Buyers returned to the NFT market in June, despite the slump in the crypto market, according to the latest report from blockchain analyst Nansen. This shows that possession of digital art gives people an uplifting feeling that cryptocurrencies do not have.
According to Nansen’s Q2 (second quarter) report, NFT monthly returning buyers on the Ethereum blockchain fell to less than 35,000 in May and then 45,000 in June. Was jumping up. Nansen pointed out the increase in free distribution events called Air Drops in the background. AirDrops are known as a way for new collections to attract early users.
Nansen analyzes trends in NFT collections on Ethereum with six indicators, which are called “NFT500”, “Blue Chip 10”, “Social 100”, “Gaming-50”, “Art 20” and “Metaverse 20”. ing.
Of these, gaming fell the most in Q2, down 59.6% from the beginning of the year. As for NFT500, the number of collections that met the liquidity requirements was only 310 due to the remarkable decrease in membership.
“Behind the scenes, buyers’ attention was focused on a prominent NFT called a blue chip. Such a move shows participants’ risk-off stance,” said Nansen analyst Louisa. Choe states. The company pointed out that the uptrend in June may not continue.
Nansen pointed out in a previous report that cryptocurrency price movements are more correlated with each other than NFTs. Investors are cautious but wonder why they are buying NFTs.
“Their motivation is underpinned by social motivations such as online identity, inclusion and solidarity,” Choe said, noting that the area is less susceptible to market volatility.
Art-based NFTs are strong
The most recent rise was the Art 20 Index, which rose 33.1% in June and 35% in the past year. In particular, generative art (computer-generated art) such as “Chromie Squiggle” and “The Currency” topped the category.
The share of generative art in the market capitalization of art NFTs increased from 89.5% in Q1 to 92% in Q2. These arts, which contain accidental elements, often vary in color but are uniform in shape. According to the NFT Price Floor, the lowest price for Autoglyphys, the first generative art based on Ethereum, is currently 299.95 Ether.
“Past figures report that the art market is slower than the general market. Also, the rate of decline in the art market is lower than the stock market, and the rise in the art NFT is a buyer. Suggests that is choosing this category as a means of diversifying its portfolio, “Choe said.
Finally, it should be pointed out that this report is only for Ethereum-based NFT collections. Ethereum-based NFTs accounted for 82.2% of June trading volume, but there are also blockchain NFTs such as Solana and Polygon.