest data, they now account for a significant portion of the total Ethereum gas usage, 27%.
However, a new market competitor has recently turned the NFT market upside down, which analysts point to as the reason for the recent rise in NFT share as a percentage of ETH gas usage.
How Blur Starts Pumping ETH Gas
This week, Blur, an emerging NFT marketplace, reached a milestone by surpassing OpenSea in daily NFT trading volume and has now surpassed UniSwap and Seaport to become the leading gas eater on the Ethereum network.
On Wednesday, February 15, Blur. trade volume reached 6,602 ETH, surpassing OpenSea’s 5,649 ETH for the first time. This achievement led to a surge in Ethereum gas fees due to a surge in trading activity.
In accordance with crunchbaseBlur is valued at $1 billion, funded by Paradigm, Coinbase Ventures and E-GIRL Capital with $11 million in seed funding in its first round in March 2022.
Blur offers attractive benefits to its users, such as zero trading fees, which is a key factor that is likely to increase gas usage.
The platform launched its native BLUR token on February 15 and rewarded its most active users with a token giveaway. The airdrop resulted in a significant increase in Blur’s trading volumes, although the price dropped by 84%. As of yesterday, the platform issued a total of 360 million BLUR tokens, setting an all-time high for its own trading volume of $1.59 billion.
According to DappRadar, Blur outperformed OpenSea in both 7-day ($435.24M) and 30-day trading volume ($711.83M).
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Credit : cryptoslate.com
