Trading volumes of non-fungible tokens (NFTs) on the Ethereum network have soared to their highest levels in nearly a year, as per the latest data from CryptoSlam.
This surge in Ethereum NFT trading volume coincides with the rapid rise of the Pudgy Penguins collection, currently the third-largest NFT collection by market capitalization. The collection’s popularity is closing in on its competitor, Yuga Labs’ Bored Ape Yacht Club (BAYC) collection, known for its unique designs and exclusivity.
Pudgy Penguins, consisting of 888 virtual avatars, has garnered widespread attention since its release on the Ethereum blockchain in 2021. The collection is set to expand with the introduction of Pudgy World, an interactive gameplay experience slated for the Apple Vision Pro platform.
Meanwhile, Yuga Labs is developing the Otherside metaverse, with plans for a third “traveling” test in the pipeline. Despite the remarkable growth in Ethereum NFT trading volume, on-chain minted NFTs have witnessed a stagnant trend over the past year, suggesting that sales have been the primary driver of the recent surge in volume.
The spike in NFT trading activity correlates with the hype surrounding ERC-404 tokens, contributing to a significant increase in gas prices on the Ethereum network. On February 9, the average transaction fee surged to 70 Gwei, with peak gas costs reaching 377 Gwei, marking a level not seen since May 12, 2023.
