Snoop Dogg and his son, Champ Medici, are one of the most prominent celebrities in the Ethereum NFT ecosystem. As you follow, the leading altcoin is undergoing a crypto bloodbath. In this environment, Dogg argues, the bear market weeds out all the people who shouldn’t be in space.
Ethereum liquidity crisis pushes NFT skeptics out
You are following the latest crypto market bloodbath on Kriptokoin.com. Ethereum price has dropped from its high of $1,266 on June 26, 2022 to $1,035 at the time of writing. According to data from Nansen, the drop in Ethereum price is accompanied by shrinkage in NFT transactions.
The total volume of Ethereum NFT transactions decreased by 55% last month. In May 2022, NFT transactions accounted for 1.3 million ETH, while the number dropped to 584,000 ETH. In USD value, this represents a 70% reduction in NFT sales from $2.6 billion to $672 million.
Also, blue-chip NFT projects such as Bored Ape Yacht Club and Goblintown have not witnessed price increases. Additionally in digital art, there is an overall decline in collectible transactions on the Ethereum Blockchain. Still, the average price of NFTs from the top five collections on OpenSea, the largest peer-to-peer marketplace, has remained largely unchanged. NFT enthusiasts are more into free mints like Goblintown than collectibles with high base prices.
OpenSea noted sales of 1,476 million NFTs in June 2022, after sales of 1,478 million NFTs in May 2022. More digital art and collectibles are likely to be sold on the Ethereum Blockchain in July than in the last two months. Snoop Dogg, a prominent celebrity popular in the Web3 ecosystem, believes the crypto bloodbath is pushing the skeptics out of the ecosystem. Dogg noted:
I feel like this crypto winter has weeded out all the people who shouldn’t be in space and who are abusing the opportunities there.
The liquidity crisis has pushed key players in the Ethereum NFT space into a financial crisis. This separated skeptics from NFT advocates.
It is possible for record companies to enter the leading altcoin NFT ecosystem soon
In early 2022, Snoop Dogg announced plans to turn Death Row Records, a record label he had bought from MNRK Music Group, into an NFT label. Soon after, one of the NFTs in “Journey of the Dogg” was sold at an auction for over $100,000. Snoop has raised $17 million in NFTs under the pseudonym Cozomo de’ Medici. He told CNBC in an interview:
I know NFTs have a great opportunity to be big in music. Because sooner or later record companies will have to step in. Better served on Blockchain than coming home and sitting at the table and collecting cobwebs in the catalogue.
Meanwhile, Dogg’s son, Champ Medici, believes it’s not just tags that have entered the Ethereum NFT ecosystem. “Film studios, tech companies, beverage companies, everybody’s rushing to Web3. They see how big Dogg is in space,” he says.
The next big move in leading altcoin price is below $900
Murfski, a crypto analyst, evaluated the Ethereum price chart. The analyst noted that after sweeping the previous low of $1,000, Ethereum price could bounce back. However, recovery is unlikely. Therefore, the analyst believes that the next big move will be below $900.
Phoenix_Ash3s, a prominent crypto analyst, believes that if the altcoin price stays above $1,000, it can recover.
Analysts believe crypto risks rise, ETH could drop further
Analysts at Fairlead Strategies argue that the crypto market is still in a bloodbath and the Ethereum price could fall amid rising contagion risks. The forced liquidation of hedge fund Three Arrows Capital (3AC) has added to the uncertainty and increasing selling pressure on the altcoin.
Fairlead Strategies founder and managing partner Katie Stockton believes Ethereum’s fundamentals also point to increased downside risks. If the current level fails to hold, the next level of support for Ethereum price is below $500. Stockton says in a note:
The next support for Ethereum is near $490, a minor level based on the September 2020 high. More important support is around $363. Previous support (~$1,733) turned into resistance. But not very relevant. Like Bitcoin, ETH has recently been oversold from a long-term perspective. But a fairly recent downtrend in long-term momentum supports a long downtrend.
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