NFT Revival Could Push Ethereum Past $3,800, Says Animoca Chair

• Yat Siu ties Ethereum’s growth potential to the resurgence of NFTs within its ecosystem.
• NFT market shows evolving dynamics, with sales transactions surging despite a decline in trading volumes.

On June 21, 2024, Yat Siu, executive chairman of Animoca Brands, identified the revival of the non-fungible token (NFT) market as a crucial factor for Ethereum's future price. He underlined the cultural importance of NFTs in Ethereum’s ecosystem and drew a direct connection between the cryptocurrency's record-high valuation in November 2021 and the peak of the NFT market boom. His remarks come as Ethereum shows a strong recovery, trading at above $3,500—a level last seen in April. This uptick is driven by growing adoption across decentralized finance (DeFi), tokenization, and institutional participation.

According to a CoinDesk report on June 21, the NFT market is undergoing a significant transformation. While second-quarter trading volumes dropped 35% year-over-year to $2.73 billion, sales transaction counts soared by 57% to 16.5 million. This shift suggests a move away from high-value individual sales and toward smaller, more frequent transactions, with Ethereum-based NFTs now averaging between $160 and $170. In addition, renewed interest in established collections like CryptoPunks has added momentum, helping push the total NFT market capitalization above $10 billion. Analysts forecast the market cap could hit $15 billion as user activity continues to recover.

The pool of monthly active NFT traders has also increased, climbing by 43% in the second quarter to an average of 485,575 users. By year’s end, industry experts anticipate the global NFT user base will grow to roughly 9.87 million, indicating a strong resurgence after previous market slowdowns.

Siu’s remarks highlight the correlation between Ethereum’s valuation and the NFT market's health. As a key player, Animoca Brands actively drives NFT adoption. The company recently announced that its Moca Chain will launch on mainnet in early 2025. It also fosters blockchain growth through partnerships that integrate NFTs into gaming and finance. These ventures strengthen Animoca’s influence within the sector, reflecting the increasingly interconnected trajectory of NFTs and Ethereum.

According to CoinMarketCap, Ethereum (ETH) was priced at $3,521.84 as of 13:42 UTC on June 21, while its 24-hour trading volume showed a slight 12.35% dip.