NFT trading volume nears annual peak after surge in gas prices.
Non-fungible token (NFT) trading volumes on the Ethereum network have reached their highest levels in almost a year.
NFT trading volumes on the Ethereum network have reached their highest levels in nearly a year, driven by a surge in gas prices. According to CryptoSlam, NFT trading volumes are currently at their highest weekly level since February 26, 2023.
The increase in Ethereum NFT volume is attributed to the growing popularity of Pudgy Penguins, the third-largest NFT collection by market cap.
Pudgy Penguins is closing in on the market cap of its competitor, Yuga Labs' Bored Ape Yacht Club (BAYC) collection. Yuga Labs also owns Cyberpunks, the lowest-priced collection.
Pudgy Penguins is a collection of 888 virtual penguins released on the Ethereum blockchain in 2021.
These NFTs have gained widespread popularity due to their unique design and exclusivity.
Pudgy Penguins is currently working on Pudgy World, an interactive gameplay experience that will be available on the Apple Vision Pro. Yuga Labs is also developing the Otherside metaverse, with plans for a third "traveling" test.
Despite the growth in trading volume, on-chain minted NFTs have seen a flat trend over the past year. This suggests that NFT sales have been the primary driver of the recent surge in volume.
The increase in gas prices on the Ethereum network, fueled by the hype around ERC-404 tokens, has also contributed to the rise in NFT trading volume.
On February 9, the average commission on the Ethereum network spiked to 70 Gwei, with peak gas costs reaching 377 Gwei, according to Etherscan. The last time such high gas prices were recorded was on May 12, 2023.
Jerard Bartez
