BSC News Weekly NFT Round Up: How Could the Ethereum Merge Affect NFTs?
The Merge won't reduce gas fees or improve transaction speeds on Ethereum, but NFT projects may benefit from energy conservation and deflationary pressures.
The Merge Will Impact All Ethereum Projects
Just over seven years after it launched in 2015 as a Proof of Work (PoW) network, Ethereum made the switch to Proof of Stake(PoS) on Sept. 15. The Merge will affect all Ethereum projects, including Non-Fungible Tokens (NFTs).
After the Merge, Ethereum NFTs will undergo two noticeable changes. First, users will see a dramatic reduction in energy consumption. Second, the value of Ethereum may increase as the token becomes deflationary.
NFT Club has estimated that the energy required to add an NFT to a blockchain equates to the addition of about 83 kg of CO2 to the atmosphere.
Whether or not that calculation is accurate, Ethereum’s PoS mechanism will cut the chain’s energy consumption and carbon dioxide emissions by more than 99.9%. The Merge upgrade will also simplify the process of minting and developing Ethereum NFTs and projects.
Future upgrades to Ethereum will also lower the maintenance costs for NFT projects, lowering gas fees and stimulating the broader adoption of NFTs. The ease of minting and maintaining NFTs could predicate a rapid rise for Ethereum.
The world’s largest NFT marketplace OpenSea has confirmed that it will only support PoS NFTs following the Ethereum merger, according to an announcement.
The Merge’s Impact on NFT Supply
One intent of The Merge is to transform Ethereum from an inflationary token into a deflationary token, meaning its overall supply will decrease over time. Before The Merge, Ethereum was more susceptible to inflation than Bitcoin, because unlike Bitcoin, Ethereum has no theoretical cap on total supply.
A deflationary Ethereum could by extension affect the NFT market: An increase in the value of Ethereum could serve to raise the price of NFTs built on Ethereum.
Christine Kim, a lead researcher in Galaxy Digital, said in an interview with Bloomberg that reducing the Ethereum token supply would boost Ethereum's investment as it could hold its value against inflation. In the long run, these changes will likely positively impact NFT's price and sustainability.
Potential NFT Security Concerns?
Adam McBride, the NFTnow and rugradio host, warned that the Ethereum Merge might pose a security issue for NFT holders -- assuming that at least one Ethereum PoW fork remains.
With two forks of Ethereum existing, users' NFTs will have two versions, one on the legacy PoW form and one on the new PoS fork.
A user who tries to cash in on the fork by selling their PoW NFT could expose themselves to a “replay attack,” where a transaction on one fork could be replayed on another.
McBride gives the hypothetical example of a CryptoPunk holder selling their PoW NFT for 5 ETHW, and then (with a “replay attack”) someone selling their PoS NFT for 5 ETH.
McBride said, “Ouch.”
Following The Merge, BlockSec was the first analytics service to flag a suspected replay attack that resulted in an exploit of 200 ETHW tokens on Omni Bridge. However, the EthereumPoW team denied this was an exploit of the PoW chain, but rather the result of an error in the contract of the bridge itself.
Impact on ‘Ethereum Killers’
As a result of the new shift, it will be interesting to see what happens in the future in the battle among Solana, Polygon, and Ethereum for NFT dominance.
However, since Ethereum gas fees will not be immediately reduced by The Merge, those other chains will retain that advantage. As it stands now, Solana might have more potential for NFTs than Ethereum, thanks to the high speed and low cost of Solana transactions.
Additionally, BNB Chain continues to exhibit high performance and low fees, while developing its still-nascent NFT ecosystem.
“The sentiment toward PoS chains like BNB Chain and Solana already indicates that some users would prefer to collect NFTs on a greener chain. Whether this will really have a material impact is doubtful,” Luke Rare, Growth Lead at Rareboard, told BSC News. “Growth for NFTs will come from new use cases, better tooling, and platforms with improved user experience and onboarding processes.”
Ethereum's Merge is likely to go down in history as one of the most significant crypto upgrades ever (or at least, so far). Some initial security threats, such as a replay attack, may manifest themselves, but those are expected to be resolved soon. Most market experts expect The Merge to impact the NFT market positively.
We'll be back next week with more interesting discussion about NFTs. Until then, stay tuned: Buh-bye!
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Author
Related News
Delve into the highs and lows of the crypto market's rising stars, including exclusive insights on BlastUP's game-changing trajectory.
Bitcoin's halving has sparked excitement across the crypto world, with some experts hinting at a major bull run that could see values soar to staggering heights. This potential surge highlights the broader market optimism, turning the spotlight on low-key altcoins. These under-the-radar digital currencies offer a tantalizing promise for high potential gains, drawing attention from investors looking for the next big breakout in the crypto landscape.
BlastUP Goes Viral, Raising $3 Million in Just One Month
BlastUP, the premier launchpad on Blast, has recently made waves in the crypto world with its stunning debut, raising $3 million in just one month. Many smart investors are rushing to buy BlastUP tokens before their value skyrockets.
