Only a handful of Ethereum whales own the majority of the NFTs: report

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New research has found that the majority of non-fungible tokens (NFTs) are owned by whales – large investors who have tied up most of the options available – which make up over 80 percent of the market. According to a study by the blockchain analytics platform Moonstream, individual investors combined made up less than 20 percent of the total NFT market on Ethereum between April 1 and September 25, 2021.

NFTs are virtual collectibles that use blockchain technology to identify ownership of virtual assets, which can be music, videos, pictures, or other digital files such as game devices or characters. And later this year, NFTs have been one of the hottest assets in the crypto space since a collection auctioned off for $ 69 million or above Rs. 500 million. But it may come as no surprise that most of the stocks are concentrated with the big investors.

Blockchain analytics platform Moonstream said its scan of 1,145,767 blocks revealed transfer activity for 7,020,950 tokens from 9,292 Ethereum NFT contracts across 727,102 addresses. As the report points out, these NFT coins and transfers play a key role in forming the core of the Ethereum data set.

“Many of these owners are marketplaces and clearinghouses like OpenSea, Nifty Gateway and other platforms of the same kind,” the report said, which lists some NFT whales on Ethereum.

While the current distribution pattern of NFTs on the Ethereum network shows a bias towards whale wallets, the report found that there are also small NFT investors participating in the growth of this space.

“These data show us that the Ethereum NFT market is open in that the vast majority of its participants are small buyers who are likely to make their purchases manually,” the report emphasized.

Currently, 83.29 percent Ethereum enthusiasts own the remaining 19.02 percent of the NFTs available on the blockchain.

With celebrities like Amitabh Bachchan, Salman Khan, and Snoop Dogg among others, the NFT space is thriving in several parts of the world.

NFT’s sales volume rose to $ 10.7 billion in the third quarter of 2021 (roughly eight times the previous quarter.

Rising sales and prices of NFTs – items that physically do not exist – have baffled many, but the multiple growth shows no depreciation at all.

Sales volume on the largest NFT marketplace, OpenSea, reached $ 3.4 billion (approximately Rs.25,320 billion) in August and remained strong in September as global equity markets faltered.

However, there are some serious environmental impacts associated with NFTs.

Recently, Chris Hinkle, chief technical officer of the US TRG data center, said that most NFTs are part of the Ethereum blockchain, which has been heavily criticized for having a single transaction with a carbon footprint equal to 140,893 Visa credit card transactions.

“Ethereum has promised to cut its energy consumption by 99 percent by early 2022. As NFTs evolve and become more prevalent, as they become more popular, it is critical that they take steps to protect our environment from further negative impacts, ”Hinkle said in an An NFT-focused report from TRG Datacenters.

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

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