The central theses
- Nansen launched its quarterly NFT report in the present day.
- The report highlighted that non-fungible tokens outperformed the cryptocurrency market, however there have been main variations between the NFT sectors.
- NFT values proved to be “comparatively uncorrelated” with different crypto belongings.
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Nansen has printed its quarterly report on non-fungible tokens. The NFT market has outperformed the cryptocurrency market thus far this yr, however there have been important disparities within the progress of the completely different NFT sectors.
In comparison with the general crypto market, NFTs carried out fairly effectively within the first quarter of 2022, though not all have been winners.
Nansen, the blockchain analytics platform, launched its quarterly 2022 NFT report in the present day, a report that preceded the corporate’s indexing methodology formalized in January final yr. In February, the corporate launched its NFT Market Fund (NFT-500), which might monitor the broader NFT market in addition to Blue Chip-10, Social-100, Sport-50, Artwork-20 and Metaverse-20.
The non-fungible token market has outperformed the general cryptocurrency market year-to-date efficiency as evidenced by the NFT 500 index’s 49.9% value improve thus far in 2022 when denominated in Ethereum. Nonetheless, the report famous that the NFT market was not proof against the correction seen within the crypto market as an entire final Februaryhowever that downtrend appeared to reverse final month, with the NFT-500 up 5.9% in March.
The completely different segments (and corresponding indices) of the NFT market carried out in a different way. The Metaverse 20 index grew 129.4% (ETH-denominated) within the first quarter, whereas progress within the gaming and humanities NFT sectors slowed. The Gaming 50 Index was the worst-performing NFT sector Nansen tracked, primarily attributable to declines in play-to-earn and roleplaying NFTs. The drop within the Artwork 20 Index was primarily attributed to a value drop in Generative Artwork NFTs.
The assorted NFT sectors additionally differed drastically by way of volatility. Metaverse NFTs have been essentially the most unstable, whereas blue-chip NFTs, to which Nansen has not too long ago joined Azuki, clone Xand Doodles, have been the least unstable.
Louisa Choe, Analysis Analyst at Nansen mentioned:
“The NFT section of the cryptocurrency market is rising rapidly and dynamically and has carried out very effectively with retail buyers over the previous yr, with important progress within the first quarter of 2022. As extra artists, creators, builders and group members innovate with the NFT are market, we consider we are going to see a rebalancing of which sectors will turn into its drivers.”
Not solely did NFTs outperform the remainder of the cryptocurrency market in Q1, however they have been additionally “comparatively uncorrelated” with different crypto belongings.
Disclosure: On the time of writing this text, the writer of this text owned BTC, ETH and several other different cryptocurrencies.
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