Non-Fungible Tokens: A Look Into the Sectors That Have Suffered a Downfall
Non-fungible tokens (NFTs) gained popularity in 2021 but have since experienced a significant decline. In this article, we will explore the sectors within the NFT market that have suffered the most. Nansen, a blockchain data platform, has categorized the NFT market into various sectors and evaluated their performance.
NFT Sectors and their Performance
- NFT Gaming: This sector, representing different gaming NFTs, has experienced a brutal comedown. It is the worst-performing sector, with a 91% decrease in index value since January 2022.
- The Metaverse: Another sector that has suffered a massive downfall is the Metaverse, which covers gaming items and virtual avatars. If you had invested $1,000 in January 2022, your NFT investment would now be worth just $202.
- Social NFTs: This sector focuses on social connection and privileges for holders. If you had invested $1,000 in this sector in January 2022, you would now have $362.
- Blue Chip NFTs: These NFTs are expected to maintain long-term value due to their trading activity and fundamentals. However, even they have seen a decline. If you had invested $1,000 in January 2022, you would now have $405.
- Art-themed NFTs: This sector comprises the top art collections by market capitalization. If you had invested $1,000 in January 2022, you would now have $596.
It’s important to note that the NFT market crash of 2022 was influenced by factors such as market saturation, fraud, and the collapse of crypto firms like Terra and FTX. These events created fear and uncertainty in the market, leading to the downfall of NFTs.
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