- NFTs are making fewer headlines, does it mean the market is running dry?
- Recent trends show that NFT adoption is still rising.
- However, creators are moving to less popular but more eco-friendly platforms.
The non-fungible tokens (NFTs) craze seems to have stalled. In fact, the popular digital asset class has been making fewer and fewer headlines lately.
However, the NFT market seems to be thriving despite the lack of media attention. This is according to a recent report by Nasdaq.
In fact, more and more celebrities and artists are starting to see the value in creating NFTs. This increase in adoption has been partly fueled by the ongoing COVID-19 restrictions. As such, for most artists, the less active social scene has led to a fall in revenue. To mitigate this, artists are turning to NFTs to make some money while engaging with fans.
However, it seems more and more NFT creators are opting to use less popular, but more eco-friendly platforms. This is based on a report by NonFungible.com. The report states that the number of NFT related sales and wallets on Ethereum has gone down. This could be because crypto has been under fire lately for its negative environmental impact.
Specifically, Bitcoin’s Proof of Work (PoW) protocol requires an excessive amount of energy to add new blocks and mine new coins. The issue took a serious turn after Tesla CEO Elon Musk reported that his electric car brand would no longer be accepting bitcoin payments. As a result, the environmental impact of crypto was prominently thrust into the spotlight. it seems most celebrities are looking to reduce their NFT carbon footprint.
Since then, Tezos based NFT platform Hic Et Nunc has displaced Ethereum-based OpenSea based on daily active users. In addition, Hic Et Nunc has minted over 100,000 NFTs from 7000 artists since its launch in May. Notably, Tezos uses the Proof of Stake (PoS) protocol which uses a minute fraction of its PoW counterpart.
Although the migration to more eco-friendly platforms may not be due to Musk’s comments, the trend is there nonetheless. In response, some platforms in the ETH ecosystem have started using carbon offset credits, for instance, making social and environmental responsibility part of their appeal.