Nansen: Blue Chip, Metaverse NFTs Drives Growth Of NFT Market 

NANSEN, a blockchain data analytics platform, released its quarterly study on nonfungible tokens, or NFTs, on Tuesday.

iexclusivenews reports that the analysis emphasized the NFT market’s year-to-date outperformance of the cryptocurrency market, predicting a market valuation of $80 million by 2025.

Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Art-20, and Nansen Metaverse-20 are six NFT indices weighted by market capitalisation and denominated in Ether (ETH).

This online news outlet understands that the NFT market continues to beat the cryptocurrency market year-to-date, according to the Nansen 2022 Quarterly NFT Report.

Nansen: Blue Chip, Metaverse NFTs Drives Growth Of NFT Market

With a 103.7 percent return when denominated in ETH and an 82.1 percent return when denominated in USD.

Despite a slump in global markets across most asset classes at the end of February 2022, the NFT-500 rose 5.9% in March over the previous 30 days.

NFTs have “proved to resonate with retail investors over the past year,” according to Louisa Choe, research analyst at Nansen.

Notably in Q1 of 2022, and only time will tell which industries become the market’s driving force as more and more artists, producers, and builders innovate.

The volatility of each of these sectors varies, and according to the Nansen research, Blue Chip NFTs, which are classified by market size, are the least volatile.

iexclusivenews Nigeria reports that Blue Chip has been assigned to OpenSea chart-topping collections such as Azuki, Clone X, and Doodles.

This is most likely due to their growing popularity in the crypto world and the fact that they can be considered strong long-term investments due to their track record of development and value.

The analysis, on the other hand, identifies Metaverse and Art NFTs as the most volatile segments of the NFT market.

The Metaverse portion includes land and real-estate NFTs, as well as avatar and utility NFTs, according to Nansen.

It can be difficult to assess prices, particularly for virtual land like Decentraland or The Sandbox.

The subjective aspect of value perception, as well as art’s somewhat illiquid character, contribute to its volatility when it comes to art NFTs.

The most popular component of art NFTs overall, according to Nansen, is generative art, and the majority of metaverse and art market players are “speculators.”

The Nansen indicators also hint to a slowing of the gaming ecosystem’s overall expansion.

When compared to other NFT sectors, the Gaming-50 index has seen the highest drop in performance year-to-date.

With Play-to-Earn, or P2E, NFTs and Role Playing Game, or RPG, NFTs accounting for the majority of the drop.

Traditional players have been cautious to accept NFTs, and companies like Good Luck Games, Ubisoft, and GameStop have been vocal about their concerns.

Nansen has published another statistic on the popular play-to-earn game Axie Infinity (AXS), noting the 11.1 million Axies held by over 2.8 million unique addresses.

However, iexclusivenews reports that the price of AXS continues to decrease following a $625 million loss due to a hacking issue involving Axie’s play-to-earn gaming platform’s underlying blockchain, the Ronin Network.