Ethereum NFTs take a backseat as this network’s trading volume sees a surge

• Ethereum’s NFT activity indicates dwindling interest.
• Ethereum sees midweek network activity surge reflecting a surge in demand.

Just two years ago, the NFT market was one of the hottest segments in DeFi, with Ethereum as the leading network. Fast forward to the present and NFT demand is a fraction of what once was. But just how bad is the state of the NFT segment especially on the Ethereum network?

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Santiment’s total NFT trades count metric revealed that the demand was down considerably especially in the last 12 months. For perspective, the Ethereum blockchain registered around 6,444 peak NFT trades count recorded on the Ethereum blockchain on 19 March. Fast forward to the present and the count tallied at 13 in the last 24 hours at press time.

Source: Santiment

Based on the above data, it could be stated that the NFT trade count was down by 99.97% from its peak levels to its current levels. NFT volumes on Ethereum also slowed down so much that the decentralized social network Friend.tech managed to overtake it in terms of daily trading volume.

.@friendtech keys daily trading volume exceeded that of total NFT trading volume on Ethereum for the 3rd time since the decentralized social media app’s launch. On Sept 9, daily trading volume for https://t.co/ZhbqCaclRK keys was $12.3m, while daily NFT trading volume was $9.2m. pic.twitter.com/eOMtJNfVN8

— Galaxy Research (@glxyresearch) September 12, 2023

The fact that a relatively new social network is now outclassing Ethereum’s NFT demand is a testament to just how much the NFT segment has fallen. Note that it was one of the segments that contributed a significant amount of network activity and network fees during the height of the 2021 bull run.

The Ethereum network fees also took a hit now that NFT activity was almost non-existent. Things have also been exasperated by the slow market conditions in the last few weeks. According to Glassnode, Ethereum’s median gas fee stood at an eight-month low.

? #Ethereum $ETH Median Gas Price (7d MA) just reached a 8-month low of 16.018 GWEI

Previous 8-month low of 16.061 GWEI was observed on 11 September 2023

View metric:https://t.co/6QGDfZoULY pic.twitter.com/B8uK3pTk1Y

— glassnode alerts (@glassnodealerts) September 13, 2023

Ethereum registers a surge in network activity

As far as the latest developments were concerned, the Ethereum network saw a sizable spike in the number of daily active addresses in the last 24 hours. The daily active addresses peaked at $1.05 million at press time which was almost double the number of active addresses recorded on Tuesday (12 September).

Source: Santiment

Interestingly, the network registered less than 343,000 daily active addresses on 10 September. Furthermore, what was worth noting was that the spike in the last 24 hours followed the surge in transaction volume observed on Tuesday (12 September).

How many are 1,10,100 ETHs worth today

ETH’s price action was up almost 4% in the last two days. This indicated that the observed spike in network activity could be bullish. However, the current momentum appears limited considering that the on-chain volume observed in the last five days was still within the normal range.

Nevertheless, there was a sentiment shift in favor of the bulls which was in line with the surge in network activity and bullish price action so far.

Source: Santiment