Fetch.ai introduces a proposal for its NFT marketplace- What could be the verdict?

•  Fetch.ai introduced a proposal that focuses on developing a new AI-focused NFT marketplace.
• Fetch.ai’s NFT ecosystem registered a decline, but FET’s on-chain performance looked satisfactory.

Fetch.ai [FET] shared a new proposal on 12 April which aims to improve the blockchain’s NFT ecosystem. The latest proposal talks about funding an AI-focused NFT marketplace on the Fetch.ai network. The team has also started a poll based on which the proposal would be approved.

Governance Proposal #18 is live! 📢

This proposal launched by the @AzoyaLabs team is a Community Pool Funding request to build an AI-focused NFT marketplace on the https://t.co/kJ9URVpOul network.

Be sure to vote & let your voice be heard ⚡️👇https://t.co/WLuh7CMbMw

— Fetch.ai (@Fetch_ai) April 12, 2023

Read Fetch.ai’s [FET] Price Prediction 2023-24

AI-enabled NFT marketplace

The AzoyaLabs team, which is a partner of the Fetch team and has been collaborating with them on the development of FetchStation, proposed allocating community funding for the development of a native NFT market for Fetch. 

The interesting part is that it would be geared toward both AI-generated content and AI models for access and distribution using NFTs as a medium.

Network activity to boost?

At press time, over 25% of the total votes were registered, with the majority of them agreeing to pass the proposal. 

Source: Fetchstation

The NFT marketplace will not only be beneficial for the blockchain’s NFT ecosystem but can also help increase network activity in general.

 The official proposal mentioned that the marketplace could increase gas usage on the network. 

In fact, this proposal also drew a comparison with Ethereum, where NFTs are responsible for around 20% of the total gas usage of the network.

 It was further mentioned that 25% of the fees generated will be sent back to community funds for future projects. 

Fetch.ai’s NFT metrics registers decline

Fetch.ai’s NFT space witnessed massive growth during mid-March. However, since then, it has lost momentum. This was evident from FET’s reduced number of NFT trade counts and trade volume in USD. 

Source: Santiment

It was interesting to see that while the number of unique addresses that bought more than $100,000 of NFTs declined, the number of unique addresses that bought more than $1,000 of NFTs went up over the last month. 

Source: Santiment

FET price still under bearish pressure

According to CoinMarketCap, FET’s price went down by more than 4% in the last seven days. At press time, it was trading at $0.341 with a market capitalization of over $279 million. 

However, the declining trend might end soon, as several of the on-chain metrics looked bullish. For instance, FET’s exchange outflow spiked, suggesting increased buying pressure.

Source: Santiment

How much are 1,10,100 FETs worth today?        

A few days ago, it was noted that investors’ interest in trading FET was dwindling. However, the situation has changed as evident from the supply held by top addresses, which increased last week. 

At press time, FET’s social volume was also on an upward trajectory, reflecting its popularity. Another positive metric was network growth, which remained relatively high throughout the last week.