Hi friends👋!

This week, I wanted to discuss something that’s been on my mind for a while now: the Blockchain NFT market. In order to better track the performance of the NFTs industry, I’ve created the CryptoNFTIndex (CNI9) using InCre. This index provides valuable insights into NFT tokens performance and trend, which can be used to make informed money allocation decisions.

NFT Market Overview

In 2021, the NFT market experienced an explosive surge in popularity and value, as the price of cryptocurrencies skyrocketed. However, this trend was not sustainable and by 2022, the market experienced a significant decline in trading volumes and overall market capitalization. This was largely due to the falling prices of cryptocurrencies, particularly Ethereum, which is the primary blockchain platform for NFTs.

Data provided by various sources indicates that from January to September 2022, NFT trading volumes had plummeted by 97%, from $17 billion to $466 million. Additionally, between March and June 2022, the total market capitalization of NFTs fell by 40%, while transaction volumes dropped by 66%. This indicates that the NFT market has taken a significant hit due to the macro environment.

However, by 2023, there are signs that the crypto market as a whole is beginning to recover, which has resulted in the stabilization and gradual increase of prices and market capitalization of NFTs. While the growth rate may not be as high as in 2021, the market is showing signs of resilience and potential for future growth. It will be interesting to see how the industry evolves and adapts to the changing macro environment in the years to come.

CryptoNFTIndex (CNI9) Tokens Introduction

The CryptoNFTIndex (CNI9) is composed of 9 NFT market tokens, including Apecoin(APE), Decentraland(MANA), ImmutableX(IMX), Axie Infinity(AXS), The Sandbox(SAND), Chiliz(CHZ), Enjin Coin(ENJ), Gala(GALA) and My Neighbor Alice(ALICE).

Each of these tokens represents a unique NFT marketplace or platform that allows users to buy, sell, and trade NFTs. Apecoin (APE) is the native token of the ApeSwap decentralized exchange and farming platform, while Decentraland (MANA) is the token used within the Decentraland virtual world.

ImmutableX (IMX) is the native token of the ImmutableX platform, a layer-2 scaling solution for Ethereum that is specifically designed for NFTs. Axie Infinity (AXS) is the token used within the Axie Infinity ecosystem, which is a blockchain-based game that allows players to collect, breed, and battle creatures called Axies.

The Sandbox (SAND) is the token used within The Sandbox virtual world, while Chiliz (CHZ) is the token used within the Chiliz blockchain-based fan engagement platform. Enjin Coin (ENJ) is the token used within the Enjin ecosystem, which provides tools for creating, managing, and trading NFTs.

Gala (GALA) is the token used within the Gala Games ecosystem, which is a blockchain-based gaming platform. Finally, My Neighbor Alice (ALICE) is the token used within the My Neighbor Alice virtual world. By tracking the performance of these tokens, the CryptoNFTIndex (CNI9) provides investors with exposure to the NFT market and allows them to track its performance.

Market Capitalization Method

The CryptoNFTIndex (CNI9) uses market capitalization to track the performance of the NFT market. Recent data shows that Apecoin (APE) and ImmutableX (IMX) have seen significant increases in their market capitalization, while the market capitalization of the other 7 tokens included in the index decreased compared to the base date.

As a result, the weight of APE and IMX has increased in the index, by around 17% and 12%, respectively. Conversely, SAND, MANA, AXS, and GALA have seen a decrease in their weighting ratios, with all four tokens experiencing a decline of about 6%.

The base date for CryptoNFTIndex (CNI9) is March 17, 2022, marking a full year since its inception. The index has only managed to remain above the benchmark value of 100 for a total of 40 days throughout the year, with its ATH of 151 occurring in early April.

However, the index suffered a major retracement on April 28, 2022, falling by -59.33% within 15 days. Since then, the index has been oscillating between 30 and 60 points, with fluctuations driven by market sentiment and project performance.

On May 26, 2022, the index reached a local high of 57.99 due to the strong performance of individual projects such as Axie Infinity (AXS) and The Sandbox (SAND). However, the index experienced a sharp decline by June 7, 2022, falling by -39.66% in just 12 days due to the underperformance of some projects, like My Neighbor Alice (ALICE) and ImmutableX (IMX).

Despite the fluctuations, the CryptoNFTIndex (CNI9) has maintained steady growth and investor interest, with its current value at 42.97 as of March 16, 2023. This represents a +0.99% change in the past 24 hours and a 54.96% increase since the beginning of 2023.

Reflecting on the past two years, the NFT market has made significant strides and advancements. In 2021, the market experienced explosive growth and entered the mainstream consciousness. Despite being impacted by market fluctuations in 2022, the overall trend was still positive, with continued accumulation and maturation of technologies and products.

As we look ahead to 2023, it’s hard to predict with certainty what the popular trends will be. However, there are some potential areas of development and growth for NFTs. For example, we may see more use cases for NFTs in the gaming industry, with in-game assets and experiences being tokenized. We may also see increased adoption of NFTs in the art world, as more traditional artists explore the possibilities of this new digital medium.

In 2023, the NFT market experienced slower growth in token prices and market capitalization compared to other areas of the crypto market. While tokens such as APE, SAND, and GALA saw some growth, the overall attention and investment in the crypto space was focused on other areas such as Ethereum’s Layer 2 projects, liquid staking projects, and AI/VR projects.

As a result, the NFT market saw a decline in interest and investment from old money, with little new money flowing in due to the macroeconomic environment. This can be seen in the data from NonFungible.com, which showed a significant drop in the total value of NFT transactions in the second half of 2022.

Despite this decline, the CryptoNFTIndex (CNI9) provides a comprehensive view of the NFT market and shows that the NFT track is not sinking. Instead, practical and technically promising projects continue to emerge during the bear market, providing new possibilities for the crypto world.

In addition, if you’re interested in tracking the price and market capitalization development of NFT-related tokens in 2023, I invite you to follow the CNI9 index that I created. It can provide you with timely updates on the performance of the NFT market and its constituent tokens!

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