According to the latest data, the total transaction volume on the NFT platform continued its downward trend in May.
The adjusted figures show that the total on-chain transactions of Bitcoin BTC -0.28% and Ethereum ETH 0.22% fell by 5.3% to $196 billion, with Bitcoin’s on-chain transaction volume falling by 13.3%, while Ethereum’s on-chain transaction volume increased slightly 3.2%.
Adjusted stablecoin on-chain volumes also fell 4.2 percent to $464.6 billion. Additionally, the total supply of stablecoins fell by 1.4% to $122.4 billion.
Among stablecoins, USDT’s market share rose to 68.2%, while USDC’s fell to 22.2%.
In terms of revenue, Bitcoin mining saw a notable increase of 13.7% to $916.6 million, while ETH staking rewards fell 34.5% to $157.2 million. This change in revenue can be attributed to a variety of factors, including changes in market dynamics and network activity.
A significant development in the Ethereum ecosystem is the ongoing deflationary trend observed since January 2023. In May alone, 204,576 ETH was burned, equivalent to approximately $380.1 million.
Since the implementation of EIP-1559 in August 2021, a total of 3.36 million ETH, worth approximately $9.76 billion, have been destroyed. This deflationary mechanism plays a vital role in managing the token supply and maintaining the economic stability of the network.
However, the Ethereum NFT market experienced a sharp decline in May, with transaction volume plummeting 48.7% to $652 million.
Notably, due to its token incentives and unique features, the transaction volume of the Blur platform has surpassed that of OpenSea for the fourth month in a row. Blur’s rise in popularity underscores the growing competition within the NFT space and the influence of innovative platforms on market dynamics.
Industry experts and analysts are closely monitoring these developments as they provide valuable insights into ongoing trends and potential changes in the crypto market.
The reduction in overall deal volume suggests a possible consolidation phase and a temporary slowdown in activity. However, with advancements in scalability, layer 2 solutions, and the continued development of NFTs, the long-term growth prospects of the Ethereum ecosystem remain strong.
