As Ethereum’s gas prices spike, NFT trading activity surges to nearly annual highs, with Pudgy Penguins giving Bored Ape Yacht Club a run for their money.

Unprecedented NFT Trading Volumes

In a remarkable uptick, Ethereum-based Non-fungible token (NFT) trading volumes have soared, reaching a peak not seen since the early months of the previous year. Data from CryptoSlam reveals this surge, with weekly trading volumes hitting the highest since February 26, 2023.

Pudgy Penguins’ Rising Popularity

The Ethereum network’s NFT craze is currently being led by the adorable Pudgy Penguins collection, which is now challenging the market cap of Yuga Labs’ famed Bored Ape Yacht Club. Pudgy Penguins, a collection of 888 unique penguin avatars minted in 2021, has captured the hearts of collectors and investors alike.

With plans to launch Pudgy World, an interactive gaming experience, on the Apple Vision Pro, the Penguins are not just about looks; they’re expanding their ecosystem. Meanwhile, Yuga Labs is not far behind with developments in their Otherside metaverse, hinting at an upcoming third “traveling” test.

Ethereum’s Gas Spike

The surge in NFT transactions has had a noticeable impact on Ethereum’s network fees. On February 9, the average gas fee shot up to 70 Gwei, with spikes going as high as 377 Gwei, reminiscent of the network congestion experienced back in May 2023. This fee escalation is attributed to the excitement surrounding ERC-404 tokens.

A Divergence in Trends

Despite the bustling trade of NFTs, the trend for on-chain minted NFTs tells a different story. Over the past year, the minting activity has remained relatively unchanged, indicating that the secondary sales market is the primary driver of the recent volume increase.

Looking Ahead

As the NFT marketplace continues to evolve, all eyes are on the Ethereum network to see how it will manage the growing demand and whether the Pudgy Penguins can ultimately dethrone the Bored Ape Yacht Club from its esteemed position.