How Ethereum (ETH) London Hardfork Can Help NFT Market Cap Grow 10X?

The Non-Fungible Token (NFT) market is one of the fastest-growing ones as the total NFT sale in the first half of 2021 reached $2.5 billion. While NFTs are nothing new as a concept, the 2021 bull run has surely put it in the limelight. It all started with digital artist Beeple whose NFT artwork fetched $69 million and following that many mainstream celebrities like Eminem, Floyd Mayweather, Beyonce, etc joined the NFT mania.

The most popular blockchain to mint NFTs is Ethereum (ETH) because of its smart contract capabilities that are used to digitally verify real-world memorabilia. However, the gas fee problem on Ethereum has not just affected Defi users and spot traders, even small NFT artists and traders have faced a similar issue. Right from minting an NFT to selling it can incur significantly high transaction costs at the current gas fee. All eyes are now set on London Hardfork to get rid of the mounting gas fee problem with EIP 1559 implementation.

can you believe it?😂
I could never have imagined this cost of gas fee!#NFT #nftart #NFTCommunity pic.twitter.com/fhbDaF3fL1

— Ned(a)👻 (@nednedii) May 30, 2021

The upcoming London Hardfork scheduled for August could be a lifesaver for the NFT ecosystem and help it grow 10X quite similar to the Defi ecosystem.

London Hardfork Could Potentially Help NFT Artists Become More Prominent

The gas fee is not an issue for artists who are selling their artwork for hundreds of thousands of dollars, but the number of such artists is very fractional when compared to the whole NFT market. A majority of it comprises small artists with limited resources and revenue and the same is true for small NFT collectors. A high gas fee can eat up all possible chances of profits.

Tried to buy more art today but the gas fee was too high.
What a drag! #NFTCommunity #nftcollector #NFT

— ꧁༒🌹❤️𝐿𝒶𝒹𝓎 𝑪𝒂𝒓𝒐𝒍𝒊𝒏𝒆 𝑹𝒂𝒅𝒊𝒔𝒉 ༒꧂ (@carolineradish) June 28, 2021

The EIP-1559 implementation during the upcoming London Hardfork promises to create a base price model for gas fees paid to miners instead of miners having the power to decide which transaction to process first. The proposal would also make ETH a deflationary asset as additional ETH in gas fee would be burnt. Once the gas fee problem is resolved, both Defi and NFT market could see an uptrend and explosive rise.

About Author

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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