The NFT Market Is Growing More Than The Cryptocurrency Market, According To Nansen Report

Nansen, a blockchain data analysis company, recently published its quarterly NFT research. The analysis showed that the NFT market is experiencing rapid growth . And according to forecasts, sales in this sector will reach $ 80 billion by 2025. The company also highlighted in its report that the NFT market has outperformed the cryptocurrency market. The yield for the year was 103.7% in ETH and 82.1% in dollars. Despite the decline in global markets across most asset classes at the end of February 2022, the NFT-500 index rose 5.9% over the previous 30 days in March.

“The NFT market continues to outperform the cryptocurrency market YOY with a 49.9% YOY return when denominated in ETH,” said Louise Cho, who wrote the report.

According to the Nansen report, the volatility of each of these sectors is different . For example, blue chip NFTs are the least volatile. Azuki, Clone X and Doodles were also classified as blue chips. Perhaps this is due to their growing popularity, as well as the fact that they can be considered as a reliable long-term investment.

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The report also indicated that the Social-100 index remained unchanged. However, the share of NFT Access & Membership and NFT Utility has increased. And if this index is measured in ETH, then it grew by 49.9% over the year, and by 37.5% when measured in dollars. NFT Access & Membership and NFT Utility also include those NFTs that grant holders access to certain events, products, or services. For example, Mola held an exclusive Mola Chill 2303 event last month, which could only be accessed by those who pre-purchased membership cards in the form of NFTs.

The famous project Bored Ape Yacht Club also held a similar event last July. And according to the report, exclusive access social clubs could be the driving force behind the growth of NFT Access & Membership.

However, the report also pointed out the unstable side of the NFT space . According to the report, it was the metaverses and art-NFT. Part of the metaverse includes NFTs in the form of land, real estate, and avatars. Valuation can be difficult. Especially for such virtual lands as Decentraland or The Sandbox.

In terms of artwork, Nansen noted that generative art is the most popular component of NFT art in general and that most players in the metaverse and the art market are “speculators”.

The growth of the gaming industry in the NFT space is also declining. The Gaming-50 index fell 24.4 percent. This indicator was the most significant drop among all NFT directions that were included in the report.

Despite this, in general, the NFT market is experiencing rapid growth compared to the cryptocurrency market. According to the company that conducted the study, NFTs are a fast-growing and dynamic area of ​​the cryptocurrency industry. And this is especially true for retail investors.

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