Blue Chips and Metaverse NFTs Drive NFT Market Growth, Nansen Report Says

On Tuesday, blockchain data analytics platform Nansen released its quarterly report on the status of non-fungible tokens (NFTs). The report highlights the rapid growth of the NFT market relative to the cryptocurrency market this year and predicts a market cap of $80 million by 2025.

As previously reported by Cointelegraph, Nansen recently launched six market cap-weighted NFT indices denominated in Ether (ETH): Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Art-20 and Nansen Metaverse 20.

According to the NFT Nansen 2022 Quarterly Report, the NFT market continued to outperform the cryptocurrency market this year, with a return of 103.7% in ETH and 82.1% in USD. The NFT-500 index rose 5.9% in March over the past 30 days, despite a global slowdown in most asset classes through February 2022.

Nansen’s research analyst Louisa Choe said NFTs “have proven to attract retail investors over the past year,” especially in the first quarter of 2022, adding that only time will tell which sectors will be the drivers of the market , as more and more artists, creators and builders innovate.

Volatility can vary across these industries, and the Nansen report shows that blue-chip NFTs by market capitalization are the least volatile. OpenSea’s best-selling series such as Azuki, Clone X and Doodles have been classified as blue chips. This may be because they are already well known in the cryptocurrency community and can be considered a good long-term investment due to their history of growth and value.

On the other hand, the report found that Metaverse and Art NFTs are the most volatile segments of the NFT market. Nansen categorizes land and real estate NFTs, avatars, and utility NFTs into the Metaverse segment. Assessing prices, especially for virtual land in Decentraland or The Sandbox, can be challenging.

When it comes to artistic NFTs, the subjectivity of value perception, as well as the relative illiquidity of art, are also factors that contribute to its volatility. Nansen stated that generative art is the most popular part of art NFTs, and said that most participants in Metaverse and the art market tend to behave like “speculators.”

The Nansen Index also indicates a slowdown in the overall growth of the gaming ecosystem. Compared to other NFT industries, the Gaming-50 Index has posted the biggest decline so far this year, with Play-to-Earn or P2E, NFTs and Role Playing Games or RPGs, NFTs accounting for most of the decline. Traditional gamers are hesitant to adopt NFTs Decisions and not afraid to express your opinion like Good Luck Games, Ubisoft or GameStop.

Recently, Nansen released another report on the popular game game to make money (P2E) Axie Infinity (AXS), citing over 2.8 million unique addresses currently holding 11.1 million Axies. However, the price of AXS continued to fall after $625 million was lost in a hack involving the underlying blockchain of Axie’s gaming platform Ronin Network.

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