Coin Metrics reported in their most recent report that NFT trading volumes are often affected by rising prices for Ethereum (ETH), as NFTs are mainly bought and sold using the ETH.
The analysts stated that while this may be true during "some particularly extreme price swings", the data still does not show a consistent correlation between the ETH market price and the sales volumes on the dominant NFT marketplace OpenSea.
OpenSea volumes and ETH prices have moved in opposite directions from the beginning of 2021. There have been at least three significant divergences in May 2021 (November 2021), January 2022, and February 2022. The data shows that ETH and NFT volumes sometimes move in tandem, contrary the common belief that higher ETH costs are bad for NFTs.
"[...] sometimes they are highly correlated like August 2021 but other times they're negatively related, like November 2021," analysts stated.
The NFT market, they concluded, should be considered "relatively distinct" from the wider crypto space and "may for most part move independently from the rest of crypto market."
The report also addressed the wide range of digital art markets, noting that certain collections have had "consistent success" while others have experienced "big peaks or valleys."
It cited Bored Ape Yacht Club (BAYC), and Doodles as examples of "relatively constant" price growth. However, collections such as Art Blocks Curated reached their peak during the 2021 "JPEG summer", and have yet to recover.
The report indicated that all NFT collections were tracked and that large sales had picked up, although they have not reached the same levels as in August 2021 when the NFT craze was at its peak.