The non-fungible token (NFT) market is one of the fastest growing, with total sales of NFT in the first half of 2021 reaching $ 2.5 billion. While NFTs aren’t new as a concept, the 2021 bull run has surely put it in the limelight. It all started with digital artist Beeple whose NFT artwork grossed $ 69 million and as a result many celebrities like Eminem, Floyd Mayweather, Beyonce, etc. have joined the NFT mania.
The most popular blockchain for creating NFTs is Ethereum (ETH) due to its smart contract capabilities which are used to digitally verify real world memories. However, the problem of gas fees on Ethereum has not only affected Defi users and spot traders, even small artists and NFT traders have faced a similar problem. From minting an NFT to selling it, very high transaction costs can be incurred at the current price of gas. All eyes are now on London Hardfork to get rid of the growing problem of gas charges with the implementation of EIP 1559.
– Ned (a) 👻 (@nednedii) May 30, 2021
The next London Hardfork scheduled for August could save the life of the NFT ecosystem and help it grow 10 times in a manner quite similar to the Defi ecosystem.
London Hardfork could potentially help NFT artists become bigger
Gasoline charges are not an issue for artists who sell their works for hundreds of thousands of dollars, but the number of these artists is very fractional compared to the overall NFT market. These are mostly small artists with limited resources and income, and the same goes for small NFT collectors. High gasoline costs can eat away at any possible chance of profit.
– ꧁ ༒ 🌹❤️𝐿𝒶𝒹𝓎 𝑪𝒂𝒓𝒐𝒍𝒊𝒏𝒆 𝑹𝒂𝒅𝒊𝒔𝒉 ༒ ꧂ (@carolineradish) June 28, 2021
The implementation of EIP-1559 at the upcoming London Hardfork promises to create a base price model for gas charges paid to miners instead of miners having the power to decide which transaction to process first. The proposal would also make ETH a deflationary asset, as additional ETH in gas fees would be burned. Once the gas fee issue is resolved, the Defi and NFT markets could experience an uptrend and an explosive rise.
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