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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.