Over 200 NFT Pools Have Their Price Floors Broken This Week Due to Bullish ETH Momentum – CryptoMode
When the Ethereum price goes up, non-fungible token price floors will often plummet. The past week illustrated this point once again, with over half a dozen collection floors dropping over 50%. Of course, such a drop is not necessarily indicative of future price momentum, but it is problematic.
Ethereum NFT Price Floor Takes a Beating
It was only a matter of time before most NFT collections saw the price floors return to more normal levels. These projects have relatively common short-term pump-and-dump momentum, but it is difficult to sustain long-term growth. Also, the price floors will be significantly reduced when the ETH price enters a bullish mode. More specifically, it applies to floors priced in ETH and not necessarily USD.
This week has proven to be one tough week for dozens of Ethereum-based collections. Project 0x038 is the biggest “loser” after the price floor has fallen by 80%. However, things aren’t looking much better for Got Hates NFTees, Mirakai Scrolls, NFT Worlds, Moonbirds Oddities, Tableland Rigs and Critterz. All of their price floors fell by over 50% this week, regardless of any meaningful changes in the number of collection owners or sales listings.
Unfortunately, this trend extends to many other collections as well. Price floors going down by 20% or more is a fairly common trend this week, although one has to look much further. A total of 202 collections have lost price floor support in the last seven days, which is quite spectacular. Some of these changes may be related to the collection running out of momentum, but it remains pretty 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 worldwide, as the price is struggling to stay above $1,550. It is still far 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. Figuring out the long-term appeal and purpose of the collection is important, although it is never easy. Most of the collections in this room serve no real use, making them investments to avoid. Additionally, those looking to flip any of the NFTs with reduced price floors will quickly take on a huge risk, as the asset’s value may continue to go lower for some time.
Furthermore, it is still unclear what will happen to the Ether price in the coming weeks. If ETH resumes its bullish momentum, the NFT price floors could take another beating. However, the markets seem to have cooled down a bit, although anything can happen.
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