Lido NFTs removed from Nansen service after Mint volume crash
- Blockchain analytics platform Nansen has pulled Lido NFTs from its NFT Haven service due to a misleading increase in NFT mint volume due to a technical issue.
- The event caused NFT mint volume of 430k ETH, which was initially misinterpreted as a spike in NFT market activity.
- Nansen has indicated that the NFT market is yet to return to its full strength, despite record growth in the first quarter of 2023.
Blockchain analytics platform Nansen has announced the removal of Lido NFTs from its NFT Paradise service. Nansen’s NFT Paradise is a platform offering detailed analysis on the NFT market, helping users understand transactions, trends and dynamics. Nansen’s decision was influenced by user votes following a recent incident involving the decentralized finance (DeFi) platform Lido. Lido staking withdrawal requests were mistakenly represented as NFTs, leading to an unexpected increase in NFT mint volume.
Lido said last month that users would receive NFTs as part of the deposit withdrawal process. Whenever a user withdraws Ether, the decentralized finance protocol issues NFT certificates, which are used to claim their ETH tokens.
The massive spike, which included 430k ETH (about $780 million), was initially interpreted as a boom in the NFT market. However, a deeper investigation revealed that this was due to a technical problem rather than genuine market activity. Nansen clarified that the NFT market is yet to gain a firm footing, reducing hopes of a rapid recovery in the near future.
Nansen previously stated that during the first quarter of 2023, NFT trading volumes in (ETH) and USD were on the rise. Specifically, a total of 2,839,354 ETH were transacted in Q1 compared to 1,525,471 ETH in Q4 last year. March 2023 marked an annual high in NFT sales. This surge was largely driven by Blur, an emerging NFT marketplace that quickly overtook established marketplaces to lead the industry in sales.
Despite the increase in sales and users during Q1, the NFT market witnessed a slowdown in April. Transaction volumes saw a decline in April as compared to March and this trend continued in May as well. The total number of NFT holders also increased marginally in the first quarter of 2023, reaching 13,999,528 compared to 11,233,872 NFT holders in the fourth quarter of 2022.
The Lido NFT was removed from Nansen’s service after the Mint volume crash that first appeared in the coin edition.
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