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NFTs Have Performed Better Than Cryptos This Year: Nansen -Breaking

by Mike Robinson

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Nansen: NFTs have performed better than cryptos this year

Nansen’s blockchain analysis firm claims that NFTs, particularly metaverse-related, experienced a rapid period of growth, even compared with cryptocurrencies.

In its recent ‘NFT Indexes Quarterly Report’, Nansen experts revealed that the NFT market had witnessed 49.9% price growth in Q1, while the Bitcoin-tracking index had increased by just 1.9% in the same period.

Meanwhile, ‘Ether’, ‘Large Cap Crypto’, and DeFi-related indices appeared to be languishing in negative growth territory.

NFT Market outperformed the crypto market in the year to date with a 49.9% return if denominated ETH and 37.7% if denominated USD. The total market capitalization of Nansen’s ‘NFT-500 Index’ is around 6.16M ETH, or $18.6B USD.

Nansen’s broad ‘NFT-500:ETH Index’ tracks the performance of the leading 500 NFT collections on the network. Recently, the company rebalanced it and five smaller NFT-indexes which track NFTs in blue-chip, metaverse, gaming and social.

Metaverse NFTs repaid the most.

As Nansen’s data revealed, Metaverse NFTs led the market in Q1 2022 by generating up to returns of 130.9%, denominated in ETH, or 112% when denominated in USD.

The company also noted a slight decline in the land and real-estate NFT subcategories following the ‘Metaverse-20 Index’ rebalance. Meanwhile, both utility NFTs and metaverse avatars performed better during this period.

The most volatile segment of the NFT market was Metaverse NFTs, despite their growing popularity. Nansen equates this to the price of asset-typed Metaverse NFTs, such as The Sandbox’s ASSETS, says Nansen.

“Given the diverse range and types of Metaverse Asset NFTs, evaluating the prices of these NFTs is challenging. The relative inliquidity of Art NFTs can also cause asymmetric pricing information, which may contribute to volatility. This can make it difficult to evaluate these NFTs, particularly if they are very rare. Many of these market participants, thus, behave as speculators,” the researchers explained.

When indicating the least volatile NFTs, the researchers mentioned non-fungible tokens addressed to its ‘Blue Chip-10 index’, which tracks a collection of 10 widely recognised and well-established NFTs.

The Worst Game NFTs

Nansen’s ‘Gaming-50 Index’ displayed the biggest decline in performance during the first quarter. Gaming NFTs suffered losses up to 24.4% compared with other NFTs indexes.

The ‘Gaming-50 Index’ tracks the 50 biggest gaming NFTs by market capitalization, including Play-to-Earn games NFTs, Game-Fi (gaming with Decentralized Finance elements) NFTs, and role-playing game NFTs.

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