Non-fungible token (NFT) production on Ethereum, or the value of the primary sales generated from NFT minting, fell to an all-time low of US$17.55 million in September, down 12.4% from US$20.05 million in August, according to Forkast Labs data.
NFTs are blockchain-based digital assets that can provide information on digital ownership. Notable collections like the Bored Ape Yacht Club (BAYC) were trading at a floor price of 128 ETH (US$211,000) in May 2022, before dropping more than 60% along with other notable NFT collections like CryptoPunks, which fell 60.4% to 45 Eth (US$72,727), from an all-time high of 113.9 Eth (US$184,080) recorded on Oct. 9, 2021.
“Blue-chip NFT collections such as Bored Ape Yacht Club and CryptoPunks serve as indicators of broader NFT market sentiment. Their decline might signify a shift in investor sentiment, perhaps questioning the intrinsic value of such assets,” Matan Doyich, the chief executive officer of Crypto Index, a firm building centralized infrastructure for tokenized crypto exchange-traded funds, told Forkast.
Reflecting the overall NFT bear market, the Forkast ETH NFT Composite, an index that measures the performance of the top 250 NFTs in the Ethereum blockchain, fell 48% year-to-date to an all-time low of 715.22 points recorded on Sept. 28.
NFT production on the Polygon blockchain fell to a seven-month low of US$4.7 million in September, down from a yearly high of US$14.44 million in August. Polygon NFT production is up 219% year-to-date, from US$1.47 million in January. Despite the rising numbers, the Forkast POL NFT Composite fell over 46% year-to-date.
The overall NFT market slump, along with the decrease in NFT production, can be attributed to a loss of interest by NFT investors, according to Anndy Lian, author of NFT: From Zero to Hero.
“The NFT market was driven by a lot of hype in 2021. However, this has died down in recent months, as people have become more realistic and choosy about the kind of NFTs they want,“ said Lian.
NFT services revenue on Ethereum, or total marketplace fees and creator royalties from secondary sales, fell 84.4% year-to-date to US$6.01 million in September from US$38.74 million in January according to Forkast Labs data.
At OpenSea, one of the world’s largest NFT marketplaces, the protocol’s monthly NFT trading volume fell 31.8% to US$76.79 million in September from US$112.74 million in August, according to data from The Block.
Blur, OpenSea’s rival marketplace, had its trading volume fall 38.3% to US$150.42 million in September, down from US$243.92 million in August.
“To reignite interest in NFTs, the industry needs to see and demand innovations that go beyond digital art and collectibles, such as incorporating NFTs into more substantial real-world applications,” Doyich told Forkast.
This year brought new use cases for NFTs, which will be needed to drive institutional investors, according to David Tng, managing director at TZ APAC, the Asian entity of the Tezos blockchain.
“NFTs will rely on the same pain point of needing to prove their utility, especially against the backdrop of a very volatile market. However, we are still seeing rapid growth and innovation. Enterprises and artists continue to use NFTs as a platform to explore, create and engage with their audiences,” wrote Tng, in a statement shared with Forkast.
Despite the market slump, globally recognized brands continue adopting NFTs. Starbucks launched an NFT version of its iconic pumpkin spice latte last Thursday, to commemorate the 20-year anniversary of the iconic drink. The NFTs worth US$20 have no minting limit and users will receive 250 bonus points that can be spent to improve their Starbucks Odyssey experience, which is the company’s Web3 rewards and loyalty platform.
Source: https://finance.yahoo.com/news/ethereum-nft-production-falls-time-123000793.html
On September 28, 2023, a panel discussion on on-chain data and Web3 security was held at the Singapore Management University (SMU).
The panel was moderated by Prof. Feida Zhu, a professor of information systems and co-director of the SMU Blockchain Lab.
The panellists were Aby Huang, CEO of SlowMist, a leading blockchain security company; Neal, CEO of BugRap, a decentralised bug bounty platform; Anndy Lian, advisor of Bybit, a global cryptocurrency exchange; and Xiaolin Wen, a research scientist at SMU.
