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2022 has witnessed significant shifts in the nonfungible token market landscape, with different sectors experiencing varied levels of volatility. At the center of this fluctuation is the Art $NFT sector, which has managed to carve out a position of strength, Nansen research reported on Twitter.
Since January 2022, art NFTs have been the best-performing ETH $NFT sector
They've done better than every other type of $NFT, including Blue Chips and Metaverse NFTs, remember them?
But they're down against the dollar…
Let's take a look at how down each $NFT sector is… pic.twitter.com/ZcZUI2EXDw
— Nansen 🧭 (@nansen_ai) August 29, 2023
The Game-50 index, which encapsulates a diverse range from GameFi to Play-to-Earn platforms, experienced a notably challenging year. Investors who commenced their journey in January with an optimistic $1,000 found their investments gutted to a meager $90 by year-end.
Similarly, the buzz and promise surrounding the metaverse sector were put to the test. The Metaverse-20 index, representative of this digital frontier, began the year with investments valued at $1,000, only to contract to a humbling $202 as the curtains closed on 2022.
The broader $NFT market wasn’t immune to the year’s turbulence, according to Nansen. The $NFT-500, touted as a barometer for the generalized $NFT landscape, recoiled significantly. Starting the year on a high note with investments valued at $1,000, the index ceded ground, ending at a diminished $329.
Yet, not all sectors were mired in challenging terrain. The Social-100 index, emblematic of NFTs rooted in community and interpersonal connections, painted a slightly brighter picture. Starting positions in January, pegged at $1,000, saw a decline, but concluded the year at a relatively healthier $362.
Similarly, the revered Blue Chip-10 index, often perceived as the gold standard within the $NFT universe, held strong. Despite facing the market’s unpredictable whims, investments here saw a descent from $1,000 in January to $405 by the year’s culmination.
2. Blue Chip-10: The cream of the crop. The very best and most recognizable NFTs takes the second spot
If you had invested $1,000 in Jan '22, you would now have $405…
They may be the leading NFTs, but even they're down in the current market… pic.twitter.com/1fMq9GFHc8
— Nansen 🧭 (@nansen_ai) August 29, 2023
However, the star of the year was undeniably the Art-20 index. Bucking the broader market trend, this index, representing the top 20 art collections by market cap, offered a glimmer of optimism. Investors in this segment would find solace, with January’s $1,000 valuation growing to an impressive $596:
“I guess people really do like the art.”
Ether, often regarded as a bellwether for the digital asset landscape, has had its challenges. A $1,000 allocation to Ether in January translated to $432 by the close of 2022, showing the performance of the Art $NFT sector as other $NFT sectors struggled.