What is the current state of the NFT market?
Updated: Jan 3
Crypto l NFTs | OpenSea | Volume
The following article deals with the question of how the overall NFT market is currently performing. Let's therefore take a look at the data with a focus on volumes, transactions, prices and public interest.
Volume and transactions
Since the beginning of the year, monthly volumes have declined significantly. In particular, the Opensea marketplace has seen a sharp drop in monthly volume.
Images Credit: Bloomberg (https://www.bloomberg.com/news/articles/2022-10-25/apple-issues-new-app-store-rules-for-crypto-and-nft-payments)
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
A further breakdown by category or chain shows a similar picture. Declining volume in both categories Gaming and Art NFTs.
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
The breakdown by chain reveals the dominance of Ethereum, but at the same time also its sharp decline in volume.
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
A decline in the number of monthly transactions is also evident although it is not as drastic as in volume.
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
Prices
In order to be able to make a statement on how the overall market for NFTs has developed (in terms of prices), NFT benchmark indices provide some useful information.
Nansen NFT-500: The benchmark index consists of 500 NFT collections and represents an average of 85.4% of the daily market volume since 1 January 2022. This index aims to track the activity and movement of the NFT market.
Images Credit: Nansen (https://www.nansen.ai/)
Nansen Blue Chip-10: The Blue Chip NFTs index is a collection of notable and classic NFTs. It is also the first index constructed by Nansen. While the old index consisted of 20 constituents, the revised Blue Chip-10 index consists of ten well-established NFT collections weighted by market capitalization.
Images Credit: Nansen (https://www.nansen.ai/)
Nansen Gaming-50: The Gaming NFTs index consists of 50 NFT collections, which are further classified into the sub-categories: Play-to-Earn (P2E) games, Role-playing games (RPG), DeFi-related games (GameFi).
Images Credit: Nansen (https://www.nansen.ai/)
Again, a clear downward trend can be observed. But what about the the public interest?
Public Interest
The google search trends are used as a measure of public interest.
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
Images Credit: THE BLOCK (https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview)
The current data show a clear trend for the overall NFT market: sharply declining volume, fewer transactions, falling prices and less interest as measured by google search trends.
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Source
https://www.theblock.co/data/nft-non-fungible-tokens/nft-overview
https://pro.nansen.ai/nft-indexes/nft-500?platform=All
https://www.nansen.ai/research/nft-index-methodology