The Ethereum Merge is set for release in mid-September. Holders of Ethereum focused on the Ethereum Merge price, but also the Ethereum Merge NFT impact.
Ethereum supports both coins and NFTs. Most of the attention has been drawn to the Ethereum coin upon the release of Ethereum 2.0. However, it leaves in question Ethereum NFTs and other related projects.
Here’s how the merge will likely affect NFTS starting in September.
How will the Ethereum Merge Affect NFTs?
Ethereum’s upcoming Merge will see the blockchain shift from PoW to PoS. Two significant effects will take place for both miners and NFT holders.
First, users will notice that Ethereum’s energy consumption will dramatically decrease. According to NFT club, adding any NFT to a blockchain utilizes around 83kg worth of CO2. With the shift to PoS from the PoW system, Ethereum looks to cut energy consumption in half.
The PoS mechanism will notably help the blockchain reduce its energy consumption by almost 90%. This would make Ethereum’s blockchain much more sustainable to mint and develop projects, including NFTs.
Companies in the NFT community are continuously searching for ways to offset NFT energy consumption and limit CO2. More trees need to be planted in the real world to balance the CO2 exertion as NFTs are sold. SoRare, Axie Infinity, and Art Blocks are companies that associate with the most harmful NFT collections to the environment.
The merge is also affecting prices, causing a major price increase in Ethereum. Correspondingly, interest levels are spiking as well. This can see another positive Ethereum Merge NFT impact; as more interest comes to Ethereum, more will also come to Ethereum-based NFT projects.
Again, this is just a prediction. We will have to wait to see numbers post-Ethereum Merge to see the true impact PoS has on NFTs. The most expected positive will be less energy consumption, which helps with NFTs’ ongoing environmental concerns.