Cointime

Cointime

Download App
iOS & Android

NFTs Accounted for 28% of the ETH Gas Usage in January

CryptoSlate analysts examined the gas usage shares of different transaction categories on the Ethereum (ETH) network and found that the NFTs category accounted for 28% in the first month of the year.

The analysis divides all transactions on the ETH network into eight categories as Vanilla, ERC20, Stablecoins, DeFi, Bridges, NFTs, MEV Bots, and others.

The second, third, and fourth categories that occupied the most significant gas usage by share appeared as Defi, ERC20, and stablecoins, with 8% for Defi and ERC20 and 6% for stablecoins.

The categories

The vanilla category includes pure ETH transfers between Externally Owned Accounts (EOAs) issued without calling any contracts. The ERC20 class counts all transactions that call ERC20 contracts, excluding stablecoin transactions.

The stablecoins category represents all fungible tokens that have their value pegged to an off-chain asset either by the issuer or by an algorithm. This category includes over 150 stablecoins, with Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and DAI (DAI) being the most prominent ones.

The Defi category covers all on-chain financial instruments and protocols implemented as smart contracts. Decentralized exchanges (DEXs) also fall under this category. More than 90 Defi protocols are represented under this section, including Uniswap (UNI), Etherdelta, 1 inch (1INCH), Sushiswap (SUSHI), and Aave (AAVE).

Bridges represent all contracts that allow the transfer of tokens between different blockchains and includes over 50 bridges such as Ronin, Polygon (MATIC), Optimism (OP), and Arbitrum (ARBI).

All transactions interacting with non-fungible tokens fall under the NFTs category. This section includes both ERC721 and ERC1155 token contract standards and NFT marketplaces for trading them.

MEV bots, or Miner Extractable Value bots, represent bots that automatically execute transactions for profit by reordering, inserting, and censoring transactions within blocks.

All remaining ETH transactions are gathered under the Other category.

Gas usage by category

The chart below represents the relative amount of gas consumed by each category in the ETH network. The chat starts from January 2020 and represents the gas usage share of each category with a different color.

At first glance, the NFTs, Defi, ERC20, Stablecoins, and Vanilla categories stand out as they have the most visible shares in total gas fees.

According to the data, the NFTs category currently accounts for 28% of the total gas fees on the ETH network, which is represented with the orange zone. This category’s share was only around 4% in early May before the pandemic started.

The Defi takes up the second largest share with 8%, represented by the light green area. Both the NFTs and the Defi category recorded an increase in gas fee shares since the pandemic started. The ERC20 category accounts for 8% of the total gas share. Represented by the dark green area, the category’s share halved from 16% in October 2022.

In the meantime, stablecoins’ percentage remained flat, around 5-6%, as can be seen from the dark blue zone as well. Finally, the vanilla category continued to account for around 5% of total gas fees.

Gas usage by NFTs

Looking at the gas usage of the NFTs category in detail, OpenSea appears as dominant. The chart below represents the NFT marketplaces’ share in gas usage since the beginning of 2018.

OpenSea appeared in early 2020 and significantly increased its share in gas usage after mid-2021. It remains the dominant NFT marketplace that occupies enough gas usage to leave a mark on the overall chart, except for a short period in January 2022, where LooksRare accounted for enough gas usage to appear briefly next to OpenSea.

Gas usage by stablecoins

The breakdown of the gas usage share of stablecoins also emphasizes USDT’s dominance. The chart below represents major stablecoins’ gas usage shares from the beginning of 2018.

Even though USDT remains the dominant stablecoin, its share still recorded a significant decrease from 11% to 4%. On the other hand, USDC became visible on the chart in early 2020 and has been growing its share in gas usage slowly but steadily since then.

NFT DeFi
Comments

All Comments

Recommended for you

  • U.S. Congressman Mike Flood: Looking forward to working with the next SEC Chairman to revoke the anti-crypto banking policy SAB 121

     US House of Representatives will investigate Representative Mike Flood's recent statement: "Despite widespread opposition, SAB 121 is still operating as a regulation, even though it has never gone through the normal Administrative Procedure Act process." Flood said, "I look forward to working with the next SEC chairman to revoke SAB 121. Whether Chairman Gary Gensler resigns on his own or President Trump fulfills his promise to dismiss Gensler, the new government has an excellent opportunity to usher in a new era after Gensler's departure." He added, "It's not surprising that Gensler opposed the digital asset regulatory framework passed by the House on a bipartisan basis earlier this year. 71 Democrats and House Republicans passed this common-sense framework together. Although the Democratic-led Senate rejected it, it represented a breakthrough moment for cryptocurrency and may provide information for the work of the unified Republican government when the next Congress begins in January next year."

