Blockchain analytics platform Nansen released its latest report titled “NFTs as Investments: How Are They Performing?”. The report is based on Nansen NFT indexes consisting of different NFT collections representing different NFT market segments such as gaming, art, metaverse, blue chip, and more. These indexes allow investors to track a specific NFT market segment and its performance.
According to the report, the NFT market has been outperforming the cryptocurrency market with a performance of 68.5% YTD when denominated in ETH. However, the NFT market has seen a -28.8% drop in the last 30 days.
Social NFTs have also been identified as the leaders of the NFT market, with an estimated market capitalization of USD 9.5 billion, which is approximately 79% of the NFT market capitalization. According to the research, NFTs’ brand recognition and perceived establishment are important factors driving its performance.
When it comes to volatility, blue chip and art NFTs ranked as the top most volatile type categories, with metaverse and game NFTs being the least volatile. The low level of volatility seen in metaverse and gaming NFTs could be due to the maturity of these markets as well as the interest and endorsement from major companies such as Meta and investment from VCs.
Read the full report here to find out more about how each segment is performing and how the NFT industry is doing overall.
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