Will The NFT Market Provide Enough Support For ETH To Continue Its Recovery?

2022-05-11 | Selina Mathew

Will The NFT Market Provide Enough Support For ETH To Continue Its Recovery?

After a very negative performance in the previous five days, ETH exhibited signals of a possible bullish comeback on May 10th. With the continual highs of the FUD, the market is undeniably not off the hook.

To that end, ETH was trading at $2,308, down 3.72 percent at the time of this report. However, the rise of NFT via Instagram may be excellent news for Ethereum holders.

According to reports, Meta, formerly known as Facebook, aims to add NFT support into Instagram. Multiple blockchain networks, including Ethereum, Flow, Solana, and Polygon, will be supported through the integration.

NFTs and ETH...

NFTs have contributed significantly to the Ethereum network's growth and utility thus far. In the meantime, Instagram is one of the most popular social networking sites on the planet. Support for Ethereum NFTs will almost certainly result in a surge in NFT volumes on the Ethereum network, potentially driving up ETH demand.

Perhaps such a result would lead to further opportunities. ETH, for example, surged back from a low of $2,225 to $2,378 on May 9. It's worth noting that the glimmer of optimism in the shape of a green candle on May 10 was snuffed out by bears on May 11.

Lower ETH prices have a negative influence on the NFT market.

The continued decline in the price of ETH has resulted in cheaper gas expenses for NFT transactions. The indicator 'Gas Used' on Santiment shows a dramatic decline in gas usage, which is now at its lowest level in the past four weeks.

However, due to the persisting negative conditions, NFT trading volumes have fallen to their lowest monthly levels.

Given the aforementioned statistics and information, NFTs may not be enough to maintain the ETH token on a positive path. Nonetheless, they add to total ETH demand and, under bullish market conditions, would certainly lead to greater gains.


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