Blue Chip and Metaverse NFTs propel progress of NFT Market, says Nansen report

On Tuesday, blockchain information analytics platform Nansen launched its quarterly report on the state of nonfungible tokens, or NFTs. The report highlighted the speedy progress of the NFT market over that of the cryptocurrency market year-to-date, and it predicts of an $80 million market cap by 2025. 

As Cointelegraph beforehand reported, Nansen not too long ago launched six NFT indexes weighted by market capitalization denominated in Ether (ETH): Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Artwork-20 and Nansen Metaverse-20.

Based on the Nansen 2022 Quarterly NFT Report, The NFT market continues outperforming the cryptocurrency market year-to-date, placing in a 103.7% return when denominated in ETH and 82.1% when denominated in USD. Regardless of a downturn within the world markets throughout most asset lessons on the finish of February 2022,  the final 30 days noticed an 5.9% improve within the NFT-500 in March.

Louisa Choe, analysis analyst at Nansen, said that NFTs have “confirmed to resonate with retail traders over the previous 12 months” particularly in Q1 of 2022, and added that solely time will inform which sectors turn into the market’s driving drive as an increasing number of artists, creators and builders innovate.

The volatility of every of those sectors might differ, and the Nansen report revealed that Blue Chip NFTs, that are categorized by market capitalization, are the least risky. OpenSea chart topping collections like Azuki, Clone X, and Doodles have been categorized as Blue Chip. That is probably as a result of they’ve turn into well-known inside the crypto group and might be thought-about good long-term investments as a result of their monitor report of progress and worth.

Associated: OpenSea month-to-month volumes high $5B as NFTs proceed to mainstream

Alternatively, the report thought-about Metaverse and Artwork NFTs to be most risky section of the NFT market. Nansen categorizes land and real-estate NFTs, avatar and utility NFTs underneath the Metaverse section. Evaluating the costs, particularly of digital of land in Decentraland or The Sandbox, might be difficult.

When it comes artwork NFTs, the subjective nature of worth notion in addition to artwork’s comparatively illiquid nature are additionally contributing components to its volatility. Nansen illustrated that generative artwork is the preferred section of artwork NFTs total, and said that the majority metaverse and artwork market contributors are likely to behave as “speculators.”

The Nansen indeces additionally level to a lower in total progress inside the gaming ecosystem. The Gaming-50 index noticed the most important drop in efficiency year-to-date when in comparison with different NFT sectors, with Play-to-Earn, or P2E, NFTs and Position Enjoying Sport, or RPG, NFTs seeing nearly all of the decline. Conventional avid gamers have been hesitant to embrace NFTs and are not afraid to voice their opinions like within the instances of Good Luck Video games, Ubisoft or GameStop.

Just lately, Nansen printed one other report on the favored play-to-earn sport Axie Infinity (AXS), citing the over 2.8 million distinctive addresses which might be at present holding 11.1 million Axies. Nevertheless, after shedding $625 million to a hacking incident involving Axie’s play-to-earn gaming platform’s underlying blockchain, the Ronin Community, the worth of AXS retains falling.