Ethereum’s gaming sector could fuel its resurgence, with notable growth in gaming protocols. The increased use of gas and interest in NFTs could contribute to the possible return of Ethereum.
Despite recent setbacks, Ethereum [ETH] has the potential to make a comeback, buoyed by its booming gaming sector. The Federal Open Markets Committee (FOMC) announcement negatively affected the price of Ethereum in recent days, but a resurgence of interest within its network, particularly in gaming, could help ETH regain its previous price levels.
Not Just a Game for Ethereum
Gaming protocols such as The Sandbox [SAND] Infinite Axie [AXS] and its project tokens ($SAND, $ENJ, $CHZ, and $AXIE) have seen substantial growth on the Ethereum network, as reported by Artemis via Twitter on June 15:
“Despite the market volatility, gaming tokens have seen a significant increase in the number of active addresses over the last 7 days. Gaming on $ETH saw the largest week-over-week increase, with social project tokens such as $SAND, $ENJ, $CHZ, and $AXIE leading.”
This increase in gaming activity has led to an increase in unique active wallets for these dApps, positively impacting overall network volume and transactions, which bodes well for Ethereum.
The increase in gaming activity has resulted in increased gas usage on the Ethereum network, which is beneficial for Ethereum as it demonstrates increased network activity and increased demand for decentralized applications. This strengthens the utility and value proposition of the network.
What is the NFT Sector Like?
The Ethereum NFT sector has also been witnessing increased interest, with significant growth in the number of NFT trades on the Ethereum network in recent days, as indicated by data from Santiment.
However, the surge in NFT interest has been driven primarily by newly minted sets, while established top-tier NFT sets such as BAYC, MAYC, and Azuki have all seen a significant decline in volume and sales over the past year. month.
In addition to NFT enthusiasts, Ethereum network validators have also shown increasing numbers. According to data from Staking Rewards, the number of validators has increased by 7.09% in the last 30 days.
However, the revenue generated by these validators has experienced a substantial decline of 46.35% during the same period. Future stakeholder optimism regarding ETH remains uncertain.
“ETH generated the highest revenue in the first quarter, driven by its high usage and gas fees,” according to Messari’s recent tweet. Ethereum’s revenue was $457 million, nearly 2.8 times the combined revenue of all other prominent L1s.
However, things changed in the second quarter of this year. Data from Token Terminal revealed that ETH revenue had declined. After skyrocketing on May 5, 2023, Ethereum’s revenue plummeted sharply, which was not good for the Blockchain.
ETH was recently trading at $1,669.23. The speed of ETH transactions has also seen a decline, indicating a relative lack of ongoing ETH trades.
Trader sentiment towards ETH remained largely bearish, with 52.02% of all positions short. This reflected a prevailing bearish sentiment among traders.
According to CryptoPredictions, the ETH Price is forecasted for today (06.17.2023) to be in the $1,417.406 – $2,084.421 price range. Ethereum is predicted to end today at $1,667.537.
By Audy Castaneda
