NFT-ETH Price Correlation Analysis

Written By Guest User
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Key Points:

  • During periods of ETH volatility to the downside, we see that the NFT price floor seems to perform better. This could be due to investors seeking more out of their ETH investment with NFT purchases/trading.

  • During periods of price stagnation/low volatility, NFTs continue to perform well. NFTs throughout the month of August saw a large amount of media coverage and adoption from celebrities/companies.

  • As ETH trends upwards, the floor price of NFTs dip. This makes sense, as it “costs more” to purchase the same NFT since ETH is more valuable. 1 ETH always equals 1 ETH, but 1 ETH is now worth $3800 as opposed to just $3000.

  • Below we also see that OpenSea trading volume (a major NFT market place) correlates with the overall trend of the NFT price floor. As more people buy (higher buying volume), price increases. If volume falls and selling volume overtakes buying volume, the price floor falls.

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  • We also see the amount of unique buyers and sellers increasing throughout the month of August, showing that more and more individuals are entering the space.

Guest User
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