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, th S&P 500 and the Nasdaq Composite, the report contemplates the vast potential for comparable models focusing on NFTs, 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 and Nansen Metaverse-20, all of 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 Ether (ETH) and USD market capitalization. These collections equate to 85.4% of the daily market volume since Jan. 1, 2022.
Assessing the performance of the NFT-500 index across the period Jan. 1, 2022, to March 9, 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, a research analyst at Nansen, Louisa Choe stated that “the index level is the value of an investment relative to its value at one fixed point in time. The index started at 1,000 on 1/1/2022.”
Source: Nansen. NFT-500 Line Chart
Cointelegraph conversed with Choe to…