Image credit : 3landers NFT
Findings from an analysis firm show NFTs outperform cryptocurrencies and might present a way out of the crypto slump.
Barely into the first quarter of this year, crypto markets have gone through a severe slump that’s gotten its holders slightly worried. However, NFTs are flexing their resiliency amidst the turn of events.
A recent report from Nansen, a blockchain analytics platform, points to Ethereum NFTs’ powerful performance in the early goings of 2022. On the contrary, crypto markets have gone on a downward spiral and continue to do so as of this writing.
NFTs Resilient in Dodging Crypto Bear Market
Nansen has been the go-to tool for top NFT traders who want to see how the market performs. The company’s analysis discovered that the NFT market has prevailed over the entire crypto market in terms of Ethereum (ETH) and US dollars (USD). Case in point, between January 1 and March 9, Nansen’s NFT-500 index increased in ETH value by 68.5%. That figure translates to 20.9% when priced in USD.
Comparatively, the same report shows Bitcoin’s (BTC) value dwindled by 16.2% over the same period. On the other hand, ETH’s value has dropped by 29.9%. While the NFT-500 dipped to 28.8% in ETH and 38.5% in USD over the last 30 days of the report’s preparation, it is evident that NFT still outclassed crypto by some margin three months into the year.
Notably, the numbers are specific to the top 500 Ethereum NFTs. The same cannot be said about lower-performing ETH NFTs or other NFTS on various blockchains.
One more critical point to note is the report’s take on NFTs in relation to the price of ETH and BTC. Concisely, there exist negative correlations between NFT-500 and both aforementioned cryptos. In simpler terms, as the values of ETH and BTC decrease, the value of NFTs included in the NFT-500 increase (in ETH). This information sheds light on the correlation between NFT and crypto values, which has been the subject of much speculation.
Six New NFT Indexes Launched by Nansen in February
In February, Nansen launched six new NFT indexes. Each index tracks major NFT categories, and the NFT-500 is among those. The complete list includes:
- NFT-500 (top 500 NFTs)
- Blue Chip—10 (top 10 NFTs based on market cap
- Social—100 (popular profile pic (PFP) NFTs)
These indexes would likely remind aficionados of the S&P 500 (Standard and Poor’s 500). To those reading about it for the first time, the S&P 500 is a stock market index. It explicitly tracks how 500 large companies cataloged on US stock exchanges perform based on the stock price. The S&P also has several indexes specifically tracking crypto.
These NFT indexes from Nansen provide traders with an advanced way of following different NFT markets. The indexes are proving to be handy in forming quality NFT analysis.
Moreover, despite the seeming volatility of the novel NFT space, Nansen’s report shows how certain NFTs are currently showing themselves to be sound investments compared to some of the more established cryptocurrencies.
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