NFT Craze Remains a Nonfactor for Ether’s Price

Not everyone’s happy with the rapid growth of the non-fungible tokens (NFTs), especially some people who are already inside the volatile crypto market for a bit longer time, aka, the “crypto natives.” As NFTs gain popularity despite an overall bearish sentiment in the crypto market, some NFT critics inside the market took to Twitter blaming the non-crypto natives who cash out their ether immediately after NFT sales for the lackluster price movement of the second-largest cryptocurrency by market capitalization.

But according to multiple analysts and market participants, the impact of NFT sales, if any at all, remains a nonfactor on ether’s prices. Instead, the complaint showcases many traders and investors’ frustrations in a dull market. The speculation “is more like a reflection of the current market sentiment,” Daniel Lv, co-founder of China-based blockchain Nervos Network, told CoinDesk through a representative.

The blame, though, isn’t completely irrational since growth in the NFT market has not quite slowed down partly because of the large number of endorsements it has received from non-crypto celebrities. The sort of statement or action by non-crypto people like Mike Winkelmann, aka Beeple, only further legitimated the blame: Beeple, who received his record-breaking $53 million in ether (ETH) for selling his NFT through Christie’s, told The New Yorker that he converted ether into fiat, which was seen by the crypto industry as a “betrayal.”

NFT Craze Remains a Nonfactor for Ether’s Price, CoinDesk, Jul 23