Non-fungal token transfers (NFTs) on Ethereum have outpaced transfers of stalcoins and altcoins while the supply of wrapped Bitcoin (WBTC) has remained relatively stagnant since late last year.
These are two of the key findings in the latest State of the Net update of Coin Metrics. It details how ERC-721 transfers have surpassed stable currencies and high coins on Ethereum since last July and have continued to increase the margin between them since then. ERC-721 is the standard token for NFTs on the Ethereum network.
NFT transfers have exceeded 50,000 a day on average since late July and have not dipped below that line since. Daily NFT transfers now average an all-time high of over 300,000, a 600% increase since July.
Conversely, ERC-20 tokens including altcoins and stablecoin transfers have steadily declined since late July. High wedge transfers fell 39% from 42,000 a day to about 30,000. Stablecoin transfers are declining from about 24,000 in July to 18,000 today, a decrease of 25%.
The numbers make the message pretty clear: NFTs are more popular than they once were. Demand on marketplaces for making NFTs has never been higher according to data from DappRadar.
OpenSea is currently the all-time leader in NFT trading volume with $ 21.85 billion in value traded, but the LooksRare market threatens OpenSea dominance. Over the past 30 days, LooksRare has seen $ 11.6 billion in volume compared to OpenSea’s $ 4.13 billion.
Such popularity is aided by the expansion of professional sports and the music industry into NFTs and the growth of virtual real estate. NFL superstar Tom Brady raised $ 170 million on January 19 to help climb his Autograph NFT marketplace. On February 3, recording artist John Legend launched an NFT platform for musicians to symbolize his work.
WBTC supply plateaus
WBTC is an ERC-20 token that has enjoyed an increase in total transactions since July. After hitting a low of 110,000 daily transfers on July 9, transfers peaked on November 3 with 557,700. There are currently about 232,000 daily transfers according to CoinMetrics.
WBTC acts as a stalcoin that is tied 1: 1 to the value of Bitcoin, and can be redeemed at any time for true BTC.
Related: NFTs and social capital: How projects work together for the benefit of the whole sector
Although WBTC’s total supply on Ethereum is close to its ATH of 271,000, equal to about 1.4% of the total BTC supply, CoinMetrics shows that the rate of coin tokens has flattened since the beginning of February.
However, the total number of Ethereum addresses holding WBTC is currently at ATH of 43,290 wallets according to CoinMetrics.