23 February, 2024

NFT Trading Dynamics: Ethereum Overpowers Bitcoin as the Largest NFT Blockchain

2 weeks ago

13 Feb, 2024

  • The NFT trading landscape shifted in Dec 2023; Ethereum’s dominance declined, with Bitcoin leading at 42.1%.
  • Solana staged a remarkable comeback, securing 18.7% market share with $0.36 billion NFT trading volume.
  • Fashion brands embrace NFTs, leveraging digital tech for innovative customer experiences, transcending physical product boundaries.

Reports from Goingecko suggest that the NFT trading landscape witnessed a significant transformation in December 2023. The total trading volume across the top 10 NFT blockchains amounted to $11.8 billion for the year, marking a decline from the $26.3 billion recorded in 2022 across the top 8 chains.

The largest contributor to this shift is Ethereum, historically the predominant NFT blockchain. With a market share of 72.3%, Ethereum commanded a trading volume of $8.54 billion in 2023. This, however, signifies a decline from its 90% dominance in 2022, as it conceded ground to both Bitcoin and Solana.

Bitcoin emerged as the second-largest NFT blockchain, securing a 12.9% market share and a trading volume of $1.5 billion in 2023. The introduction of Bitcoin Ordinals played a pivotal role in positioning Bitcoin as a major player in NFT trading.

Together, Ethereum and Bitcoin monopolized a substantial 85.2% of the NFT trading volume. Following closely, Solana claimed the third position with a 7.4% market share, while others like Immutable X, Polygon, BNB Chain, Flow, Arbitrum, Avalanche, and Ronin held smaller shares.

December 2023 witnessed a noteworthy reversal, as Bitcoin outstripped Ethereum to become the leading NFT blockchain. The $0.81 billion trading volume for Bitcoin translated to a 42.1% dominance, fueled by the surge in Bitcoin Ordinals trading volume, particularly in November and December.

Bitcoin’s trading volume experienced a staggering growth of 1,495% between Q3 and Q4 of 2023, skyrocketing from $0.08 billion to $1.20 billion. Meanwhile, Ethereum faced challenges, managing a 34.6% market share with $1.41 billion in trading volume, experiencing a decline from $0.94 billion in January.

As Ethereum’s dominance faced a formidable challenge, Solana staged a remarkable comeback in 2023. With NFT trading volumes reaching $0.36 billion in December, Solana secured an 18.7% market share, attributing its success to collections like Mad Lads and Tensorians.

Solana’s NFT trading volume demonstrated a noteworthy growth of 541% between Q3 and Q4, showcasing its resilience and outperforming many other blockchains in terms of quarter-over-quarter growth. Avalanche and Bitcoin emerged as the only contenders surpassing Solana’s remarkable growth, boasting 1,508% and 1,495% increases, respectively.

In recent years, the fusion of fashion and digital technology has taken a significant leap forward, particularly with the adoption of non-fungible tokens (NFTs) by major global apparel brands. This trend highlights a strategic shift in marketing approaches, aiming to deepen brand loyalty and create innovative customer experiences that transcend the boundaries of physical products.