Cointime

Download App
iOS & Android

NFTs Accounted for 28% of the ETH Gas Usage in January

CryptoSlate analysts examined the gas usage shares of different transaction categories on the Ethereum (ETH) network and found that the NFTs category accounted for 28% in the first month of the year.

The analysis divides all transactions on the ETH network into eight categories as Vanilla, ERC20, Stablecoins, DeFi, Bridges, NFTs, MEV Bots, and others.

The second, third, and fourth categories that occupied the most significant gas usage by share appeared as Defi, ERC20, and stablecoins, with 8% for Defi and ERC20 and 6% for stablecoins.

The categories

The vanilla category includes pure ETH transfers between Externally Owned Accounts (EOAs) issued without calling any contracts. The ERC20 class counts all transactions that call ERC20 contracts, excluding stablecoin transactions.

The stablecoins category represents all fungible tokens that have their value pegged to an off-chain asset either by the issuer or by an algorithm. This category includes over 150 stablecoins, with Tether (USDT), USD Coin (USDC), Binance USD (BUSD), and DAI (DAI) being the most prominent ones.

The Defi category covers all on-chain financial instruments and protocols implemented as smart contracts. Decentralized exchanges (DEXs) also fall under this category. More than 90 Defi protocols are represented under this section, including Uniswap (UNI), Etherdelta, 1 inch (1INCH), Sushiswap (SUSHI), and Aave (AAVE).

Bridges represent all contracts that allow the transfer of tokens between different blockchains and includes over 50 bridges such as Ronin, Polygon (MATIC), Optimism (OP), and Arbitrum (ARBI).

All transactions interacting with non-fungible tokens fall under the NFTs category. This section includes both ERC721 and ERC1155 token contract standards and NFT marketplaces for trading them.

MEV bots, or Miner Extractable Value bots, represent bots that automatically execute transactions for profit by reordering, inserting, and censoring transactions within blocks.

All remaining ETH transactions are gathered under the Other category.

Gas usage by category

The chart below represents the relative amount of gas consumed by each category in the ETH network. The chat starts from January 2020 and represents the gas usage share of each category with a different color.

At first glance, the NFTs, Defi, ERC20, Stablecoins, and Vanilla categories stand out as they have the most visible shares in total gas fees.

According to the data, the NFTs category currently accounts for 28% of the total gas fees on the ETH network, which is represented with the orange zone. This category’s share was only around 4% in early May before the pandemic started.

The Defi takes up the second largest share with 8%, represented by the light green area. Both the NFTs and the Defi category recorded an increase in gas fee shares since the pandemic started. The ERC20 category accounts for 8% of the total gas share. Represented by the dark green area, the category’s share halved from 16% in October 2022.

In the meantime, stablecoins’ percentage remained flat, around 5-6%, as can be seen from the dark blue zone as well. Finally, the vanilla category continued to account for around 5% of total gas fees.

Gas usage by NFTs

Looking at the gas usage of the NFTs category in detail, OpenSea appears as dominant. The chart below represents the NFT marketplaces’ share in gas usage since the beginning of 2018.

OpenSea appeared in early 2020 and significantly increased its share in gas usage after mid-2021. It remains the dominant NFT marketplace that occupies enough gas usage to leave a mark on the overall chart, except for a short period in January 2022, where LooksRare accounted for enough gas usage to appear briefly next to OpenSea.

Gas usage by stablecoins

The breakdown of the gas usage share of stablecoins also emphasizes USDT’s dominance. The chart below represents major stablecoins’ gas usage shares from the beginning of 2018.

Even though USDT remains the dominant stablecoin, its share still recorded a significant decrease from 11% to 4%. On the other hand, USDC became visible on the chart in early 2020 and has been growing its share in gas usage slowly but steadily since then.

