NFTs, Cryptocurrency
But Why *Ethereum* for Generative NFTs? What About All of the Other Chains?
TLDR: It’s because ETH is where it’s all at. ETH is the center.
I like to think of the overall NFT space as a major city, with lots of super-cool areas and neighborhoods spun off in all directions. Just like New York City. But, within any city, there is usually ONE place that’s the dominant visitor hotspot — the #1 destination above all others, the most-hyped, must-see place. (Hint: That’s ETH in this scenario.)
The metaphor is simple for NFTs. The Ethereum (ETH) ecosystem, the #2 cryptocurrency with its $163 billion market cap (current value as of today), is the “Main Street” for NFTs. It’s the Times Square. It’s where everything huge is happening. It’s where all of the people are.
- It’s where the CryptoPunks live, which have (alone) accounted for $1.3 billion in trading volume.
- It’s where the Bored Apes live, which have (alone) accounted for nearly $1 billion in volume.
- It’s where the Mutant Apes, Otherdeed, and the Bored Ape Kennel Club live, which have in total accounted for $1.2 billion in trading volume.
- It’s got 199 projects that have moved 10,000 ETH ($13+ million each) in volume.
- It’s where *many thousands* of other generative NFT drops live.
Yes, there are other cool neighborhoods and districts (alt blockchains) with their interesting features and value-added differentiators from ETH.
Yes, ETH NFTs are working through various issues (esp. royalties and so forth).
And yes many other chains seem well positioned for major action and growth (e.g., Polygon for high-bulk / lower-value NFTs).
But ETH is, quite simply, where it’s at, at least for collectible generative NFT collections. So, for the best chance of success for most generative NFT drops, this is where you’ll want to be.
Okay, end of soapbox. Shilling for your fave alt chain in the comments is totally acceptable. But, I’m personally staying on ETH for NFTs and put all of my clients there, as I honestly feel it’s their best shot at success.
(ps This article is at least a whole year past-due. But I get the question a lot, so wanted to have a handy place to point people to.)
