What does the decline in NFT gas consumption on ETH mean for the future of NFTs?

Ethereum gas consumption by NFTs has dropped significantly since its high in 2021. NFT marketplaces and projects that occupied top spots in gas consumption at the time have declined sharply in the past two years.

Etherscan’s top 10 contracts or accounts consuming gas on Aug. 4, 2021. Source: The Wayback Machine

Glassnode data shows that gas usage by NFT marketplaces is currently on a downward trend. This indicates a possible shift in terms of NFT use, where more users may be opting to hold on to their assets instead of trading them on marketplaces. In 2021, NFTs were leading the charts in terms of Ethereum gas usage, according to blockchain explorer Etherscan. On Aug. 4, 2021, NFT gaming project Axie Infinity placed second in terms of gas usage due to its Ronin bridge, which transfers assets from Ethereum to the Ronin blockchain. On the same day, NFT marketplace OpenSea was in fourth spot on the list.

Source: Twitter/nansen_ai

Today, gas consumption by NFTs continues its decline. Currently, the gas consumption of Blur, OpenSea, SuperRare, LooksRare and Rarible only account for roughly 1.85% of the gas consumption for the entire Ethereum network.

It is still too early to say what the long-term impact of this decline in gas consumption will be for the NFT market. However, it is clear that the NFT market is maturing and that users are becoming more discerning about how they spend their money!