Service for blockchain analysis Nansen has published its NFT Indexes Report for the second quarter of 2022, which illustrates the market dynamics and quantitative performance of nonfungible tokens (NFTs) during the previous three months.
The paper analyzes and quantifies the major drivers driving the well-documented NFT bear market, such as Ethereum-based volume and transaction data, as well as market cap.
Beginning with an examination of NFT volume figures on Ethereum across a monthly time period, the research discovered that June had the lowest number of the calendar year.
Calculated over six markets – OpenSea, LooksRare, Mints, X2Y2, 0x, and CryptoPunks – the NFT area saw a dramatic drop in value to approximately 600,000 Ether (ETH) in trade each week in June.
In contrast, the previous month of May had over 1.3 million weekly ETH volume, with approximately 900,000 of that volume being on OpenSea alone.
Despite the short-term deflationary situation, long-term optimism and room demand assurances may be seen in the charts of recurring monthly users and new purchasers.
The first has witnessed substantial fluctuations since the beginning of the year, falling from 55,000 recurring monthly users in February to 35,000 in May before rebounding to roughly 48,000 in June.
New purchasers, on the other hand, have stayed relatively stable at the 5,000 user base since March of this year, indicating that the desire for NFTs on Ethereum as a speculative mechanism and medium of amusement has remained low.
The top-performing NFT ETH indexes in June were Blue Chip-10, Social-100, and Metaverse-20, with the last making the most remarkable advance to reach 1,000 on the index scoring system.
The research noted that all indexes throughout the NFT sector “saw a rebound in June (measured in ETH), except Gaming NFTs towards the end of Q2 2022.”
Observing this slight improvement in index performance in June, Nansen stated, “The trend reversal of NFTs started earlier than the broad cryptocurrency market,” before noting that a “risk-off sentiment is still very evident in the NFT market and limited liquidity […] hints that this uptrend may not hold.”
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