The non-fungible token (NFT) The market saw significant growth in the first quarter of 2022, outpacing the cryptocurrency market, according to a new report from blockchain analytics firm Nansen. The report highlighted the rapid growth of the NFT market and predicted a market capitalization of $80 million by 2025.
Nansen released five indices to track which NFTs are the most suitable investments for NFT collectors and traders. This comprises Blue Chip-10 (Top 10 NFTs that can be held as a long-term investment), Social-100 (Top 100 social NFTs), Game-50 (Top 50 NFT games), Art-20 (Top 20 art NFTs) , Y metaverse-20 (Top 20 NFTs in the metaverse).
Blue Chip NFTs rank as the most popular NFTs by market capitalization and are the least volatile. Some of the Blue Chip NFTs are OpenSea chart-topping collections, such as Azuki, Clone X, and Doodles. In particular, these NFTs are considered good long-term investments due to their track record of growth and value.
Art NFTs are the most volatile and underperforming segment of the NFT market. Nansen classifies land and real estate NFTs, avatars, and utility NFTs in the Metaverse segment.
The report highlights that the Blue Chip-10 index showed a growth of 42.4%, the Metaverse-20 index grew by 129.4% in the first quarter. The Gaming-50 index was the worst performing NFT sector, posting a 24.4 percent drop. This was largely driven by the Play-to-Earn and Role Playing Game NFTs.
Traditional gamers have been hesitant to embrace NFT and are not afraid to express their opinions, as in the case of Ubisoft. The Social-100 index showed an increase of 49.9 percent so far this year. On the other hand, the Art-20 Index saw a 5.5 percent decline that was mostly attributed to a drop in generative art NFT prices.
According to the Nansen 2022 quarterly report, the NFT market has also outperformed the overall cryptocurrency market year-to-date, as evidenced by the NFT-500 Index price appreciation of 49.9% year-to-date. 2022. The NFT 500 index is the overall NFT index.
The report noted that the NFT market was not immune to the correction seen in the broader crypto market since last February, but that downward trend appeared to reverse in the past month: the NFT-500 jumped 5.9% in March.
โNFTs represent a rapidly growing and dynamic segment of the cryptocurrency market, and this is especially the case for retail investors. However, for NFT market participants looking to collect, trade or invest in NFTs, it is imperative to understand the competitive landscape of the NFT market,โ the company added.
