The Ethereum gas consumption landscape is transforming significantly as non-fungible token (NFT) markets no longer dominate network gas usage. according to a report Per Nansen, a crypto analytics platform, NFTs have been left behind in taking full advantage of Ethereum gas fees.
In particular, while Ethereum’s transition to proof-of-stake, in an event known as “The Merger,” is expected to address high gas prices, investors are now exploring alternatives like Cardanowhich has higher profitability after its recent hydra upgrade.
Ethereum gas consumption change
According to data revealed by Nansen on Friday, there is currently a noticeable change in Ethereum’s gas consumption patterns. Once in first place, NFT markets now account for just 3% of total gas usage.
Surprisingly, the Uniswap decentralized exchange (DEX) has become the top gas consumer, accounting for 31.99% of gas consumption. This change signals a diversification in Ethereum transactional activity and a reduction in NFT-related gas usage. Nansen noted:
Gone are the days when NFTs topped the Ethereum gas consumption charts. This week, of the top 20 gas consumers, OpenSea and Blur accounted for less than 10% combined. And against all gas consumers, the NFT markets were just over 3%. Uniswap, by contrast, was 10 times as much: 31.99%.
This substantial decline in NFT-related gas consumption can be attributed to several factors, including network congestion caused by an influx of meme coin trading, in particular, the recently hyped PEPE frog-themed meme coin.
This increase in meme coin transactions resulted in rising gas prices, prompting users to explore alternatives and easing the burden on NFT markets.
Navigating the gas crisis
The Ethereum gas crisis has persisted despite The Merge, which is said to improve scalability and lower gas fees by migrating the network to a proof-of-stake consensus model. In response, some investors have sought solace in blockchain platforms that offer profitable alternatives.
With its recent Hydra upgrade, Cardano has gained attention for its ability to handle transactions more cheaply. The implementation of Hydra’s layer 2 scaling solution has positioned Cardano as a viable option for users seeking relief from high Ethereum gas prices.
The recent decline in gas consumption from NFT markets marks a significant turning point in the Ethereum gas crisis. As decentralized finance (DeFi) protocols and other heavy transaction platforms take the lead in gas consumption, the burden on the NFT markets has lessened.
However, the Ethereum community in general anticipates the deployment of updates to the mainnet to address persistent gas issues and improve scalability on the network.
Meanwhile, The Ethereum price has experienced an upward trend in the last week, with an increase of 2.4%. ETH has risen from a low of $1,771 seen last Friday to trade above $1,800 later this week.
The Ethereum market capitalization has also posted huge gains in the last 7 days. ETH’s market capitalization has risen more than 2% from a low of $215 billion to a high of $218 billion on Friday. Meanwhile, ETH’s daily trading volume has plummeted over the week from a high of $10 billion last Friday to $5.5 billion in the last 24 hours.
Interestingly, the asset has picked up from where it left off, rallying 1.1% in the last 24 hours. ETH is currently trading slightly above $1,800 with a price of $1,811 at the time of writing.
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