Blue Chip and Metaverse NFTs propel growth of NFT Market, says Nansen report
On Tuesday, blockchain data analytics platform Nansen released its quarterly report on the state of nonfungible tokens, or NFTs. The report highlighted the rapid growth 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 previously reported, Nansen recently released 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 Art-20 and Nansen Metaverse-20.
According to the Nansen 2022 Quarterly NFT Report, The NFT market continues outperforming the cryptocurrency market year-to-date, putting in a 103.7% return when denominated in ETH and 82.1% when denominated in USD. Despite a downturn in the global markets across most asset classes at the end of February 2022, the last 30 days saw an 5.9% increase in the NFT-500 in March.
Louisa Choe, research analyst at Nansen, stated that NFTs have "proven to resonate with retail investors over the past year" especially in Q1 of 2022, and added that only time will tell which sectors become the market's driving force as more and more artists, creators and builders innovate.
The volatility of each of these sectors may differ, and the Nansen report revealed that Blue Chip NFTs, which are categorized by market capitalization, are the least volatile. OpenSea chart topping collections like Azuki, Clone X, and Doodles have been categorized as Blue Chip. This is likely because they have becomewell-known within the crypto community and can be considered good long-term investments due to their track record of growth and value.
Related: OpenSea monthly volumes top $5B as NFTs continue to mainstream
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