What will drive non-fungible tokens (NFTs) in the future? Well, that’s a question that market enthusiasts seem to be asking recently. According to NFT data company nonfungible.com, NFT entered the breakout year in 2021 with sales of over US $ 17 billion.
By 2022, there has already been some turmoil, and in just four months there seems to be a paradigm shift in which the world is devoted to the Metaverse. Alongside NFTs, Metaverse was able to put its name in the ring through ventures such as virtual real estate and games.
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According to a recently released Nansen report, the world of NFTs could reach US $ 80 million by 2025. Currently, the NFT market is $ 10,275,018,910, with sales volume of $ 43,022,575, similar to CoinMarketCap.
Report at a glance
Nansen’s Quarterly NFT Report 2022 evaluates NFTs with six parameters based on market capitalization such as Ethereum, Nansen’s NFT-500, Nansen Blue Chip-10, and Nansen’s Metaverse-20. Cryptography is expected to generate 103.7% in ETH and 82.1% in US dollars.
In fact, the global market was upset under the aftermath of February’s inflationary pressures and Russia’s invasion of Ukraine, but the NFT-500 continued to record profits of over 5.9% in March 2022.
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It was also an effective power multiplier for individual investors in the first quarter of 2022. Volatility has different impacts on the sector, but Nansen’s report reveals that BlueChip NFTs have lower volatility compared to other NFTs.
With the remarkable growth of the NFT marketplace OpenSea in 2021 and the continued success of collections such as Doodles, OpenSea has jumped onto a ladder and established itself as one of the BlueChip NFTs.
Metaverse: The most unstable in the lot
The report suggests that the fast-growing Metaverse, along with Art NFTs, is currently one of the most volatile segments. Art NFTs are primarily opinion-based or perception-based, but Nansen suggests that decentraland and The Sandbox-led real estate prices can be difficult to assess.
Nansen’s Blue Chips have witnessed a 50% YTD gain for Ethereum and a 23% gain for US dollars. Even Nansen’s Metaverse witnessed a 33% YTD gain when denominated in Ethereum and a 9.24% gain when denominated in US dollars.
Even in the gaming ecosystem, Nansen’s report shows a decline in YTD performance. In fact, the gaming ecosystem suffered a 30% YTD loss in Ethereum and a 42% loss in US dollars.
Conclusion
Overall, Nansen’s report shows that the sector will now be dominated by Blue Chips and Metaverse NFTs, which drive the sector-wide growth path. 2022 could be a breakout year for the Metaverse, as it was last year, which was important for NFTs, especially with the growth of both sectors.
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