When the Ethereum price goes up, nonfungible token price floors will often plummet. The past week illustrated that point once again, with over half a dozen collections’ floors dropping by over 50%. Of course, such a drop isn’t necessarily indicative of the future price momentum, but it is problematic.
Ethereum NFT Price Floors Take A Beating
It was a matter of time until most NFT collections saw their price floors return to more normal levels. These projects have relatively common short-term pump-and-dump momentum, but sustaining long-term growth is tricky. Moreover, price floors will decrease significantly when the ETH price goes into a bullish mode. More specifically, that applies to floors priced in ETH and not necessarily USD.
This week has proven to be a rough week for dozens of Ethereum-based collections. Project 0x038 is the biggest “loser” following its price floor dropping by 80%. However, things don’t look much better for Got Hates NFTees, Mirakai Scrolls, NFT Worlds, Moonbirds Oddities, Tableland Rigs, and Critterz. All of their price floors dropped by over 50% this week, regardless of any meaningful changes in the number of collection owners or sale listings.
Unfortunately, this trend extends t many other collections, too. Price floors decreasing by 20% or more is a pretty common trend this week, although one must look much further. A total of 202 collections have lost price floor support in the past seven days, which is rather spectacular. Some of those changes may be related to the collection running out of momentum, but it remains rather spectacular regardless.
As the Ethereum price is a bit more bearish today, NFT collections may start to recover somewhat. The price momentum for Ether was bullish but not necessarily earth-shattering, as the price struggles to remain above $1,550. That is still a far cry from the all-time high of over $4,000, recorded in early 2021.
Is Now A Good Time To Pick Up Cheap NFTs?
Investing in non-fungible tokens is always a troublesome decision. It is essential to figure out the long-term appeal and purpose of the collection, although that is never easy. Most of the collections in this space serve no real utility, making them investments to avoid. Additionally, those looking to flip some of the NFTs with reduced price floors quickly will take tremendous risks, as the asset’s value may continue to drift lower for some time.
Furthermore, it remains unclear what will happen to the Ether price over the coming weeks. If ETH resumes its bullish momentum, NFT price floors may take another beating. However, it seems the markets have cooled off for a bit, although anything can happen.
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