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Market volatility down, how is NFT blue chip?

2022-03-17 13:08

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The overall trend

According to NFTGo, trading volumes on the NFT market have fluctuated and declined over the past 30 days. During the period of a small step back is more common in the news to the good news, such as Yuga Labs acquisition events.

NFT's market value is still tied to the volatility of the cryptocurrency market, and recent events such as Russia's invasion of Ukraine are destabilizing the world economy and various financial markets. NFT trading volume fell more than 33% in early February 2022 after hitting an all-time high.

那么当交易量下跌时，NFT 的价值是否也被低估？NFT 市值增长的驱动因素又是什么？

The number of traders has fallen significantly

According to NFTGo, although the number of NFT held addresses is slowly rising, the number of daily traded addresses is now down 70 percent, or about 10,000, from 51,740 30 days ago.

Higher rarity NFT performs well

High rarity NFTS are more likely to gain favor during market downturns, with Azuki, one of the youngest top-tier blue chip projects in recent times, selling for up to 95 ETH in the past week.

The average price fluctuates, but remains in the 10 to 15 ETH range. The highest weekly selling price for Azuki is about one-fifth of the highest monthly selling price. When we look at the difference in rarity between the two NFTS, we can see the reason behind the huge difference in selling prices.

Despite a significant drop in overall trading, the owner recently traded a legendary level rare Tier Azuki for 95 ETH.

Both the average price and floor price of Azuki NFT have dropped significantly since the highest selling price of 204ETH appeared. However, in some uncertain times, it is more advantageous to hold 1/1 collectibles.

Most whales are still hodlers

For many whale owners, the market value of their NFT holdings is still higher than the cost of holding them. For example, a holder of RTFKT CloneX could make between $660,000 and $12 million from the project if he sold his NFT. The following is the PnL metric, which is the sum of the profit made by the address (holder) and the NFT profit of all unsold items if the project is as it is today.

However, most whales still cling to their NFT. If we pay attention to the whale behavior and its profit indicators, we can see that the number of Mint drops in the market, while the buying and selling behavior continues to increase.

PFP remains the most liquid NFT category

In NFTGo's liquidity table by category, we can see that PFP projects are by far the most liquid NFT. PFP projects are about four times as mobile as game NFT, and more and more PFP projects are incorporating gameplay like GameFi, making them more attractive and potentially more valuable than other NFT, such as pure game NFT.

The metasverse craze is fading

The Sandbox and Decentraland saw a 45.51% and 41.83% decrease in transactions over The last 30 days respectively. In the meta-universe, participants trade LAND to build their own Spaces and buildings on the LAND they acquire. Decentraland has received more attention from Whales and other holders in The past week than The Sandbox LAND project.

The Dencetraland project is moving very quickly. The number of LAND deals at Dencetraland fell by about 30 per cent last week. However, these lands are still sold at the high price of 29.96 ETH. The large price difference indicates that there is a significant difference between different lands, similar to the price difference caused by rarity observed in Azuki before, except that the difference between lands comes from location, owner status of adjacent lands, etc.

上周最昂贵的地块以超过地板价 8 倍的价格售出。这块 LAND 为卖方带来了 78,594.881 美元的净利润，这笔巨额交易发生在该 LAND 被铸造出仅仅 5 天后。

conclusion

In a general market downturn, holders tend to pull money out of riskier assets. However, despite recent events that have affected the price and growth rates of blue chip NFT, the market has shown some stability and still has room to grow. Rare blue-chip NFTS, which sell for thousands of dollars, remain resilient in the downturn, and PFP projects continue to attract more traders. In the current primary market gradually calm period, should try to avoid impulsive Mint trading, can calmly analyze the market data, so as to find potential upside space.