NFTs are the most popular assets, while Wrapped Bitcoin growth has stalled

NFTs are the most popular assets, while Wrapped Bitcoin growth has stalled

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March 6, 2022 by Diana Ambolis
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Since July, NFTs have expanded their lead over stablecoins and ERC-20 tokens in Ethereum network transfers, while WBTC generated on the chain has remained stable this month stalling the Bitcoin growth. On Ethereum, transfers of non-fungible tokens (NFT) have overtaken stablecoin and altcoin transfers, while the quantity of wrapped Bitcoin growth (WBTC) has remained largely
Major Difference Between Stablecoin and Bitcoin

Since July, NFTs have expanded their lead over stablecoins and ERC-20 tokens in Ethereum network transfers, while WBTC generated on the chain has remained stable this month stalling the Bitcoin growth.

On Ethereum, transfers of non-fungible tokens (NFT) have overtaken stablecoin and altcoin transfers, while the quantity of wrapped Bitcoin growth (WBTC) has remained largely stable since late last year.

It demonstrates how ERC-721 transfers surpassed stablecoins and altcoins on Ethereum in July and have widened the gap between them since then. ERC-721 is the Ethereum network’s standard for non-fungible tokens.

Since late July, average daily NFT transfers have exceeded 50,000 and have not gone below that level. Daily NFT transfers have surpassed 300,000 for the first time, a 600 percent rise since July.

On the other hand, ERC-20 token transfers, including altcoins and stablecoins, have continuously declined since late July. Altcoin transfers have decreased by 39%, from 42,000 to around 30,000. Stablecoins’ transfer has reduced by 25%, from approximately 24,000 in July to 18,000 today.

The statistics speak for themselves: NFTs are more popular than ever. 

According to data from DappRadar, demand for marketplaces to transact NFTs has never been higher.

OpenSea is the market leader in NFT trading volume, with $21.85 billion in value exchanged, but the LooksRare marketplace is threatening OpenSea’s dominance. LooksRare has witnessed $11.6 billion in importance over the last 30 days, compared to OpenSea’s $4.13 billion.

The spread of professional sports and the music industry into NFTs and the growth of virtual real estate contribute to its appeal. Tom Brady, the quarterback of the New England Patriots, raised $170 million on Jan. 19 to help scale his Autograph NFT marketplace. John Legend, the recording artist, developed an NFT platform for musicians to tokenize their work on Feb. 3.

Also, read – What Happened When OpenSea Took Over The NFT Trade?

WBTC supply reaches a stalemate

Since July, WBTC, an ERC-20 coin, has seen a surge in total transactions. Transfers peaked at 557,700 on Nov. 3 after reaching a low of 110,000 daily transfers on Jul. 9. According to CoinMetrics, there are currently approximately 232,000 daily transfers.

WBTC functions similarly to a stablecoin in that its value is pegged 1:1 to that of Bitcoin growth and can be redeemed at any moment for actual BTC.

While the entire quantity of WBTC on Ethereum is close to its all-time high of 271,000, or around 1.4 percent of the total BTC supply, CoinMetrics indicates that the rate of token issuance has slowed significantly since the beginning of February.