The research arm of Nansen, a popular blockchain data firm, has published a meticulous 12-page report quantifying the performance of Ethereum-based non-fungible tokens, or NFTs, since the turn of the year, providing some compelling evidence about the economic and cultural future of the ecosystem.
Citing the profound impact of traditional financial indices such as the Dow Jones Industrial Average, S&P 500, and the Nasdaq Composite, the report considers the huge potential for comparable models targeting NFTs, arguing that both education and adoption could become significant. improved by their wide-scale use.
Last month, Nansen released six NFT indices: Nansen NFT-500, Nansen Blue Chip-10, Nansen Social-100, Nansen Gaming-50, Nansen Art-20, Nansen Metaverse-20, all according to the associated blog afterare designed to “raise the bar for high-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 ETH and USD market cap. These collections correspond to 85.4% of the daily market volume since January 1, 2022.
When assessing the performance of the NFT-500 index over the period from January 1 to March 9, 2022, it appears that the price of assets rose 68.5% when expressed in ETH, and increased 20.9% when measured in USD.
By contrast, the performance of the ETH index over the past 30 days — as illustrated in the line chart below — contrasts sharply with -28.8% and -38.5% in ETH and USD, respectively.
Upon our request for specific clarification on the method of calculating the numerical figure on the y-axis, Nansen research analyst Louisa Choe stated that “the index level is the value of an investment relative to its value at a fixed point in time. The index started at 1,000 on 1/1/2022.”
Source: Nansen. NFT-500 Line Chart
CoinTelegraph spoke with Choe to get a better understanding of how Nansen anticipates the impending influx of quantitative data sources, such as NFT indices, that will positively impact the industry.
Choe stated that “we believe that reliable data (both at a broad market level, such as through the index, and micro level at wallet) can help market participants better navigate this space” before sharing their intended purpose for the service.
“A key motivation behind the index was to enable users to separate the hype from reality, or to improve their due diligence process.”
Related: Blockchain Analytics Firm Nansen Hits $12 Million in Andreessen Horowitz-led Raise
In addition to providing NFT analytical dashboards and trend metrics for both retail and institutional investors across multiple timeframes, Nansen is also well-regarded for their decentralized financial (DeFi) services. In November 2021, the platform integrated data from Solana, Arbitrum, Fantom and Avalanche, among others.
In June 2021, the company raised $75 million in a Series B round led by early-growing venture capital firm Accel, alongside further participation from the likes of Andreessen Horowitz (a16z) and Tiger Global, and as a follow-up to their $12 million Series A . just six months earlier.