- The number of ERC-721 smart contracts focused on NFT reached a new all-time high on Ethereum.
- At the same time, the NFT market still has plenty of room to grow, experts noted.
The total number of ERC-721 smart contracts, which form the backbone of most non-fungible tokens () on the blockchain, has reached a new all-time high following the current NFT boom, according to CoinMetrics’ report posted on Tuesday.
According to the report, the number of ERC-721 It has recently reached a new all-time high of around 19,000 as a result of the latest “NFT mania.”
ERC-721 is the Ethereum standard for creating NFTs, non-exchangeable tokens that are cryptographically unique. They have been used to create digital items in short supply, including artwork, video game assets, and music. In recent months, the NFT space has expanded considerably, with trading volume in the top three NFT markets reaching $ 342 million in February alone, up from $ 12 million in December 2020, according to DappRadar.
“The NFT market has gone from virtually nonexistent to a flourishing multi-billion dollar decentralized market in recent months,” said analyst Mati Greenspan, founder of the crypto analytics team Quantum Economics. Decipher.
However, despite the increase in sales volume, NFTs are still a relatively small slice of the Ethereum pie. TOAlthough the number of ERC-721 contracts has risen to around 19,000, they are a “small fraction” of the 17.84 million Smart contracts currently implemented on Ethereum, the researchers noted.
The first few days or a bubble about to burst?
Despite the fact that NFTs are much more expensive than other tokens on average, the relatively small number of ERC-721 contracts implemented, compared to the Ethereum ecosystem as a whole, suggests that the sector is still in its infancy in terms. mass adoption.
“Given the growing public interest in NFTs and the growth of the metaverse market, NFT technology has great prospects to scale and evolve,” said Petr Kozyakov, co-founder and CBDO of the Mercuryo payments network. Decipher.
He suggested that the NFT market could peak at $ 40 billion by the end of 2021. However, other experts argued that the unprecedented prices some collectors pay for NFTs have over-inflated the market.
Konstantin Anissimov, CEO of crypto exchange CEX.IO, said Decipher that the core implementation and use cases for all NFT technology have yet to be fully discovered, leveraged, and integrated.
Meanwhile, he argued, “There are clear indications that the NFT market is hyper-inflated in terms of unprecedented valuations of some of the items sold so far, including Beeple’s EVERYDAYS: THE FIRST 5000 DAYS, which sold for $ 69.3 million. “Beeple himself is inclined to agree, having described the NFT space as “a bubble” in a recent interview.
“We are likely to see many peaks and valleys, but there is no question that this technology is here to stay,” concluded Greenspan.