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
Ethereum’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 month’s end. The bank cited congestion and high gas fees as the reasons behind the decline.
JP Morgan further expressed concerns if the blockchain’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 Ethereum’s valuation.