Nansen released its quarterly NFT report today.
The report highlighted that non-fungible tokens outperformed the cryptocurrencies market, but there was a great deal of variance between NFT sectors.
NFT values were shown to be „relatively uncorrelated“ to other crypto assets.
Share this article
Nansen has published its quarterly report on non-fungible tokens. The NFT market has outperformed the cryptocurrency market so far this year, but there have been significant differences in the growth of different NFT sectors.
Compared to the overall crypto market, NFTs have fared quite well in Q1 2022, though not all were winners.
Nansen, the blockchain analytics platform, released its 2022 quarterly NFT report today, a report preceded by the firm’s indexing methodology that was formalized last January. In February, the firm launched its NFT market (NFT-500) fund that would track the broader NFT market, as well as the Blue Chip-10, Social-100, Game-50, Art-20, and Metaverse-20.
The non-fungible token market has outperformed the broader cryptocurrency market performance year-to-date, as evidenced by the NFT-500 Index’s price appreciation of 49.9% so far in 2022 when denominated in Ethereum. Nevertheless, the report noted how the NFT market was not immune to the correction seen in the crypto market overall from last February, but that downtrend seemed to reverse in the last month: the NFT-500 jumped 5.9% in March.
The different segments (and corresponding indices) of the NFT market yielded disparate performances. The Metaverse-20 index grew by 129.4% in Q1 (denominated in ETH), while the gaming and art NFT sectors’ growth decreased. The Gaming-50 index was the worst performing NFT sector Nansen tracked, fueled largely by declines in Play-to-Earn and Role Playing Game NFTs. The Art-20 index’s decline was attributed primarily to a drop in prices for Generative Art NFTs.
The differing NFT sectors also differed wildly in terms of volatility. Metaverse NFTs were the most volatile, whereas Blue Chip NFTs, to which Nansen recently added Azuki, Clone X, and Doodles, were the least volatile.
Louisa Choe, a research analyst at Nansen, said:
“The NFT segment of the cryptocurrency market is fast-growing and dynamic and has proved to resonate with retail investors over the past year, with significant growth in Q1 of 2022. As more artists, creators, builders, and community members innovate with the NFT market we believe we will see a rebalancing of which sectors become its driving force.”
In addition to outperforming the rest of the cryptocurrency market in Q1, NFTs were also “relatively uncorrelated” to other crypto assets.
Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other cryptocurrencies.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Get up to $600 in AVAX or LUNA
With our goal of bringing the next 100 million people to crypto, Celsius is always looking to provide the best experiences and opportunities for our community. This includes looking for…
Despite a Shaky Ethereum, the NFT Market Is Booming
After a breakout year for the technology in 2021, NFT hype is still going strong. Ethereum NFT Market Roars Ethereum holders might have had a difficult start to 2022, but…
Floor Prices for High-Value NFT Projects Are Falling
The floor prices of top NFT collections are trending lower, with notable collections such as Bored Ape Yacht Club down almost 30% over the past month. NFT Mania Starts to…
Crypto Market in Freefall as Russia Invades Ukraine
Over $200 billion in value has been wiped out of the crypto market after Russia launched a full-blown military attack on Ukraine earlier this morning. The two biggest cryptocurrencies, Bitcoin…