The explosion of non-fungible tokens (NFTs) is deeply tied to the Ethereum blockchain. Most NFTs are created and traded using the ERC-721 or ERC-1155 standards—both built on Ethereum. This means that to mint, buy, sell, or transfer an NFT, users need ETH to pay for gas fees. As a result, NFT activity directly impacts the eth price.
When interest in NFTs spikes—whether it's due to viral digital art, gaming items, or metaverse land sales—Ethereum network activity surges. This drives demand for ETH as users rush to participate. Such surges often result in higher transaction fees, and thanks to EIP-1559, that also means more ETH is burned. This dual effect of increased demand and reduced supply can lead to ETH price appreciation.
NFT marketplaces like OpenSea, Rarible, and Foundation operate primarily on Ethereum, reinforcing its dominance in the NFT space. Although other blockchains like Solana or Polygon have introduced NFT platforms with lower fees, Ethereum remains the go-to chain for high-profile projects and serious collectors due to its security, decentralization, and vast user base.
In essence, as long as NFTs remain relevant and popular, Ethereum will benefit both in usage and valuation. Monitoring the eth price during NFT trends can help users understand how cultural phenomena impact Ethereum’s economic ecosystem.