- Nansen 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.
Nansen 2022 Q1 NFT Report
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.
Metaverse, Gaming and Art NFTs Performance Q1 2022
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.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Celrbug.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods or services mentioned in this article.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Celrbug.com makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Celrbug.com is not an investment advisor. We do not give personalized investment 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.