The Ethereum price is lower in sympathy with bitcoin today, but that has not changed the long-term outlook for many ETH bulls. One of them is billionaire Mike Novogratz, who is at the helm of Galaxy Digital. Ethereum’s use cases happen to coincide with some of the biggest crazes in crypto, and as Novogratz points out, non-fungible tokens, or NFTs, are one of them.
Novogratz in a tweet calls ETH a “currency of culture,” the potential total addressable market (TAM) for which is a mystery. The crypto trader revealed that while he already owns “a lot” of ETH, he doesn’t have enough. The reason appears to be tied to Ethereum’s use case as a platform for NFTs, which he says “are not going away,” adding: “We are so early.”
— Mike Novogratz (@novogratz) August 12, 2021
NFTs & Ethereum
While many cryptocurrency users agree that NFTs are the wave of the future, not everyone is on the same page about where they will be built. Stephen Cole, a venture capitalist with more than 23K followers on Twitter, chimed in on Novogratz’s thread, saying with a smirk that while NFTs are not likely to go away, Ethereum’s role in the future of NFTs is questionable.
Indeed, while Ethereum is the go-to platform for NFTs, it has competition. The network has turned off some market participants because of its lofty fees and the potential for nefarious players to use the crowded network to their advantage and influence the fee outcome. Digital innovators are therefore turning to blockchains such as Binance Smart Chain as well as Solana and its Metaplex protocol to build their NFTs.
Ethereum developers are taking steps to add stability to gas fees on the network, but it isn’t expected to happen overnight. As a result, market participants can reportedly expect volatility both in the Ether price and in gas fees to persist for the foreseeable future.
Ether Price Outlook
The Ethereum price has already grown hand over fist this year so far, having advanced more than 300% in 2021. And Ether bulls including Novogratz are convinced that it has more runway for gains.
NFTs generated more than USD 1 billion in sales last month alone. NFT sales on Ethereum were USD 2 billion in Q1 2021. As more creators realize that they can obtain a bigger piece of the profit pie by selling their masterpiece — albeit art, music, or something else — as an NFT, Ethereum is sure to benefit.