In a world where cryptocurrencies are having great success. In fact, interest in NFTs is increasing, whether it’s Ethereum-based Crypto Punks or BSC’s CryptoBlades game. Thanks to these new digital assets, a new market has formed and is developing. This new digital asset is generating a large flow of buy and sell trade.
A trading volume of 5 billion dollars was recorded in the month of August alone. This huge increase marks a + 1103% compared to the month of July. In terms of sales, there were 5.6 million NFT sales transactions, up 22% from July.
Huge revenue stream for Ethereum
Ethereum, through its main projects Axie Infinity and OpenSea has generated very high revenues. Axie Infinity is an online game on the Ethereum network, while OpenSea aims to facilitate exchanges. In August, Axie registered over 1 million users per day on the network, confirming itself as one of the most popular NFT collections.
OpenSea has set itself the goal of creating a market to facilitate NFT exchanges in the crypto world. According to Dappradar’s surveys, this market generated trading volumes of over $ 3.4 billion in August.
For Ethereum, these two projects generated 87% of its revenue in August. There is talk of $ 355 million for Axie Infinity and $ 78 million for OpenSea.
Ethereum does not go beyond $ 4,025. Is the hype about NFTs fading?
Ethereum’s August revenue was very high. The quote is no more than $ 4,025, so the dream of $ 4,380 is still a long way off. From last week’s high, there is a loss of around 15%, but the week is not over yet. The revenues from the two Ethereum projects have given strength and momentum to its listing.
This may not happen in the future if NFT sales go down. However, it must be considered that NFTs are not very liquid assets and that they are spreading thanks to the interest shown by the market. This interest from the crypto community could fade at any moment.
Returning to the technical analysis, there could be a correction of the Ethereum price on the 21-period average. Currently, the average sits in the vicinity of $ 2,740.93. Holding this support would push the price higher. For a strong upside, the price is expected to break $ 3,822.62, but with high trading volumes.
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This article was originally posted on FX Empire