Thread by @heybentan

NFT prices vs ETH prices.

Did a quick side-by-side analysis of NFT floor (from @DuneAnalytics vs ETH prices from @CoinMarketCap over the last 30 days.

Observations Below: ⬇️

1. During periods of ETH volatility to the downside, NFT seems to perform better as investors may want to seek better 'perceived returns'.

2. When ETH trade sideways, NFT seems to perform well too. Also helps that during Aug, NFT got a TON of media and international attention.

3. When ETH goes up (like now), NFT seem to have a dip. It's natural, as it now 'costs more' to purchase an NFT at the same ETH price as before.

1 ETH = 1 ETH, and its now worth 20% more in just a few days.

4. OpenSea volume also shows the same as price trend.

With increase volume (esp. buying volume), price picks up. When volume dips (and selling volume > buying volume), price dips.

5. Unique buyers and sellers have also been generally trending up, which is a good sign for the NFT industry as a whole.

So where do we go from here? This is what I feel may happen.

- Me-too NFT projects will face INTENSE volatility as they wrestle to be the next BAYC
- Blue chip NFTs (Punk/BAYC) will gradually trend up as more funds seek stability
- Art Blocks will go up due to smart $ and funds

Conclusion:

1. Invest with $ you can afford to lose
2. Take some chips off the table
3. Buy what you believe, believe what you buy
4. Always invest in quality
5. Think in years/decades, not hours/days
6. Stop with the 'what's floor, when moon, when lambo'
7. Enjoy being early :)