The creation and trading of NFTs have now become the main on-chain activities in the current blockchain ecosystem. According to information shared by Etherscan, a leading EVM blockchain explorer, 95% of on-chain transaction activities in mainstream EVM blockchains in recent weeks have been related to NFTs.
Etherscan further explains that compared to the previous method of issuing meme coins through the ERC20 token standard, the cost of deploying/minting/transferring tokens is lower when utilizing NFTs on the EVM. This is because the text data is written in the Input Data when performing engraving operations.
However, Etherscan also points out that NFTs on Ethereum are quite counterintuitive as these NFTs rely on third parties to index the transactions and apply token rules. In other words, although NFTs provide a different way of handling token-related operations compared to smart contracts on Ethereum, this method is less intuitive and efficient in terms of automating and decentralized execution of token rules.
Despite the lack of intuitiveness in terms of technology and application, the issue of NFTs has not been a major concern for retail investors. Since mid-November, NFTs have been frequently created on the EVM chain, leading to a surge in on-chain activities and significant increases in gas fees. This has even affected the normal operation of some networks, such as Arbitrum.
Etherscan believes that in a way, NFTs, apart from bringing speculation, can also be seen as a pressure test for blockchain and infrastructure providers to evaluate their limitations.
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