The marketplace for non-fungible tokens (NFTs) has outperformed the broader crypto market this season both when measured in ethereum (ETH) and US dollar terms, based on the Ethereum-focused data analytics firm Nansen.
The entire year-to-date outperformance from the NFT market in accordance with the crypto market is 68.5% when denominated in ETH, and 20.9% when denominated in USD, their new report stated. This implies that the NFT space has organized much better than ETH, with crypto prices tumbling lower for that better area of the year.
Forever of 2022, the cost of ETH had fallen by 32% during the time of writing, while bitcoin (BTC) was lower by 19% within the same period.
Also, based on the firm, the entire year-to-date performance of their Nansen NFT-500 (ETH) index implies that the NFT market has what’s referred to as “a relatively weak correlation” using the crypto market when measured in US dollar terms.
Measured in ETH terms, however, the 2 financial markets are inversely correlated, the report added.
The Nansen NFT-500 index is one inch six NFT indexes produced by Nansen since September 2021 to trace performance over the NFT market.
“Index investing typically seeks to provide investors contact with an industry sector instead of picking winners,” Louisa Choe, Research Analyst at Nansen, told Cryptonews.com.
Drilling lower to a particular sectors from the NFT market, Nansen stated that it is Art-20 index implies that art NFTs may be the leading sector within the space, having a year-to-date return of 192% in ETH terms and 108% in USD terms.
In the other finish from the spectrum was the gaming segment from the NFT market.
Despite being explained Nansen because the “fastest-growing segment from the NFT market,” gaming-related NFT collections saw the worst performance this season having a return of 42% in ETH and merely 14% when measured in $ $ $ $, the report stated.
Further within the report, Nansen also stated the gaming-focused area of the NFT market is probably the least volatile segments from the market.
The reason behind this may be the gaming segment is “mature and also have a growing users list,” Nansen hypothesized. As evidence with this, it pointed towards the entrance of major companies for example Grayscale, that provides a Decentraland (MANA) investment trust, in to the space as you component that helps make the related NFTs less volatile being an investment.
Important to note would be that the gaming segment only makes up about a comparatively minor share from the overall NFT market, having a share of the market of near to 8%.
The greatest segment undoubtedly is what’s referred to as social NFTs, including profile pictures to be used in social networking. This segment comprises an astonishing 79% from the total NFT market, Nansen’s report stated.