Key Takeaways
- Nansen launched its quarterly NFT report right this moment.
- The report highlighted that non-fungible tokens outperformed the cryptocurrencies market, however there was quite a lot of variance between NFT sectors.
- NFT values had been proven to be “comparatively uncorrelated” to different crypto property.
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Nansen has revealed its quarterly report on non-fungible tokens. The NFT market has outperformed the cryptocurrency market to this point this yr, however there have been vital variations within the progress of various NFT sectors.
NFTs Outperform
In comparison with the general crypto market, NFTs have fared fairly properly in Q1 2022, although not all had been winners.
Nansen, the blockchain analytics platform, launched its 2022 quarterly NFT report right this moment, a report preceded by the agency’s indexing methodology that was formalized final January. In February, the agency launched its NFT market (NFT-500) fund that will observe the broader NFT market, in addition to the Blue Chip-10, Social-100, Sport-50, Artwork-20, and Metaverse-20.
The non-fungible token market has outperformed the broader cryptocurrency market efficiency year-to-date, as evidenced by the NFT-500 Index’s value appreciation of 49.9% to this point in 2022 when denominated in Ethereum. Nonetheless, the report famous how the NFT market was not resistant to the correction seen within the crypto market total from final February, however that downtrend appeared to reverse within the final month: the NFT-500 jumped 5.9% in March.
The totally 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), whereas the gaming and artwork NFT sectors’ progress decreased. The Gaming-50 index was the worst performing NFT sector Nansen tracked, fueled largely by declines in Play-to-Earn and Function Enjoying Sport NFTs. The Artwork-20 index’s decline was attributed primarily to a drop in costs for Generative Artwork NFTs.
The differing NFT sectors additionally differed wildly by way of volatility. Metaverse NFTs had been probably the most unstable, whereas Blue Chip NFTs, to which Nansen not too long ago added Azuki, Clone X, and Doodles, had been the least unstable.
A analysis analyst at Nansen, Louisa Choe, stated:
“The NFT phase of the cryptocurrency market is fast-growing and dynamic and has proved to resonate with retail traders over the previous yr, with vital progress in Q1 of 2022. As extra artists, creators, builders, and group members innovate with the NFT market we imagine we’ll see a rebalancing of which sectors change into its driving drive.”
Along with outperforming the remainder of the cryptocurrency market in Q1, NFTs had been additionally “comparatively uncorrelated” to different crypto property.
Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and several other different cryptocurrencies.
