Nfts

Ethereum NFT Market Faces Collapse: Impact on ETH?

Published

on

  • Interest in Ethereum NFTs has declined significantly as sales have fallen over the past month.
  • The price of ETH remained stable, but network growth continued to decline.

Even if the price evolution of Ethereum [ETH] was in a positive direction in recent days, the Ethereum ecosystem was facing major problems.

NFT volumes start to drop

Over the past month, total Ethereum NFT sales have fallen by 55%. Popular Ethereum NFT collections such as BAYC (Bored Ape Yacht Club), MAYC (Mutant Ape Yacht Club), and Crypto Punks saw a significant decline of over 40% in sales and floor prices.

NFTs on other networks such as Solana and Bitcoin were gaining ground compared to the Ethereum network.

Source: Crypto Slam

Additionally, daily active addresses on the Ethereum network have also decreased significantly over the past few days, as has gas consumption on the network, implying a decline in overall activity on the Ethereum ecosystem.

This may be a sign that Ethereum’s popularity as an ecosystem is significantly diminishing.

Even though interest in ETH due to the hype around its ETF has increased and driven the price higher, a decline in interest in Ethereum ETFs could pose a problem for ETH in the long term.

Source: Santiment

At press time, ETH was trading at $3,786.76 and its price was down 0.68%. The network growth around the ETH token has decreased significantly, implying that the number of new addresses of interest for ETH has significantly decreased.

The lack of interest from new addresses suggests that the market is not ready to purchase ETH at its current price.

Some bulls may wait for a correction before accumulating more ETH in the future.

Additionally, the speed at which ETH is trading has increased, indicating that the frequency at which ETH is trading has increased.

Only time will tell if ETH co’s price action is tied to the upward momentum, giving bulls some hope for the future.

Source: Santiment

Is your wallet green? Check the Ethereum Profit Calculator

How do addresses hold up?

Looking at the status of holders, most addresses were found to be profitable, as indicated by the high MVRV ratio for ETH.

Although a high MVRV ratio means more holders are incentivized to sell their holdings, the presence of long-term holders, illustrated by the strong Long/Short difference, implies that a sell-off may not occur anytime soon.

Source: Santiment

Fuente

Leave a Reply

Your email address will not be published. Required fields are marked *

Información básica sobre protección de datos Ver más

  • Responsable: Miguel Mamador.
  • Finalidad:  Moderar los comentarios.
  • Legitimación:  Por consentimiento del interesado.
  • Destinatarios y encargados de tratamiento:  No se ceden o comunican datos a terceros para prestar este servicio. El Titular ha contratado los servicios de alojamiento web a Banahosting que actúa como encargado de tratamiento.
  • Derechos: Acceder, rectificar y suprimir los datos.
  • Información Adicional: Puede consultar la información detallada en la Política de Privacidad.

Trending

Exit mobile version