The second largest blockchain, Ether, officially reached the 1 million unique NFT buyer mark on Sunday, seven years after the first NFT was minted on the Ether blockchain.
As rival ecosystems have seen phenomenal growth that threatens Ether's dominance, the announcement suggests that Vitalik's offspring are still leading the NFT game for now.
According to the latest estimates, the cost of gasoline in Ether has dropped significantly since August 2021, so that the number of NFT buyers on its platform now exceeds 1 million.
Strange ethereum market trends
The fact that Ether's average transaction fees are falling suggests that investors are losing interest in engaging with the ecosystem.
This will be a major obstacle to the revival and progress of blockchain.
On the other hand, it portrays a positive impression of the ease with which people can access and explore the DeFi and NFT domains.
Ethernet milestones do not include fake buyer accounts, but real users with accounts that make purchases on the blockchain.
In addition to the historic event, data from the past 24 hours shows that NFT sales on Ether soared 36.06%, more than any other blockchain with sales of at least $100,000 over the same period.
No longer a lonely market
It is expected that "ethereum killers" such as Solana or Polkadot will overtake ethereum. These projects have also gained traction in the last year, garnering significant investment and public attention.
The second largest blockchain is often criticized for its expensive fees and slow transaction speeds.
At the same time, the current energy-consuming workload proofing mechanism is also detrimental to the environment.
JPMorgan warned in a statement that Ether's dominance is at risk and market share is being lost to other blockchains due to high fees.
With wit.“What’s striking in this month’s correction is that Ether failed to regain market cap share compared to its main competitors as its price fell by a similar amount to smaller cottage coins.”
If networks aim to develop and grow efficiently, reducing transaction costs is inevitable.
Otherwise, it is no different from a standard centralized system. Unfortunately, transaction fees on the ethereum network have been high since July 2020.
Although the transaction fee is only applicable to small transactions, the vulnerability of Ether offers the potential for alternative blockchains such as Coin Smartchain, Terra, Avalanche or Solana. Some DeFi protocols have moved to these alternatives.
The famous CryptoKitties development team chose to leave after being greatly affected by Ether's poor scalability.
Never a perfect system
Unlike JPMorgan, many experts believe that alternative networks will not be able to challenge Ether's dominance.
Ether's average transaction fee has dropped to $11, a significant drop from the beginning of January.
While it is not the lowest available metric compared to Solana, it is still a positive metric, especially for those familiar with the ethereum blockchain.
Clearly, Ether 2.0 is the long-term approach that Ether is pursuing. It supports the scaling of the Ethernet network and reduces the current obstacles.
This also means that customers on the same network will have to spend a more optimal amount of gas.
Ether is struggling to meet the Ether completion deadline. Ether is moving to a more sustainable mining model: Proof of Stake (PoS).
The developers of Ether believe that after the transition is complete, the new mechanism will improve the project's standing in the cryptocurrency space.
Change is not possible because records are meant to be broken. While ethereum is still king, there is no denying that blockchain's dominance in the NFT industry has waned.
As more and more money pours into the NFT ecosystem, Ether will struggle to cope due to the lack of scalability and proper fee structure.
According to experts, the second largest cryptocurrency project is likely to update its network in 2023. For now, other blockchains still have a chance to catch up with this second largest player in terms of scalability.
The post Ether reaches major milestone: 1 million unique NFT buyers appeared first on Blockonomi.