- Ethereum’s NFT market suffered a decline in trading volume, raising concerns about its future vitality.
- PFP NFTs saw a significant drop in prices, reflecting changing market preferences.
In recent times, new players like Friends.Tech have entered the NFT market, but Ethereum [ETH]The NFT ecosystem tells a different story.
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Interest in Ethereum NFTs is declining
Data from Messari paints a grim picture, with Ethereum NFT trading volumes hitting an all-time low. This decline indicated a significant decline in user engagement and transaction activity.
Source: Messari
The consequences of this decline in interest are far-reaching. Ethereum’s once-booming PFP (profile picture) NFT, which gained immense popularity, was facing significant price declines.
Additionally, many of these collections saw their minimum prices decline by at least 30%, causing collectors and investors to worry about the declining value of their holdings.
Even blue-chip NFTs on the Ethereum network were not untouched by this trend. Interest was waning, and this was reflected in falling fees on the network.
The decline in transaction fees indicates less activity and demand for Ethereum NFTs, suggesting that the once booming market is losing its luster.
What does decline represent?
According to Glassnode data, the total fees paid fell to an 8-month low of 85.550 ETH. Lower activity leads to lower fees, pointing to the reduced appeal of Ethereum’s NFT offerings.
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#Ethereum $ETH Total fees paid (7D MA) hit 8-month low of 85.550 ETH
The previous 8-month low of 87.705 ETH was seen on September 11, 2023
View metrics: pic.twitter.com/ySzKH68ik4
– Glassnode Alerts (@glassnodealerts) 18 September 2023
This slowdown was not limited to NFTs only; The price of Ethereum was declining for the last one month. Currently, it was trading at $1651, which shows a notable decline. This price drop impacted the overall sentiment around Ethereum and its NFT market.
This price decline was accompanied by a worrying trend in retail interest. Data from Glassnode showed that the number of addresses holding 0.1+ coins recently hit a 1-month low, reflecting falling retail presence in Ethereum.
Fewer retail investors could impact the broader acceptance and popularity of the Ethereum network.
Source: Glassnode
Realistic or not, here is the market cap of ETH in terms of BTC
Traders should be alert
Traders are navigating this uncertain situation, and put-to-call ratios have experienced a decline on most exchanges. This ratio indicates the balance between options traders who are betting on a price increase (call options) and those who are betting on a price decrease (put options).
Concurrently, Ethereum’s implied volatility (IV) was rising at press time. IV measures the market’s expectation of future volatility. An increase in IV suggests that market participants expect greater price volatility, which can be both an opportunity and a risk for traders.
Source: Block
Source: ambcrypto.com
