What will drive non-fungible tokens (NFTs) in the future? Well, that’s the question that market enthusiasts seem to be asking these days. NFTs had a breakout year in 2021 with sales of over $ 17 billion, according to NFT data firm nonfungible.com.
By 2022, several disruptions have already occurred, and in just four months, a paradigm shift seems to be taking place with a world more prone to metavers. Along with NFTs, Metaverse has managed to put its name in the ring through its businesses such as virtual real estate, gaming and others.
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According to Nansen’s recently released report, the NFT world may well reach $ 80 million by 2025. Currently, the NFT market is $ 10,275,018,910 with a sales volume of $ 43,022,575. Americans like CoinMarketCap.
The report in brief
Nansen’s 2022 NFT Quarterly report assesses NFTs with six measurements based on market value, which are denominated in Ethereum, Nansen’s NFT-500, Nansen’s Blue Chip-10, Nansen’s Metaverse-20 and more. The report said NFTs will continue to rule. growth in crypto and is expected to yield a return of 103.7% when denominated in ETH and around 82.1% when denominated in US dollars.
In fact, even as global markets tumbled by inflationary pressures and the aftermath of Russia’s invasion of Ukraine in February, the NFT-500 continued to win above 5.9% in March 2022.
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In addition, it was also an effective power multiplier for retail investors in the first quarter of 2022. Although volatility affects sectors differently, Nansen’s report found that Blue Chip NFTs are less volatile than others.
The spectacular growth of the OpenSea NFT market in 2021 and its continued success with collections such as Doodles and others has blown it to the top of the ladder to establish itself as one of the Blue Chip NFTs.
Metaverse: the most volatile of the party
The report suggests that the fast-growing Metaverse is one of the most volatile segments right now, along with artistic NFTs. While artistic NFTs are largely based on meaning or perception, Nansen suggests that it can be difficult to assess property prices led by Decentraland and The Sandbox.
Nansen’s Blue Chips have seen a 50% increase year-to-date when denominated in Ethereum and a 23% increase when denominated in US dollars. Even Nansen’s metaverse has seen a 33% year-to-date increase when denominated in Ethereum, and a 9.24% increase when denominated in US dollars.
Even within the gaming ecosystem, Nansen’s report indicates a decline in performance since the beginning of the year. In fact, the gaming ecosystem has experienced a 30% year-to-date loss when denominated in Ethereum and a 42% loss when denominated in US dollars.
Overall, Nansen’s report shows that the industry will in future be dominated by Blue Chip and Metaverse NFTs, which will lead the growth path for the entire industry. Especially with the growth in both industries, it would be safe to say that just like last year, which was crucial for NFTs, 2022 could very well be the breakout year for Metaverse.
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