Is the NFT fever still in vogue and can it drive the ETH price to new highs?

NFT (non-fungible token) took the entire industry by storm when Beeple sold an NFT for $ 69 million in March 2021. Since the bullish trend was mostly active at the time, Mike Winkelmann, aka Beeple, announced that he had identified the NFT as the next chapter in art history. However, the fever has cooled down a bit in the last few months.

With Bitcoin and ETH prices in free fall along with the rest of the market, the NFT is now out of the question and many are suggesting that we may be in a pre-NFT market. But that is only half the truth.

Is NFT Still Trending?

Search for NFT (green) and DeFi (pink) | Source: DappRadar

Like the DeFi craze, global NFT searches have declined significantly since the bear market took over in May, according to Google Trends. The volume of NFT’s last major product, NBA Top Shot, was down 66.87% in the second quarter of 2021. Additionally, the Ethereum collection, which had traded over $ 95 million late last quarter, crashed to just $ 16 million in June, but that doesn’t stop there.

According to statistics from DappRadar, based on recent NFT sales, the number of unique wallets increased sharply by 111.46% and sales also increased. Such positive moves happen thanks to the Axie Infinity money game. This game recorded over 62,000 unique wallets in 30 days.

Axie Infinity Statistics | Source: DappRadar

One of the main reasons for the success of Axis Infinity is Ethereum’s Ronin sidechain, which allows users to interact with the Axis universe without gas.

In addition, not only Axis rises in the rankings. NFT-based games are also on the rise, such as Alien World, which reached $ 356 million in trading last month.

Top Collection | Source: Twitter

Ethereum’s market volume fell 47% in the second quarter compared to the first quarter, but on a monthly basis it increased 46.24% in terms of traders and 5.32% in volume.

Fade but not fade?

If you look at the above graphic again, you can see that the majority of the NFT is paid out via ETH in addition to the NBA Top Shot. The space has come a long way since the days of CryptoKitties, but the current fascination with NFT is a different story, and it’s not too far-fetched to assume that its activity could also take the introduction of Ethereum to a new level.

DeFi in 2020 has brought the industry closer to the financial outlook, and the banking system, while still a volatile standard, operates from a decentralized perspective. Its influence eventually spilled over to Ethereum, and the same thing can happen with NFT.

NFT has the potential to add a new dimension to the industry, a new generation of participants who appreciate the essence of digital art. With Ethereum, it also makes sense to offer NFT work as all of the major digital art auctions are conducted on Ethereum, not Bitcoin or any other crypto asset. That means that Ethereum’s ERC20 token has suddenly become the gold standard for tracking ownership of digital works of art.

On the flip side, while the NBA’s Top Shot is paid in FLOW tokens, its blockchain ties all of the $ 350 million in NBA Top Shot NFT revenue on the Ethereum network.

With NFT taking a relative position in space like DeFi, there will likely be another boost to Ethereum’s value as ETH was ahead and faster in development. History shows that speed is often synonymous with profit.

ETH price chart | Source: Tradingview

Minh Anh

According to AMBCrypto

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