Based on the popularity of the Blue Chip index, Nansen introduces a wider range of clues that give all users a fundamental overview of the sectors that quickly emerged from the NFT market.
- Nansen introduces six NFT indices which follow market activity on Ethereum blockchain.
- Nansen indexes define the NFT categories and subcategories according to the use of NFT.
- Using these indices, all Nansen users can now explore and diversify in different sectors of the NFT market.
NFTs are a fast emerging asset class. It is difficult to keep track of innovation on the market. There is no standard definition to categorize the use cases of NFT, but such a framework is vital to surface investment signals. Identifying this gap, Nansen designed six clues that follow the activity of the NFT market on Ethereum blockchain using the ERC-721 and ERC-1555 standards. The indexes are:
- Nansen nft-500,,
- Nansen Blue Chip-10,,
- Social Nansen-100,,
- Nansen Gaming-50,,
- Nansen Art-20,,
- Nansen Metaversse-20.
Each index is designed to follow the activity of a major category of NFT, depending on its user cases or applications. More than 500 NFT collections have been examined and analyzed for index design. To find out more about Nansen’s indexing methodology, you can read our methodology document here.
New investment signals
NFTE NFT indices allow investors to identify how a market segment moves against other segments and the wider market. The performance of the Nansen indices in the last 30 days suggest three general trends.
Social NFTs and metavers are less volatile.
Daily market course by Social NFT subcategory
Capage Double Daler Per Sub-Category of Metaversse NFT
One of the possible reasons for such a phenomenon is that social NFTs are experiencing greater competition on the NFT market. There is therefore a reduction in asymmetry of information on prices. An updated year, social NFTs represent a minimum average of 50% of the daily volume of the NFTS market. Market players have more information on how to assess the prices of social NFTs. The effects of the network are also particularly strong with these NFTs because of their community characteristics. Social NFTs exist longer compared to other NFT sectors. The adoption of social NFTs began in 2017 (see, for example, crypto punks); You can say that this sector is relatively more mature.
Likewise, although the integration of NFT into the metavers is a new introduction, the metavese concept itself is not new (for example, second Life began in 2003). We hypothesize that the familiarity of Metaversse as a concept, as well as other large companies approving this sector (for example, the change of Facebook brand to Meta and the gray level offer of decentral confidence (Mana)), are some possible factors for which the NFT Métiverse are less volatile. The social index-100 indicates that the social NFT leads the NFT market with a return of 30 days from 24% to February 21, 2022. At the same time, Metaversse-20 shows a yield of -3.9% in the last 30 days.
The game NFTs are underperforming in the last 30 days compared to other NFT categories.
The gaming-50 index indicates that the game NFT has been underperforming since the beginning of 2022. The Gaming-50 index reflects a return of 30 days of -9.1% to February 21, 2022. There is often a gap from which a game NFT is released on the delivery of the real game; Consequently, maintaining participants’ commitment is a challenge in this sector. Locate the performance of game NFTs in the wider market for gaming cryptocurrencies; Axie Infinity experienced a drop of -8.49%; Illuvium has dropped 8.0% and Enjin is 10.5% in the last 30 days. Compared, the Gaming-50 index complies with three of the largest gaming cryptocurrencies by market capitalization.
The art NFTs are relatively more volatile.
The Art-20 index reveals the volatile nature of NFTS art. Since works of art are often smaller with a slower transaction activity, investors can find it difficult to obtain information on NFT Art during investment. When you negotiate actions, bonds, basic products and currencies, you have access to a multitude of information that can help you in the right direction. Although there is still information on art collectibles, the quantity of details you can learn about an art collection is limited in relation to the negotiation of anything in public procurement. We hypothesize that information on asymmetrical prices become a speculative behavior engine among market players, thus resulting in the volatility of NFTS prices.
What are the six nft indices?
The NFT market moves quickly and there is no metric easily available to follow the large activity of the NFT market. After identifying this gap, Nansen designed the NFT-500 index as a reference index to follow the activity of the NFT market. The NFT-500 consists of the 500 main NFT collections, weighted by market capitalization. It represents on average 85.4% of the daily volume of the market since January 1, 2022.
Based on the success of the Nansen Blue Chip origin index, the Blue Chip-10 index now follows a collection of ten notable NFTs. These NFT collections have been widely recognized as well established, and the index weighs these collections by their market capitalization.
We observe that part of the motivation behind the property of a nft profile image is that users connect and interact with other people from a community. This social aspect of the NFT is not limited to profile image NFT. We have recognized similar social engines in other social NFT subcategories such as NFT “access and subscription” and “utility” NFT work as a decentralized autonomous organization (DAOS).
The social dashboard-100 index presents the different types of social NFT, with NFT profiles dominating the market capitalization of this sector.
The NFTS Gaming-50 index includes the top-50 gaming NFTS by market capitalization. It includes NFT game collections such as the NFT games to obtain, Game-Fi (game with decentralized financial elements) and role-playing NFTs.
In the traditional gameplay, the game developer has a complete control of the operation of this downloadable content – this goes from the way they authenticate your property, the server from the download and how the element can be implemented in the game. However, the game NFT introduce a different element where the value acquired in the gameplay can be made out of chain. For example, in Wizard & Dragons, you can use NFTS to acquire the currency of the game (that is to say gold coins).
According to the Gaming-50 index, the NFT trend game projects include Vox Series, Asmaifaalstarsboxset and Cyberkongz.
There are different forms of art nft. For example, Xcopy’s “Treatment” collection is a digital art form, or what some could recognize as a new media art, where the artist uses computers or electronic devices to create the room. On the other hand, we have generative art, a form derived from digital art. This art form generally implies the use of programming in its creation. Such an example is the Autoglyphs collection. Then there are physical works of art, like the works of Fewocious. Finally, music can also be classified as part of NFT Art.
The Art-20 index intends to present the diversity of rear NFT on the market. It summarizes the many types of art NFTS – digital art, generative art, physical art and music. The YTD performance of the Art-20 index highlights the domination of generative art in the NFT Art sector.
The NFTS Metaverse-20 follows the NFT linked to Metaversse such as the “avatars”, the “assets”, the “lands and real estate” and “utility”. It consists of the 20 best collections of NFT Metaverse weighted by market capitalization. The Metaversse, a network of immersive virtual worlds that mix various games, entertainment, trade and communities, allows users to engage with each other. Millions of people spend hours a day in virtual social spaces, and NFTS is a network that adapts perfectly. In addition, the NFT Métiverse allow participants to prove their property and authenticity of assets in virtual worlds, thus supplying a metavese economy.
The Metaversse-20 index reveals that the NFT linked to the land and real estate have acquired importance in this sector.
Nft investment using an index approach
As part of traditional finance, there is an existing literature demonstrating that the index investment can surpass the active management of funds over time. In addition, a market index provides investors with historical data that can help investors make good investment decisions. NFT NFT indexes have a reliable way to navigate NFT markets. This update increases the quality financial infrastructure mark that supports the growing depth of the NFT industry. The depth and extent of the categorization will allow all Nansen users to access a wide range of new market signals.
