New research has revealed that the majority of non-fungible tokens (NFTs) owned by whales – large investors who have combined the most options available – account for more than 80 percent of the market. According to research by blockchain analytics platform Moonstream, between April 1 and September 25, 2021, individual investors accounted for less than 20% of the total NFT market on Ethereum.
NFTs are virtual collectibles that use blockchain technology to identify ownership of virtual assets, which can be music, videos, pictures, or any other digital file such as in-game equipment or characters. And during the year, NFTs have been one of the hottest assets in the world crypto space, since when there was a collection Auctioned for $69 million, or more than Rs. 500 crores. But it’s probably no surprise that most of the holdings are concentrated among large investors.
Blockchain analytics platform Moonstream said that its scans of 1,145,767 blocks yielded transfer activity from 9,292 Ethereum NFT contracts to addresses 727,102 for 7,020,950 tokens. as highlighted by report good, these NFT mints and transfers play a vital role in forming the core of the Ethereum dataset.
“Many of them are owners of marketplaces and clearinghouses such as OpenC, Nifty Gateway and other similar platforms,” the report said. There are some NFT whales listed on Ethereum.
While the current distribution pattern NFT Whales on the Ethereum network show an inclination towards wallets, with the report adding that smaller NFT investors are also around, participating in the growth of the space.
“What this data shows us is that Ethereum The NFT market is open in the sense that most of its participants are small-time buyers who make their purchases manually,” the report highlighted.
Currently, 83.29 percent of Ethereum enthusiasts own the remaining 19.02 percent of NFTs available on the blockchain.
with many choices celebrities Like Amitabh Bachchan, Salman Khan and Snoop Dogg, the NFT space is thriving in many parts of the world.
According to market tracker data, NFT sales increased to $10.7 billion (about Rs 79,820 crore) in the third quarter of 2021. DappRadar. This figure is eight times higher than the previous quarter.
The rising sales and steep prices of NFTs – commodities that do not physically exist – have baffled many, but the manifold growth is not showing any depreciation.
On OpenC, the largest NFT marketplace, sales volume reached $3.4 billion (about Rs 25,320 crore) in August and remained strong even in September when global stock markets faltered.
However there are some serious environmental impacts associated with NFTs.
Recently, Chris Hinkle, chief technical officer at US-based TRG Datacenter, stated that the majority of NFTs are part of Ethereum. blockchain Which has been criticized largely because a single transaction has a carbon footprint equivalent to 140,893 Visa credit card transactions.
“Ethereum has promised to cut its energy consumption by 99 percent by the beginning of 2022. As NFTs develop and become more common, it is important that as NFTs grow in popularity, they are our Let’s take steps to protect the environment from further negative impacts,” Hinkle said in a statement. NFT-focused report by TRG Datacenter.