  • Indian billionaire Adani summoned by US SEC to explain position on bribery case

    Indian billionaire Gautam Adani and his nephew, Sahil Adani, have been subpoenaed by the US Securities and Exchange Commission (SEC) to explain allegations of paying over $250 million in bribes to win solar power contracts. According to the Press Trust of India (PTI), the subpoena has been delivered to the Adani family's residence in Ahmedabad, a city in western India, and they have been given 21 days to respond. The notice, issued on November 21 by the Eastern District Court of New York, states that if the Adani family fails to respond on time, a default judgment will be made against them.

  • U.S. Congressman: SEC Commissioner Hester Peirce may become the new acting chairman of the SEC

    US Congressman French Hill revealed at the North American Blockchain Summit (NABS) that Republican SEC Commissioner Hester Peirce is "likely" to become the new acting chair of the US Securities and Exchange Commission (SEC). He noted that current chair Gary Gensler will step down on January 20, 2025, and the Republican Party will take over the SEC, with Peirce expected to succeed him.

  • Tether spokesperson: The relationship with Cantor is purely business, and the claim that Lutnick influenced regulatory actions is pure nonsense

     a spokesperson for Tether stated: "The relationship between Tether and Cantor Fitzgerald is purely a business relationship based on managing reserves. Claims that Howard Lutnick's joining the transition team in some way implies an influence on regulatory actions are baseless."

  • Bitwise CEO warns that ETHW is not suitable for all investors and has high risks and high volatility

    Hunter Horsley, CEO of Bitwise, posted on X platform that he was happy to see capital inflows into Bitwise's Ethereum exchange-traded fund ETHW, iShares, and Fidelity this Friday. He reminded that ETHW is not a registered investment company under the U.S. Investment Company Act of 1940 and therefore is not protected by the law. ETHW is not suitable for all investors due to its high risk and volatility.

  • Musk said he liked the "WOULD" meme, and the related tokens rose 400 times in a short period of time

    Musk posted a picture on his social media platform saying he likes the "WOULD" meme. As a result, the meme coin with the same name briefly surged. According to GMGN data, the meme coin with the same name created 123 days ago surged over 400 times in a short period of time, with a current market value of 4.5 million US dollars. Reminder to users: Meme coins have no practical use cases, prices are highly volatile, and investment should be cautious.

  • Victory Securities: Funding Rates halved and fell, Bitcoin's short-term direction is not one-sided

    Zhou Lele, the Vice Chief Operating Officer of Victory Securities, analyzed that the macro and high-level negative impact risks in the cryptocurrency market have passed. The risks are now more focused on expected realization, such as the American entrepreneur Musk and the American "Efficiency Department" (DOGE) led by Ramaswamy. After media reports, the increase in Dogecoin ($DOGE) was only 5.7%, while Dogecoin rose by 83% in the week when the US election results were announced. Last week, the net inflow of off-exchange Bitcoin ETF was US$1.67 billion, and the holdings of exchange contracts and CME contracts remained high, but the funding rates halved and fell back, indicating that the direction of Bitcoin in the short term is not one-sided, and bears are also accumulating strength.

  • Coindesk ·

    Careers in Crypto: 5 Insights for 2024

    In an overwhelming job market, leaning into personal networks and connections are more important than ever. Emily Landon, CEO of The Crypto Recruiters, outlines what is happening in the crypto job market and how you can position yourself or your company in 2024.

    Careers in Crypto: 5 Insights for 2024

  • Cointime August 10th News Express

    1. The U.S. Internal Revenue Service has released a new draft of the crypto tax form, which no longer requires filling in wallet addresses and transaction IDs

  • Adidas and Doodles collaborate to launch a limited edition NFT collection pack

    Sportswear giant Adidas is collaborating with Ethereum NFT series Doodles to sell virtual gift packages that support buyers in purchasing exclusive physical clothing. Adidas and Doodles stated in a joint statement that these limited edition collectible packages will be available for purchase before August 16th, with two items in each package. The Adidas Originals x Doodles online store shows that the retail price for a single package is $4.99, while the price for 2 to 100 packages ranges from $8.49 to $374.99.Some joint sets include physical collectibles featuring Deysi, the digital mascot in Pharrell Williams and Coi Leray's new song "Not in the Store". These collectibles include Deysi sportswear and Superstar shoes, with each limited to 200 pieces.

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company