NFTs seem to be fueling the Ethereum (CRYPTO: ETH) rally as the recently upgraded crypto continues its ascent toward all-time highs.
Culture is currency and the trend is only going to accelerate from here, Coinshares’ Meltem Demirors said Friday on CNBC’s “Squawk Box.”
NFT Culture: More than $3 billion of NFTs were traded in August alone and NFTs have become a $5 billion asset class, Demirors said.
“What we are seeing is the assets within the crypto asset ecosystem no longer have a beta of one to Bitcoin (CRYPTO: BTC).”
Bitcoin used to be the catalyst that would pull other crypto assets with it as it traded higher, but now there are a lot of different channels through which demand is coming, she said.
Although some people think NFT prices are stretched, it’s “no more ridiculous” than what is happening with AMC Entertainment Holdings Inc (NYSE:AMC), Demirors said, adding that the fundamentals in the crypto space are “much more sound.”
She told CNBC that she expects the crypto rally to accelerate into the fourth quarter.
Host Joe Kernen said he can’t help but think he is going to look back down the road and say “how stupid were we?”
“I don’t think that’s the case at all Joe, culture is currency. That’s really what’s happening with NFTs … we now have a way to transact in culture,” Demirors responded.
What About Dogecoin? Kernan then asked about Dogecoin (CRYPTO: DOGE): “Dogecoin should have given us pause, should it not?”
Dogecoin is part of the culture and the meme has become tokenized and fractionalized as an NFT, she said.
The future is going to be very different from the past, Demirors told CNBC.
“Things that become life-changing technologies and market-changing trends often start out as toys, they start out as jokes. So I think we can’t dismiss the trend.”
Just because it looks silly, doesn’t mean it won’t be a really significant component of the market over the next few years, Demirors noted.