The Ethereum network’s NFT (Non-Fungible Token) trading volume has seen a significant downturn, with trade counts plummeting by nearly 99.97% from their peak levels. In a surprising twist, decentralized social network Friend.tech has surpassed Ethereum in terms of daily trading volume within the NFT market.
Just two years ago, the NFT market, particularly on Ethereum, was booming within the DeFi space. However, NFT demand has dwindled considerably since then. The current state of the NFT segment on the Ethereum network is raising questions about its health.
According to Santiment’s total NFT trades count metric, NFT demand has seen a substantial decline, especially in the past 12 months. For context, Ethereum recorded approximately 6,444 peak NFT trades on March 19. However, as of the latest data, there were only 13 NFT trades in the past 24 hours.
This data suggests that the NFT trade count has dropped by a staggering 99.97% from its peak levels to its current state. Ethereum’s NFT volumes have slowed to the point where a relatively new social network, Friend.tech, has surpassed it in terms of daily trading volume.
The fact that a newcomer in the social network space is now outperforming Ethereum in NFT demand underscores the significant decline in the NFT segment. NFTs were once a substantial contributor to network activity and fees during the peak of the 2021 bull market.
The decline in NFT activity has also had an impact on Ethereum’s network fees, which have reached an eight-month low, according to Glassnode. The slow market conditions in recent weeks have further exacerbated this trend.
Despite the NFT market’s decline, the Ethereum network has recently seen a surge in daily active addresses, with over 1.05 million active addresses at the time of reporting. This figure is nearly double the number recorded just a few days prior. Notably, this spike in activity follows an increase in transaction volume observed on September 12.
Although Ethereum’s price has seen an increase of almost 4% in the past two days, it’s important to note that the current momentum appears to be limited, as on-chain volume remains within the normal range. Nonetheless, the shift in sentiment appears to favor the bulls, aligning with the increased network activity and positive price action observed.
