Home ยป Relatively new blockchains leave their mark on the NFT scene

Relatively new blockchains leave their mark on the NFT scene

by LLT Editor
20th Apr 22 11:16 am

Ronin, which accounts for the second largest share of the NFT market, has been around for a little over a year. The blockchain by Axie Infinity was launched in early February last year.

Another new player with impressive performance was Immutable X, which is the first layer 2 blockchain for NFTs on Ethereum. The blockchain was launched in April 2021 and accounts for 1% of the NFT transaction volume, amounting to about $87.3 million. But, there have been increasing announcements of NFT projects migrating to the platform, so Immutable X could well be on its way to a rapid expansion.

The other top-performing blockchain is Flow whose volume of $827 million is 5% of the total transaction volume.

Declining dominance due to network congestion and high gas fees

Ethereumโ€™s dominance on the NFT scene has been declining over the last few months. An earlier report by JP Morgan showed that the dominance levels had dropped from 95% in early Jan to about 80% by the monthโ€™s end. The bank cited congestion and high gas fees as the reasons behind the decline.

JP Morgan further expressed concerns if the blockchainโ€™s dominance continued its downward trend, which is what we are seeing now. The bank argued that a gradual decline in dominance would present more significant issues for Ethereumโ€™s valuation.

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