Just when you thought NFTs had died, a revival of Bitcoin coincided with a revival of non-fungibles. This is all the more obvious when you consider that large NFT collections, particularly the CryptoPunks range, have been on the rise recently.
As reported by Tech Crunch, data from NFT industry aggregator CryptoSlam shows that CryptoPunks’ lifetime revenue has reached a staggering $ 1.1 billion. That came in at $ 637 million in the past four weeks.
That brings the average selling price of a punk to 35.13 ETH ($ 111,853). Not bad when you consider that Larvalab’s creators made these available for free when it launched in June 2017.
All of this begs the question of whether CryptoPunks and NFTs in general are trapped in a bubble. But how could this affect the rest of the industry without showing signs of a slowdown in digital art or the broader crypto market?
What are CryptoPunks NFTs?
CryptoPunks is a collection of 10,000 collectable characters stored on the Ethereum chain. Each is a 24 × 24 8-bit pixel art image that is algorithmically generated to be unique.
Most are described as “punk looking” people, but there are rarer species, including monkeys, zombies, and aliens.
“The CryptoPunks are 10,000 uniquely generated characters. No two are exactly alike, and each of them can officially belong to a single person on the Ethereum blockchain. “
As one of the earliest examples of NFTs, many consider them to be somewhat groundbreaking when it comes to paving the way for digital blockchain art.
The most expensive sale in recent times was on August 24th when # 7252, described as a zombie with a chin strap, earrings and crazy hair, went for 1,600 ETH ($ 5.33 million).
The resurgence in cryptocurrency prices, coupled with the crypto-rich’s desire to diversify their holdings without switching to fiat, has not only propelled CryptoPunks up, but NFTs in general are experiencing a valuation boom as well.
According to @fintechfrank, the price of NFTs continues to rise with a current average retail price of $ 63,700.
Source: @fintechfrank on Twitter.com
Ethereum gas fees are becoming a problem again
While many platforms offer NFTs, including Theta, Tezos, and Axie Infinity, Ethereum still remains the dominant platform for non-fungible tokens.
Unfortunately, rising NFT activity is clogging the Ethereum network, causing high gas prices to return.
Since noticing a local low of 40.4 gwei on August 21, gas prices on the Ethereum network have risen to a 14-week high of 121 gwei last Friday.
While that’s still a long way from the peaks of 500 gwei seen in “DeFi Summer” last year, the overriding thought is that we could go back to those prices.
With Cardano nearing the adoption of smart contracts and promising cheaper transaction fees, could NFTs be the straw breaking Ethereum’s back?
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