Blockchain analytics service Nansen has published the NFT Indicators Report for the second quarter of 2022, which shows the market dynamics and quantitative performance of non-fungible tokens (NFTs) over the past three months.
The report identifies and identifies the key factors contributing to the well-documented bearish NFT market, including metrics of volume, Ethereum-based transactions, as well as market value, among others.
Starting with an analysis of NFT volume statistics on Ethereum measured weekly over a monthly time frame, the report found that June had the lowest number in a calendar year.
Calculated across six markets – OpenSea, LooksRare, Mints, X2Y2, 0x and CryptoPunks – the NFT space, at least on an economic level, has seen a significant decline in value throughout June to nearly 600,000 Ether (ETH ) in circulation weekly.
In a stark comparison, the previous month of May recorded about 1.3 million in weekly ETH volume, about 900,000 of which happened on OpenSea alone.
Monthly NFT volume. Source: Nansen
Despite this short-term deflationary environment, beacons of optimism and long-term confirmations regarding long-term demand for space flicker when looking at the charts of monthly returning users and first-time buyers.
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The former has faced significant fluctuations since the turn of the year, from 55,000 returning monthly users in February to 35,000 in May, before rising again to around 48,000 in June.
First-time buyers, on the other hand, have remained relatively consistent at the 5,000 user mark since March of this year, suggesting that NFTs’ appetite for Ethereum as a speculative mechanism and a means of entertainment has maintained modest appeal.
Monthly NFT returns for first time buyers. Source: Nansen
This long-term bullish hypothesis is supported by the number of monthly users, which remains at the 650,000 level, albeit slightly lower than last month’s 700,000.
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Assessing indexes across the NFT space range, the report stated that all “rebounded in June (when measured in ETH), with the exception of Gaming NFTs at the end of Q2 2022.”
Blue Chip-10, Social-100 and Metaverse-20 were the top performing NFT ETH indices over the course of June, with the latter making notable strides to reach above 1,000 in the index scoring system.
Watching this slight uptick in the index’s performance during June, Nansen stated that “the trend reversal for NFTs started before the broad cryptocurrency market” before noting that “risk-off sentiment remains very evident in the NFT market and limited liquidity […] That this uptrend may not continue.”