NFT News

Despite the correction, the NFT market continues to outperform crypto.

AAccording to Nansen, an Ethereum-focused data analytics firm, the market for non-fungible tokens (NFTs) has outpaced the broader crypto market this year in both ethereum (ETH) and US dollar terms.

According to their new study, the NFT market has outperformed the crypto market by 68.5 percent when denominated in ETH and 20.9 percent when denominated in USD year to date. With crypto prices falling for the larger part of the year, this shows that the NFT space has held up better than ETH.

At the time of writing, the price of ETH had dropped by 32% since the start of 2022, while bitcoin (BTC) had dropped by 19% in the same time frame.

Since September 2021, Nansen has produced six NFT indexes to track performance across the NFT market. The Nansen NFT-500 index is one of them.

“Index investing,” Louisa Choe, Research Analyst at Nansen, told Cryptonews.com, “usually tries to offer investors exposure to a market segment rather than picking winners.”

Nansen added that when it comes to specific sectors of the NFT industry, its Art-20 index reveals that art NFTs are the most profitable, with a year-to-date return of 192 percent in ETH and 108 percent in USD.

The gaming component of the NFT market was on the other end of the spectrum.

Gaming-related NFT collections, although being labelled by Nansen as the “fastest-growing section of the NFT industry,” had the worst result this year, with a return of 42 percent in ETH and just 14 percent in US dollars, according to the research.

Nansen also stated in the research that the gaming-focused portion of the NFT business is one of the least volatile segments of the market.

The reason for this, according to Nansen, could be that the gaming area is “mature and has an expanding user base.” It cited the entry of big corporations into the field, such as Grayscale, which offers a Decentraland (MANA) investment trust, as one aspect that makes the linked NFTs less volatile as investments as proof.

It’s worth mentioning that the gaming category makes only a small portion of the overall NFT market, with a market share of just under 8%.

Social NFTs, which incorporate profile photographs for use on social media, are by far the most popular component. According to Nansen’s research, this segment accounts for 79 percent of the total NFT market.

We are the biggest NFT marketing agency with the reach over 30 million people.

This article is just for educational purposes.

Make your own exploration before making any form of investment, as always.

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