- Ethereum NFT trading volume fell 28.5% week-on-week, with $22.34 million of digital assets traded on the ETH network.
- Analysts claim that the drop in NFT trading volume is an indicator of a drop in the price of Ethereum.
- Analysts predict a likely pull back to $1,500, but Ethereum’s bullish wave is far from over.
NFT trading volume plummets On the Ethereum network, the contribution of digital art to Ethereum activity is shrinking.analysts believe NFTs are major gas consumers Ethereum’s rise and decline in volume could fuel bearish sentiment among Ethereum holders.
Also read: 3 Reasons Proof of Work ETH1 Will Survive the Ethereum Merge
Why the Significant Decline in NFT Activity on Ethereum
The STACKS podcast recently Relationship between Ethereum and NFT floor prices. punk 9059, Key NFT Twitter influencers and authorities joined the podcast to share their thoughts on the relationship between the second largest cryptocurrency and NFT price floors.
when Ethereum Rise Has Historically Been Positive for NFT PricesHowever, most investors price digital art and collectibles in ETH. Punk9059 is Ethereum price and NFT floor price direct correlation.
Relationship between Ethereum and NFT floor prices
a Decline in Ethereum price leads to capital outflow from NFTs, Because investors withdrew cash from volatile assets, including jpegs. A rise in Ethereum price is therefore a dream scenario for NFT holders as it pushes the price floor higher.
As of July 30, $626.11 million in monthly NFT marketplace volume, down 41% from June 2022. An interesting insight is that July was the first month in which we had more unique sellers than buyers. Unique buyer and seller wallets held up more than volume.
July 30, 2022 marks the first year-over-year decline in NFT volume.
OpenSea USD Volume: 2021 vs 2022
NFT, the dominant gas consumer of Ethereum Suffering from declining trading volume. Checkmate, leading analysts see this as a sign of declining demand. therefore, Ethereum price may fallin line with decreasing demand.
NFTs are the dominant gas consumer of Ethereum and have been for some time.
This is in low demand.
We are cautious on price players as we have not seen demand growth to support it. https://t.co/6EXZpCuyQZ
— _Checkɱate ⚡ (@_Checkmatey_) July 31, 2022
Analysts Predict Ethereum Price to Pull Back to $1,500
Wolf, a pseudonymous cryptocurrency analyst, sees Ethereum’s recovery, which began on July 22, 2022, as a V-shaped one. The first target of $1,685 has been met, the analyst’s next two targets for ETH are $2,492, and the third target is his $3,373. Analysts argue that a pullback to $1,500 is justified given that Ethereum’s price has completed a V-shaped recovery, as predicted by the altcoin roadmap.
ETH-USD price chart
Meanwhile, FXStreet analysts have explored the possibility of Ethereum price dropping to $300 in a recent video. Check the video below for more information.