The statistics behind the market’s first bearish cycle are highlighted by Nansen’s NFT analysis
Blockchain analytics service Nansen has published its NFT Indexes Report for the second quarter of 2022, showing the market dynamics and quantitative performance of nonfungible tokens (NFTs) over the last three months.
The study identifies and analyzes key factors contributing to the long-established NFT bear market, including Ethereum-based volume and transaction data, as well as market capitalization, among other things.
NFT volume statistics on Ethereum measured per week during a monthly time frame were analyzed in the study, which revealed that June had the lowest figure of the year. On an economic level, at least, the NFT space experienced a significant depreciation throughout June, with trading weekly volumes closing in around 600,000 Ether (ETH). Compared to May’s approximately 1.3 million weekly ETH volume levels, approximately 900,000 of them happened on OpenSea alone.
Monthly NFT volume. Source: Nansen
Despite the short-term deflationary climate, long-term hope and assurances about the long-term demand of the sector flicker on looking at monthly users’ charts, as well as first-time purchasers.
The latter, on the other hand, has experienced significant changes since January: from 55,000 monthly users in February to 35,000 in May, before increasing again to around 48,000 in June.
The number of first-time buyers has remained rather consistent at 5,000 users since March this year, suggesting that the desire for NFTs as a speculative tool and medium of entertainment has maintained a modest appeal.
The monthly user count has been consistent, with no significant changes in the number of individuals using it. This long-term bullish view is supported by the fact that monthly users have remained at 650,000 levels despite a modest reduction from last month’s 700,000.
The report found that all “recorded a bounce in June (when measured in ETH), with the exception of Gaming NFTs at the end of Q2 2022,” except for Blue Chip-10, Social-100, and Metaverse-20, which were the top performing NFT ETH indexes in June. The last made the most substantial gains to climb over 1,000 on the index score system.
“NFTs’ trend reversal began somewhat earlier than the rest of the cryptocurrency market,” Nansen remarked after seeing a slight increase in index performance in June, “and it’s continuing to develop. The very low liquidity and elevated volatility points to another possibility: that this uptrend won’t last.
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