Holders of BlastUP tokens may benefit from a number of privileges including participation in an Airdrop, exclusive loyalty rewards for participating in IDOs, and the ability to earn interest through staking.
BlastUP stands out from the crowd in the crypto world. Backed by Blast, the sixth largest blockchain by TVL, it offers genuine utility as a launchpad for DApp ventures. With its motto Grow faster, earn more, BlastUP is dedicated to propelling the success of blockchain startups. Those who join BlastUP now become part of a project poised to become the next big thing in this bull run.
>> Buy BlastUP tokens before they skyrocket <<
Jupiter's Impressive Growth: Risks and Potential
The recent performance of Jupiter has been impressive, with a monthly increase of over 150% and an even more substantial six-month rise. This trajectory suggests a robust positive trend, which could continue to push the price up, targeting the next resistance at $0.81. The current price of $1.25, slightly below the 10-day SMA of $1.27, implies a healthy momentum, possibly igniting investor interest for further gains. Despite this, any unexpected shifts in market dynamics could see the price test nearer support levels at $0.68 or even $0.42, underlining the importance of vigilance among investors.
In looking at long-term prospects, this meteoric rise of over 4000% in the past half-year positions Jupiter as a noteworthy contender in the market. This kind of movement garners attention, potentially attracting new investors and increasing buy pressure. Nevertheless, market history tells us that assets with such rapid ascents can be susceptible to corrections. Jupiter's support levels at $0.42 and $0.30 could come into play if the tide turns.
Mantle's Price Doubles, Eyes on Upward Trend
Mantle's recent surge to $1.28 from $0.63 in just one month shows a strong upward trend, with the price more than doubling. If Mantle maintains this growth, it could soon break past the second resistance level of $1.27. Long-term, the six-month increase of 223.57% suggests solid momentum. Holding above the simple moving averages of $0.88 and $0.75, respectively, supports a continued rise. However, such rapid increases can invite corrections, potentially testing support levels if traders decide to lock in gains.
On the flip side, if we consider the significant short-term climb, there's a risk of pullback towards the nearest support at $0.63 or even the second support at $0.37. These levels might act as safety nets for the price. In the long run, if the upward trajectory stalls, the price might oscillate around the current simple moving averages. Mantle's ability to sustain above these averages in the face of potential market headwinds will be critical for ongoing growth.
Ondo's Market Surge: Growth & Volatility Risks
Ondo's seen impressive growth, with a one-month jump of over 105% and six-month rocketing close to 2780%. If it keeps catching eyes, the current $0.87 might push past the near resistance at $0.55 and challenge the second at $0.66. This hype could spill over, making short-term gains likely, with the 10-day average at $0.73 hinting at solid interest.
Looking long term, if Ondo holds strong above its support levels at $0.26 and $0.08, we could see steady growth. Such support suggests a faithful base, which helps during downturns. Still, with any asset that's seen a 2779.90% half-year surge, there's a risk of a pullback as early investors take profits.
FLOKI's 1304% Surge: Can It Reach New Highs?
Looking at the impressive growth over the past month of 512.87%, FLOKI's positive momentum could continue. Investors have seen a staggering six-month surge of 1304.41%, pushing past previous expectations. Based on these trends, there's potential for FLOKI to climb towards its all-time high of $0.000313. If buyer enthusiasm persists, the current price could be seen as a stepping stone for further gains.
However, it's crucial to remember that past performance isn't always indicative of future results. The asset has yet to return to its peak, and digital currencies are highly volatile. While historical data provides optimism, it's essential to prepare for fluctuations.
Conclusion
It becomes evident that while the likes of Jupiter, Mantle, Ondo, and FLOKI have piqued investor interest, BlastUP emerges as the most tantalizing of them all. Thriving within the robust Blast ecosystem, BlastUP's concept appears to be a compelling beacon for those seeking substantial returns, potentially outshining its contemporaries. As the crypto community anticipates where the next big rush will materialize, BlastUP's profound potential remains a standout in the current tide of market exploration.
Website | Twitter | Discord | Telegram
Disclaimer: This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $400. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
Follow us on Twitter and Instagram!
If you need tools and strategies regarding safety and crypto education, be sure to check out the Tutorials, cryptonomics explainers, and Trading Tool Kits from BSC News.
Looking for a job in crypto? Check out the CryptoJobsNow listings!
Try Now!
Sign up Now
Coming Soon
WIN BIG
Coming Soon
Start Earning Today!
Earn Now
Coming Soon
Sign Up Now
Play & Mine!
Coming Soon
Editors Choice
Other Currencies
- nameLTBuyLitecoin
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyEOS
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyMonero
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0% - nameLTBuyBitcoin Cash
Sponsored
Buy Crypto with Fees as low as 0%
Buy Crypto with a bank transfer, credit or debit card, P2P exchange, and more. Not investment advice. All trading risk. Terms apply.
£0£0+0%