Animoca Brands co-founder Yat Siu believes Ethereum could be going up by a factor of ten. This increase can only take place if the community collectively accepts NFTs as truly valuable cultural artifacts. This new interest in NFTs is expected to help Ethereum’s price break through its previous all-time high.
Siu’s prediction is especially interesting given how fragmented NFT trading across different blockchains has recently become. Despite this fragmentation, Siu thinks that Ethereum’s cultural impact could be an enduring asset.
As recently as July 21, Siu was posting on X, claiming the inverse relationship between the price of Ethereum and the vibrancy of the NFT market activity. Siu’s forecast for the NFT revival to push Ethereum’s price beyond its record-high has come true. Some report that peak at $4,800, while others profess it hit $4,900.
Ethereum’s price action has been very bullish recently, as the second largest cryptocurrency recently broke above the $3,800 level for the first time since December 2021. In fact, the cryptocurrency’s historical peak occurred in November of 2021 — right at the height of the NFT boom.
For example, Siu pointed to the long-term correlation between Ethereum’s price and NFT market activity. He further illustrated how ETH is the ultimate utility token in terms of value to participate in various activities.
"ETH is a utility token and holding it is for the opportunity to engage in something important i.e to spend such as in DeFi, some token and yes also NFTs. This is also the reason why ETH rising is bullish on-chain because we spend unlike BTC users whose culture is infinite HODL." - Yat Siu
Siu argues that NFTs should be understood as more than mere financial instruments, claiming that they lie at the center of Ethereum’s cultural economy.
"NFTs are the backbone of the Ethereum cultural economy much more than just financial, it’s about culture, status and ultimately belonging." - Yat Siu
He likens NFTs to high-end fashion items. He argues that their real worth lies in their cultural and social value.
"You don’t buy a Birkin bag to put stuff in it just as much as you don’t buy a Rolex to tell the time. NFTs represent the cultural, social and symbolic power of a community." - Yat Siu
Siu understands the increasing fragmentation of NFT trading among blockchains. Despite these setbacks, he is still enthusiastic about Ethereum’s long-term prospects and emphasizes that NFTs are important cultural assets that encourage community participation.
Ethereum’s all-time high first made waves in November 2021. It peaked at nearly $4,800 at the height of the NFT craze. Siu's analysis suggests that a similar surge in NFT interest could propel Ethereum's price above this previous high.
