5 Things That You Need to Know About the NFT Market Now

What does the rebalancing of Nansen's NFT Indexes tell us about the market?

TL;DR:

With the broad market (NFT-500) and Blue Chip-10 NFTs correcting, Gaming NFTs show early signs of a possible trend reversal.

Smart Money is still active despite the downturn.

In line with the broad market conditions, the NFT market is currently going through a correction.

However, did the NSN NFT-500 provide a clue on this downturn?

The NSN NFT-500 index applies strict criteria to NFT collections qualifying as constituents.

One such criterion is that NFT collections need to have “achieved a minimum of 1000 ETH of transacted volume in the last 90 days”.

However, in the recent rebalancing, only 486 NFT collections met the conditions.

This was perhaps an early sign that the market participants were cautious about small-cap NFTs, or that they were selling off their small-cap NFTs.

You can refer to the Nansen NFT-500?Index dashboard here and see the screenshot below:

It is important to note that not all NFT market segments responded the same in the recent downtrend.

In particular, Art and Gaming NFTs may be showing early signs of a possible trend reversal.

But it is still too early to confirm this reversal.

Zooming in on the NSN GAME-50 (ETH) index, P2E, and GameFi NFTs are the contributors to this possible trend reversal.

With collections such as CyberKongz seeing a 469% increase in its 30-Day floor price.

Additionally, we also see a slight increase in the volume of Gaming NFTs being traded in recent days.

In the current climate, Smart Money (see definition here) users are still making NFT purchases.

To put things into perspective, the Smart Money buying volume in the first week of May is still above the (first week of) March low volumes.

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