According to Nansen.ai the NFT market size is up 28% year to date in USD, and 48% in ETH, outperforming crypto which is down 15-20% in 2022.
A blockchain analytics platform for non-fungible tokens and DeFi coins, it uses a proprietary set of six ‘NFT indexes’ to calculate this.
What those indexes translate to in terms of the exact NFT market size in dollar and Ethereum terms is reserved for paying subscribers, alongside many other tools to monitor trending new NFT projects and DeFi tokens by metrics like change in daily sales volume.
What is the NFT Market Size?
Visa did estimate the total market valuation of NFTs towards the start of Q2 2022. One of the many companies to have entered the NFT industry by launching their NFT creator program, they released a blog estimating it to already be worth $ 100 billion.
That’s higher than some other institutional sources such as Jeffries investment banking group that see it increasing to $ 80 billion by 2025.
The discrepancy in valuation estimates demonstrates what Nansen explains on the methodology section of their website, Nansen.ai:
There is no standardised metric to track the broad activity of the NFT market and trends in the varying categories of NFTs. Nansen Identified this gap and developed several versatile indexes that track NFT market activities.
Their NFT indexes categorize the various sectors of the NFT markets and track each of them – including art works, social NFTs, metaverse NFTs and gaming NFTs.
The performance of ten notable blue-chip NFTs are also factored in, which we assume includes the Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, Azuki, Clone X, Doodles and others, although that list is recalibrated by Nansen every 90 days.
On-chain data is almost a whole academic field in itself that some crypto and a discipline that many NFT investors swear by to make their NFT price predictions.
Opinions vary as to how accurate it really is, however it is interesting to see the NFT market size still holding up in value and outperforming cryptocurrency in 2022.
Cryptoassets are a highly volatile unregulated investment product.