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Blue Chip and Metaverse NFTs propel growth of NFT Market, says Nansen report

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On Tuesday, blockchain knowledge analytics platform Nansen released its quarterly report on the state of nonfungible tokens, or NFTs. The report highlighted the fast progress of the NFT market over that of the cryptocurrency market year-to-date, and it predicts of an $80 million market cap by 2025. 

As Cointelegraph beforehand reported, Nansen not too long ago launched six NFT indexes weighted by market capitalization denominated in Ether (ETH): Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Artwork-20 and Nansen Metaverse-20.

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Based on the Nansen 2022 Quarterly NFT Report, The NFT market continues outperforming the cryptocurrency market year-to-date, placing in a 103.7% return when denominated in ETH and 82.1% when denominated in USD. Regardless of a downturn within the world markets throughout most asset courses on the finish of February 2022,  the final 30 days noticed an 5.9% enhance within the NFT-500 in March.

Louisa Choe, analysis analyst at Nansen, acknowledged that NFTs have “confirmed to resonate with retail traders over the previous yr” particularly in Q1 of 2022, and added that solely time will inform which sectors grow to be the market’s driving power as an increasing number of artists, creators and builders innovate.

The volatility of every of those sectors could differ, and the Nansen report revealed that Blue Chip NFTs, that are categorized by market capitalization, are the least unstable. OpenSea chart topping collections like Azuki, Clone X, and Doodles have been categorized as Blue Chip. That is doubtless as a result of they’ve grow to be well-known throughout the crypto group and could be thought-about good long-term investments as a consequence of their observe report of progress and worth.

Associated: OpenSea monthly volumes top $5B as NFTs continue to mainstream

Alternatively, the report thought-about Metaverse and Artwork NFTs to be most unstable phase of the NFT market. Nansen categorizes land and real-estate NFTs, avatar and utility NFTs underneath the Metaverse phase. Evaluating the costs, particularly of digital of land in Decentraland or The Sandbox, could be difficult.

When it comes artwork NFTs, the subjective nature of worth notion in addition to artwork’s comparatively illiquid nature are additionally contributing components to its volatility. Nansen illustrated that generative artwork is the most well-liked phase of artwork NFTs general, and acknowledged that the majority metaverse and artwork market individuals are inclined to behave as “speculators.”

The Nansen indeces additionally level to a lower in general progress throughout the gaming ecosystem. The Gaming-50 index noticed the most important drop in efficiency year-to-date when in comparison with different NFT sectors, with Play-to-Earn, or P2E, NFTs and Position Taking part in Recreation, or RPG, NFTs seeing the vast majority of the decline. Conventional players have been hesitant to embrace NFTs and are not afraid to voice their opinions like within the circumstances of Good Luck Games, Ubisoft or GameStop.

Just lately, Nansen published another report on the popular play-to-earn game Axie Infinity (AXS), citing the over 2.8 million distinctive addresses which are presently holding 11.1 million Axies. Nevertheless, after losing $625 million to a hacking incident involving Axie’s play-to-earn gaming platform’s underlying blockchain, the Ronin Community, the worth of AXS retains falling.