As Ethereum NFTs grow, here’s what you should consider

• The number of ETH NFT sellers and buyers grew by more than 20% last month. 
• ETH’s price declined by nearly 3% last week, and most metrics looked bearish. 

Ethereum [ETH] NFTs were having a hard time for quite a few months as the number of mints plummeted. However, the scenario witnessed a trend reversal since last month as the numbers rose. Not only that, but user activity also registered an uptick as per the latest data. 

Read Ethereum’s [ETH] Price Prediction 2023-24

While this happened, ETH was able to once again cross the $1,900 mark. But the uptrend did not last long, as its price once again settled under that mark. Should investors expect ETH’s price to rise in the coming days? 

A closer look at Ethereum NFTs

A recent tweet posted by Nansen revealed that the number of ETH NFTs minted were declining. In fact, it reached its lowest level in May 2023 since June 2021. Not only that, but IntoTheBlock’s tweet also pointed out a similar declining trend in terms of NFT sales, as they reached 50,000.

However, things have finally started to change, as pointed out by Nansen’s tweet, as the number of mints increased by 48% in June. 

Last month, there were over 750 ETH NFTs minted. As per CRYPTOSLAM’s data, the number of NFT buyers and sellers also went up by 20% in the last 30 days. Surprisingly, a look at Santiment’s data painted a different picture.

After spiking in June, both Ethereum’s number of NFT trade counts and trade volume in USD declined. 

Source: Santiment

Ethereum investors are again disappointed 

Amidst these updates, ETH once again faced a price correction, as after crossing $1,900, it again settled under that mark. According to CoinMarketCap, ETH’s price declined by nearly 3% in the last seven days.

At the time of writing, Ethereum was trading at $1,860.19 with a market capitalization of over $223 billion. Are there any chances of ETH once again crossing $1,900 anytime soon? A look at its on-chain metrics gave a few answers. 

The bears are hard to beat

As per CryptoQuant, ETH’s exchange reserve was increasing, suggesting that it was under selling pressure. Its Coinbase Premium was also red, meaning that US-based investors were selling on that exchange.

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Santiment’s chart revealed that Ethereum’s MVRV Ratio was also down, further increasing the chances of a continued downtrend. Fewer new addresses were created last week to transfer ETH, as evident from the dip in its network growth.

However, the good news was that Ethereum’s Open Interest was declining. A drop in the metric suggested that the ongoing price trend might soon end. 

Source: Santiment