Comments

All Comments

Recommended for you

  • US Official: Ukraine Agrees to Avoid Strikes on Non-Russian Tankers and Black Sea Oil Facilities

    On August 8, according to a US official, Ukraine has agreed not to target certain non-Russian tankers and Black Sea infrastructure vital to Kazakhstan's crude oil exports. This follows ship attacks last month that caused loading disruptions. The US official said Ukraine has set up contact points so commercial shipping companies can communicate information and ensure safe passage. The commitment was reached after meetings between senior US government leaders and Ukrainian leadership, marking a potentially significant step toward increasing regional oil shipments. Previously, activity in the region had cooled significantly due to several recent attacks near the Caspian Pipeline Consortium terminal in Russia's Novorossiysk. (Jin Shi)

  • U.S. July Nonfarm Payrolls Fall by 23,000, Missing Market Expectations

    On August 7, U.S. nonfarm payrolls decreased by 23,000 in July, compared with market expectations of an increase of 80,000, and the previous value was an increase of 57,000.

  • US May and June Nonfarm Payroll Additions Revised Down by 103,000 Combined

    On August 7, the US Bureau of Labor Statistics: May nonfarm payroll additions were revised down from 129,000 to 63,000; June nonfarm payroll additions were revised down from 57,000 to 20,000. After the revisions, the combined additions for May and June were 103,000 lower than previously reported.

  • U.S. Rate Futures Market Sees Lower Odds of Fed September Hike

    On August 7, the probability of a Fed rate hike in September as priced by U.S. interest rate futures declined.

  • New York Gold Futures Top $4,400 per Ounce

    New York gold futures topped $4,400 per ounce, up 2.36% on the day.

  • Japan Finance Minister: FX Market Affected by Moves Not Driven by Actual Demand

    Japanese Finance Minister Satsuki Katayama said she and U.S. Treasury Secretary Bessent agreed that the foreign exchange market has been affected by moves not driven by actual demand.

  • BTC Breaks Through $65,000

    Market data shows BTC has broken through $65,000, currently reported at $65,007.44, with a 24-hour increase of 0.6%. The market is highly volatile, please exercise risk control.

  • Brent Crude Drops 2.00% Intraday to $81.07/Barrel

    Brent crude oil fell 2.00% during the day, now at $81.07 per barrel. (Jin Shi)

  • Trump: Data Centers May Be More Important Than Oil

    August 7 news, U.S. President Trump said in an interview with Punchbowl News, "I saw the other day that Texas seems to be opposed to building data centers. I think that's a mistake. I'm not taking a position—I just think it's a mistake, because there are other communities that want to build data centers. When a community is willing to accept data centers, it means a lot of money will flow into that community. I don't think they're ugly. Some of the data centers I've seen are the most incredible buildings I've ever seen. They are very important to the economy. If Texas says no to data centers, that's a mistake, because data centers may be more important than oil."

  • Trump to Meet with Mining Executives

    On August 7, according to CCTV International News, US President Trump will convene executives from some of the world's largest mining companies at the US State Department on August 7 local time, in an effort to take action to 'secure critical mineral supplies for the US and its allies.' Reuters reported that the US urgently needs critical minerals to replenish weapons inventories depleted during the war against Iran. During the more than five-month war with Iran, the US military expended large quantities of precision-guided missiles and air defense interceptors. US defense officials and lawmakers have warned that given existing production capacity constraints, replenishing some stockpiles could take years—although the Trump administration has denied reports of a so-called 'severe shortage of ammunition stockpiles.' According to Pentagon officials and defense companies, supplies of minerals such as rare earths, tungsten, germanium, and scandium are essential for manufacturing precision-guided missiles, fighter jets, armored vehicles, infrared sensors, and other advanced weapons systems. Expected attendees include industry giants such as global mining giant Rio Tinto Group, Australia's BHP, US Freeport-McMoRan, US Mountain Pass Materials, US Rare Earths, US Energy Fuels, and Canada's Metals Company. According to sources, the Trump administration plans to announce multiple deals and memorandums of understanding.