NFTs continue to command significant attention, allowing traders to buy, sell, and own unique digital items securely on the blockchain. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, boasts solid smart contract capabilities, making it the primary NFTs blockchain platform. The sales volume of NFTs on Ethereum was just under $45 million at the time of writing, up 144.79% in the last 24 hours.
However, Ethereum’s price has notoriously stagnated this year, and it is largely immune to the strong bullish market trend. The Ethereum community is becoming increasingly uncomfortable with this situation. Rumors began swirling online that the Ethereum Foundation would replace Aya Miyaguchi, its longtime executive director, and other top executives. However, Vitalik Buterin put an end to them with a post that Ethereum would “adamantly refrain” from the aggressive lobbying of politicians and regulators, an allusion to many crypto leaders’ push to join US President Donald *****’s inner circle.
An avant-garde NFT collection emerges as a powerful ally
Ethereum may have an ally in this time of need. A few minutes after Buterin’s defiant post, Milady NFT collection creator Charlotte Fang suggested Buterin “embrace Milady” and its hordes of supporters. Surprisingly, Buterin was quick to agree, changing his X profile picture to a Milady 9286 he had reportedly purchased shortly prior.
Milady represents a “neochibi” aesthetic, drawing inspiration from renowned artists like Takashi Murakami and Tokyo street fashion from two decades ago. The boundary-pushing, avant-garde Milady avatars are designed to embody a socially engaging, fashion-forward persona, inviting holders into a realm of unique aesthetics. The Milady style also aligns with the broader movement of so-called “avant-anime” art.
Milady NFTs hold value as a popular choice for profile pictures and collector artwork. The captivating avatars enhance social media profile engagement, while the unique visual style attracts art lovers from all walks of life. The utilities of the NFT collection are centered around personal branding and artistic expression, but the NFT space’s dynamic nature leaves room for all kinds of future developments.
Buterin closed a post affirming his role in determining the new Ethereum Foundation leadership with Milady. In the post, he emphasized that he had the sole power to decide who would run EF in the future. While conceding that giving the EF a proper board was among the goals of the ongoing reform within Ethereum, Buterin declared he would make all the decisions pending the completion of the reform. He discouraged certain entities’ attempts to create an environment “that is actively toxic to top talent,” pointing out that some of the blockchain’s best developers had been sharing “their disgust with the social media environment” with him.
Impact of the tweet on the cryptocurrency market
The tweet and new X picture sparked notable market reactions across different cryptocurrency trading pairs involving the Milady Meme Coin (LADYS). LADYS has no association with Charlotte Fang or her NFT collection. It merely pays homage to it, and less than 1% of the token’s total supply was airdropped to Milady NFT holders. Within the first 15 minutes of the tweet, LADYS gained 25%, increasing from $0.0096 to $0.012, according to CoinGecko data. An impressive trading volume growth of 300% accompanied the spike, with 50 million tokens being traded in that timeframe. A technical analysis of the token after the tweet showed a clear breakout from $0.010, its previous resistance level. The Relative Strength Index surged to 75, and community sentiment is currently 90% bullish.
This isn’t the first nod to LADYS from a crypto king. Elon Musk mentioned it in a tweet in May 2023, after which the coin saw a staggering growth of over 2,000%. It was listed by Crypto.com a few days later.
Statistical analysis of NFT and ETH price correlation
A statistical measure called the Pearson correlation coefficient quantifies the direction and strength of the linear relationship between two variables, in this case, NFT and ETH prices. A correlation of 1 indicates a strong, directly proportional relationship, meaning that as NFT prices increase, so does the price of Ethereum. A correlation of -1 indicates that as ETH prices rise, NFT prices tend to drop or vice versa. A correlation coefficient around 0 signifies a weak or a lack of a connection between the two variables.
There is a positive correlation between NFT and ETH prices, pointing to a general trend of their prices moving in the same direction. As the prices of NFTs increase, the price of ETH will also tend to rise.
It is worth pointing out that correlation strength varies by NFT category, meaning that the relationship between the two assets’ prices might deviate from one market segment to another. Factors such as demand-supply imbalances, market dynamics, and sentiment can impact certain NFT categories differently, resulting in variations in the correlation strength. For example, Milady and other art-related NFTs exhibit a pronounced positive correlation with the price of Ethereum due to high market demand, but virtual real estate NFTs or collectibles might show a weaker one. Grasping these nuances is crucial for traders to develop informed strategies within the NFT space.
A bright future for NFTs
Experts predict positive developments in the space. According to Technavio, the global NFT market size will grow by $84.13 billion between 2025 and 2029, corresponding to a CAGR of 30.3% during the forecast period. Rising demand for digital art is propelling market growth, with growing interest in NFTs from major brands.