Summary
The NFT-500 index, which tracks the price of non-fungible tokens (NFTs), increased by nearly 10% in January, surpassing the gains of Ethereum. This rise is attributed to the new maturity and diversity of the NFT market. Despite the average NFT price falling by 13%, the number of transactions increased by 30%. However, sales decreased due to wash trades, a form of market manipulation. Some sectors related to NFTs, such as Axie Infinity and Decentraland, saw a decline in value.
Key Points
1. The Nansen’s NFT-500 index, which tracks the price of non-fungible tokens (NFTs), rose nearly 10% in January, outpacing Ethereum (ETH).
2. Yat Siu, co-founder and chairman of Animoca Brands, stated that the price of NFTs will continue to rise in the crypto winter of 2022-2023, pointing to the new maturity and diversity of the NFT space as a reason for the recovery.
3. Despite the rise in the NFT index, the average NFT price fell 13% to $107, and wash trades, a form of market manipulation, accounted for 39% of all trades. Additionally, the CoinDesk Culture & Entertainment Select Index (CNES), which includes NFT-related tokens, fell 22%.