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The recent surge in interest in NFTs has been well-documented. Engagement and traffic have remained steady, whether it is Ethereum-based Crypto Punks or BSC’s CryptoBlades game. This has spurred the growth of an entirely new market.
While activity is bringing eyes to this new form of asset, it is also generating massive sales. In fact, according to data, in the month of August alone, total sales volume worth $5 billion was recorded. That is a whopping 1103% increase month-over-month from July.
A total of 5.6 million NFT sales were registered, increasing by 22% from the numbers seen in July.
A consistent revenue stream for Ethereum?
Axie Infinity, an online game, and OpenSea, a platform for the sale of NFTs, are now two of the most popular projects on Ethereum. The rise of these two different entities has been swift, with Axie averaging more than 1 million daily users in August, becoming the most valuable NFT collection in the space.
While Axie Infinity was keeping an eye on the gaming industry, OpenSea had a different purpose in mind: to make it easier to trade the majority of these NFTs. Furthermore, according to Dappradar, the marketplace saw trading volumes of more than $3.4 billion in August alone.
While these stats are intriguing, they are also quite general statistics. However, when Axie Infinity and OpenSea were combined, they accounted for 87 percent of Ethereum revenue in August.
Both firms generated $355 million and $78 million, respectively.
Is such a revenue stream sustainable?
Now, for Ethereum, the income boost in August was enormous.
Ethereum was in the $3200-$3400 band for the longest time without registering any corrections before moving on to the $4000 range. The steady revenue stream provided market strength to ETH’s price structure, and the plot could have been very different if NFT sales had not occurred.
Ethereum is now a two-way street in terms of sustainability. It is critical to recognise that NFTs are extremely non-liquid assets that are currently experiencing a collective high due to market hype and interest. Interest in new tokens, services, or dApps fades quickly in the cryptocurrency business, as it does with all new tokens, services, or dApps.
However, the NFT marketplace is unique in that it is not limited to gaming. When it comes to giving artists and other innovators more financial independence, there is immense future potential. The erratic nature of revenue generation could also be a result of increased competition.