The growing interest in NFTs has been well documented in recent weeks. Whether it’s Ethereum-based Crypto Punks or BSC’s CryptoBlades game, engagement and traffic have been consistent. This has driven the development of a whole new market.
While the activity is drawing eyes to this new form of asset, it is also generating massive sales. In fact, according to data, Only in the month of August, a total sales volume worth $ 5 billion was recorded. That’s a whopping 1103% month-over-month increase since July.
A total of 5.6 million NFT sales were recorded, a 22% increase over July’s figures.
A steady stream of income for Ethereum?
Now, two of the most popular projects on Ethereum have been Axie Infinity, an online game, and OpenSea, a platform where NFT sales are facilitated. The growth of these two separate entities has been rapid, and during the month of August, Axie averaged over 1 million daily users, making it the most valuable NFT collection in the space.
While Axie Infinity looked at the games market, OpenSea had a different goal: to facilitate a market where the majority of these NFTs can be traded. What’s more, according to Dappradar, the market posted trading volumes of more than $ 3.4 billion in August alone.
Now, while these figures sound exciting, they are also fairly general statistics. However, when they came together, Axie Infinity and OpenSea were responsible for 87% of the revenue generated by Ethereum in August.
Both entities generated $ 355 and $ 78 million, respectively.
Is that income stream sustainable?
Now, for Ethereum, the revenue pump during the month of August was significant.
Ethereum consolidated between $ 3,200 and $ 3,400 for the longest time without recording any correction, and then, moved into the $ 4000 range. The steady income stream brought market strength to ETH’s price structure and the plot could have been extremely different without the NFT sales.
Now, from a sustainability standpoint, it’s a two-way street for Ethereum. It is important to understand that NFTs are extremely illiquid assets and are currently at a collective high due to hype and market interest. Like all new tokens or services or dApps, interest is rapidly declining in the cryptocurrency industry.
And yet the NFT market is a bit different, as it is open not just for games. There is huge future potential when it comes to bringing more financial freedom to artists and other developers. Variability in incoming revenue could also be a factor in increasing competition.
This is a machine translation of our English version.
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