The NFT transaction volume on the Ethereum (ETH) network has plummeted. Noting the importance of NFTs and their role in gas fees, analysts believe that the drop in volume could increase the bearish sentiment among ETH investors.

The Stacks Podcast recently explored the relationship between Ethereum and the NFT floor price. Punk9059, one of the leading experts in the NFT industry, joined this popular podcast to share his thoughts on the relationship between Ethereum and NFT floor prices.

As Ethereum gained momentum, it has historically been positive for NFT prices, although most investors are pricing their digital arts and collectibles in ETH. Punk9059 believes that Ethereum price and NFT floor prices have a direct correlation.

volumes

Due to the fall in the Ethereum price, this has resulted in capital outflows from NFTs as investors withdraw cash from floating assets. Therefore, higher Ethereum prices are a dream scenario for NFT holders as they push the floor prices higher.

As of yesterday, the monthly volume of NFT marketplaces decreased by 41% from June 2022 to $626.11 million. July was the first month with more sellers than buyers. This resulted in a decrease in NFT trading volumes. July 30 was the first time NFT volumes fell year-over-year. Senior analyst Checkmatey sees this as a sign of declining demand. Therefore, the price of Ethereum may also decrease in line with the decreasing demand.

Ethereum Virtual Machine

Analysts predict that Ethereum price will lose momentum again. The analyst known in the crypto market as Wolf claims that Ethereum's recovery that started on July 22 is V-shaped, with the first target of $1,685 being passed and the analyst's next target for ETH at $2,492 and the third target at $3,373. The analyst argues that Ethereum price pullback to $1,500 is likely provided it completes the V-shaped recovery predicted in the roadmap for the leading altcoin.

Despite the significant drop in Ethereum price since the beginning of the year, the CoinMarketCap cryptocurrency community predicted that ETH would reach $2,529 by the end of July 31. 11,529 people participated in the survey. This meant that ETH would increase by 140% from its current price. However, Ethereum again failed to deliver what was expected and is currently trading at $1,714.