After all of the highs surrounding NFTs for most part of the year, the nascent crypto niche is witnessing a downturn in its trading volume which is currently at a three-month low.
However, despite the belief of some analysts that the space is currently in a bear market, OpenSea, the largest NFT marketplace, has contributed to around 10% of all Ether burns since the launch of EIP-1559.
OpenSea leads Ethereum burning
According to data from ultrasound.money, around 900,000 ETH have been burned and OpenSea, alone, has led to the burning of over 100,000 ETH.
The marketplace became a top-tier coin burner months ago when its burning rate rallied around August due to the uptick in interest in the NFT space. But despite the falling numbers of its trading volume recently, it has been able to maintain its lead as over $400 million of Ether has been burned via the platform.
In previous times, this burned ETH would have been paid to miners who might eventually choose to sell these assets via crypto exchanges thereby leading to an excess supply of the coin. However, with EIP-1559 in play, those coins are being burned and analysts have predicted that Ethereum could become deflationary in the coming year due to its current burn rate.
Bored Ape NFTs sales multiply by 10x
While the general NFT market might currently be in a rut, some projects in the space like the Bored Ape Yacht Club (BAYC) are still performing well.
Per Dune Analytics, the trading volume of Ethereum on OpenSea before November 15 was less than $50 million, however, immediately the selling volume of BAYC NFTs rallied by 900%, the trading volume of ETH on the marketplace more than doubled to $105 million.
— jimmy fallon (@jimmyfallon) November 12, 2021
The interest in the NFT project rose due to the new interest of celebrities like Jimmy Fallon who changed his profile picture to a Bored Ape NFT. Another reason for the growth could be tied to the new partnership signed with Universal Music Group who would be forming a metaverse band called Kingship.
Get an edge on the cryptoasset market
Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.
Join now for $19/month Explore all benefits
Like what you see? Subscribe for updates.