Nansen's indexes reveal insightful trends in the NFT space
The research branch of Nansen, a popular blockchain data firm, has published a meticulous twelve-page report quantifying the performance of Ethereum-based nonfungible tokens, or NFTs, since the turn of the year, unveiling a number of compelling indications as to the economic and cultural future of the ecosystem.
Citing the profound impact of traditional financial indexes such as the Dow Jones Industrial Average, S&P 500 and the Nasdaq Composite, the report contemplates the vast potential for comparable models focusing on NFT's, arguing that both education and adoption could be significantly enhanced through their wide-scale utilization.
Last month, Nansen released six NFT indexes: Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Art-20, Nansen Metaverse-20, all which according to the accompanying blog post, were designed to “raises the bar for quality financial infrastructure that supports the growing depth of the NFT industry.”
Nansen’s NFT-500 index aggregates the performance of the leading 500 NFT collections on Ethereum for both ERC-721 and ERC-1155, across ETH and USD market capitalization. These collections equate to 85.4% of the daily market volume since 1 January 2022.
Assessing the performance of the NFT-500 index across the period Jan 1st to March 9th 2022, it is revealed that the price of assets increased by 68.5% when denominated in ETH, and gained 20.9% when measured in USD.
In contrast, the performance of the ETH index of the last 30-days — as illustrated in the line graph below — stands in stark contrast, recording -28.8% and -38.5% in ETH and USD, respectively.
Upon our request for specific clarification as to the calculation method for the numerical figure seen on the y-axis,
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