Ethereum Rally, Not an NFT Craze, Pushes the NFT Market Cap to $9.4 Billion

• ETH’s rallying price is boosting the NFT market cap.
• NFT market cap surged 40% in July.
• Most NFTs are Ethereum-based and are priced in ETH.

The NFT market capitalization has surged 40% since July, reaching a remarkable $9.4 billion at the time of writing, according to data from NFT Price Floor. 

But this isn’t a new NFT craze; analysts say the surge is almost entirely driven by the powerful rally in the price of Ethereum, which has reached almost 100% since the first week of July.

New to NFTs? If you’re just getting started, the terminology can be confusing. Here is CoinEdition’s complete guide on what NFTs are and how they work.

Why the Price of ETH Is Key for NFTs

Linking NFTs’ valuation to Ethereum’s price is logical, considering that most NFTs are based on the Ethereum mainnet, with their sales and valuations denominated in ETH. Hence, the recent push above $4,000, which triggered more bullish momentum for Ethereum and pushed the price above $4,600 at the time of writing, is having a significant effect on the NFT ecosystem.

In fact, the top 10 NFT collections by market cap are all Ethereum-based. This explains just how central the Ethere…

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