The panellists shared their views and experiences on how on-chain data analytics can help improve the security measures of blockchain networks, detect and prevent fraud and security breaches, identify and mitigate vulnerabilities in Web3 applications, and communicate the results of data analysis to users and decision-makers.
On-chain data analytics refers to the process of collecting, processing and analysing data that is stored on the blockchain. On-chain data can provide valuable insights into the behaviour, performance, and security of blockchain networks.
Huang explained that on-chain data analytics can help improve the security measures of blockchain networks by providing real-time monitoring, risk assessment, and alerting. He said that on-chain data analytics can help detect anomalies, such as abnormal transactions, contract calls, or gas usage, that may indicate potential attacks or vulnerabilities.
He also said that on-chain data analytics can help assess the security level of smart contracts, tokens, dApps, and protocols using various indicators, such as code quality, audit results, governance mechanisms, and community trust.
Neal agreed that on-chain data analytics can help improve the security measures of blockchain networks by providing transparency and accountability. He said that on-chain data analytics can help verify the correctness and integrity of smart contracts and transactions using cryptographic proofs and consensus mechanisms. He also said that on-chain data analytics could help incentivise good behaviour and deter bad behaviour using economic models and game theory.
Lian added that on-chain data analytics can help improve the security measures of blockchain networks by providing feedback and improvement. He said that on-chain data analytics can help measure the performance and efficiency of blockchain networks by using metrics such as throughput, latency, scalability, and cost. He also said that on-chain data analytics can help identify the pain points and bottlenecks of blockchain networks by using benchmarks and comparisons.
Wen concluded that on-chain data analytics can help improve the security measures of blockchain networks by providing intelligence and innovation. He said that on-chain data analytics can help discover new patterns and insights from blockchain data using advanced machine learning, natural language processing, and graph analysis.
He also said that on-chain data analytics can help create new solutions and applications for blockchain security by using interdisciplinary approaches such as cryptography, software engineering, and human-computer interaction.
The panellists shared some examples of how on-chain data analytics can help with the early detection of fraud or prevent security breaches in the blockchain space.
Huang said they actively monitor and investigate hacking incidents in the blockchain ecosystem. They have a comprehensive security monitoring system that protects their clients from past and future incidents. SlowMist assisted in many security breaches, including the recent incident with Mixin involving US$200 million of crypto assets.
Anndy Lian added that education is the key. Not many people know about crypto. They certainly do not understand how to secure their platforms and assets better. He also mentioned that platforms like SlowMist should reach out to more users to let them know they have a free live monitoring system that could save them from losing millions.
Zhu predicted that with advances in on-chain analytics, Web3 security measures will evolve in several aspects. He said that Web3 security measures will become more proactive than reactive, meaning that they will focus more on preventing attacks than responding to attacks after they happen.
He said that Web3 security measures will also become more adaptive than static, meaning that they will adjust to changing conditions and threats rather than relying on fixed rules and parameters. He said that Web3 security measures will also become more collaborative than isolated, meaning they will involve more coordination and cooperation among different stakeholders rather than relying on individual efforts.
The panellists agreed that on-chain data analytics has unique advantages in transaction intent discovery because it can leverage the rich and diverse data available on the blockchain. They said that on-chain data analytics can use various techniques such as graph analysis, network analysis, community detection, and link prediction to analyse information from the transaction data, such as the relationship, structure, or dynamics of the transaction network.
They said that on-chain data analytics can also use various techniques such as game theory, behavioural economics, social psychology, and decision theory to understand information from the transaction data, such as the strategy, preference, or emotion of the transaction participants.
This event was organised by Moledao and was held in conjunction with an MOU signing with SMU and SlowMist.
Source: https://e27.co/on-chain-data-and-web3-security-insights-from-industry-experts-20231006/
