- NFTs become a great advantage to bring more attention to the Ethereum ecosystem.
- It is quite possible that, little by little, such attention could leak into the DeFi sector.
We cannot deny that the NFT market is powerfully drawing the attention of millions of people and attracting a lot to the Ethereum ecosystem, despite the high fees and network congestion. But if we have to look at the gas consumption rankings, the NFT projects rank above the rest. That is why today we are going to answer the question:What’s next for DeFi? This is all you need to know.
The continued growth of NFT
OpenSea was one of those responsible for bringing attention to the ecosystem, from a retail to an institutional perspective. In August, they reached 150,000 new users.
To compare things a bit, Uniswap achieved 183,000 users in the same period of time. However, there is less daily business activity compared to active OpenSea users. Basically Uniswap merchants are less active and do less NFT transactions.
OpenSea users have achieved an impressive volume of operations. The volume made for the month of August is at more than $ 3.3B.
As of August, Uniswap earned $ 50.6B, despite losing the lead in gas consumption to OpenSea. OpenSea finished very strong on the 29th topping the $ 300M mark. For comparison, Uniswap made $ 1.3 billion on the 28th. The 7-day median volume for OpenSea stands at $ 223 million, which is an impressive increase for NFT’s leading aftermarket.
Obviously these volumes are due to speculation and the prices of many NFT collections, led by Cryptopunks or Bored Apes; both have seen their prices and sales increase by 400% during the month.
Cryptopunks are the largest collection in existence with an estimated total value valued at billions of dollars, while Bored Apes is approximately $ 1 B. We must bear in mind that the total valuation of a collection is not so simple, since not all the pieces are for sale.
Is the power of NFTs turning to DeFi?
It is reasonable to think that as retail and institutional users move their assets from centralized exchanges to their personal on-chain wallets to acquire NFT, it is quite possible that such assets interact with DeFi.
This is because users may need to exchange on-chain assets between ETH and stablecoins in order to transact in the NFT market.
The story begins with exchange balances, where Ethereum has now invested in Bitcoin to achieve a low percentage of supply of coins on exchanges for the first time since the beginning of 2019.
If we have to look for examples of this we can see the purchasing power of NFT, the constant search to improve performance in DeFi protocols and the number of game projects like Axie Infinity.
On the other hand, Bitcoin on exchanges remains simple and flat, there is little incentive to deploy such assets outside of centralized exchanges or cold storage.
Basically while OpenSea stay ahead relentlessly for NFT, Cryptopunks and Bored Apes Yacht Club (BAYC) manage to find minimum prices that are incredibly high, starting from $ 130,000. Other NFT projects continue to appear with great success.
DeFi shows that it has a renewed appetite for risk. However, it is still largely driven by stablecoin lending, rather than token speculation.