Twitter user @punk9059, or NFTstatistics.eth, just posted another insightful analysis of the current NFT marketplace. The chart shows that only a handful of blue-chip NFTs are making gains now, while the rest of the market continues to decline. The gainers include BAYC, Azuki, CloneX, Doodles, and most recently, Moonbirds.
Blue Chip NFTs Only
The analysis depicts the 5 blue chip NFTs against 27 other projects on the leaderboards. Relative to the entire NFT industry, these 27 projects are still performing very well.
However, projects such as World of Women, mfers, and Invisible Friends have certainly seen better days. For instance, VeeFriends have seen highs of more than 31 ETH, but it sits at just 10 ETH now. Coolman’s Universe was once 2.75 ETH, but sits on a 0.59 ETH floor now. On the other end of the spectrum, there are projects such as Moonbirds hitting crazy milestones.
Twitter user @bengreen927 shared another chart that shows 20% of user addresses on OpenSea account for 80% of secondary NFT sales, while just 5% of all addresses account for 80% of profits made on secondary sales. In addition, the chart shows that 30% of user addresses account for 87% of NFT flips, and pretty much all of the realized gains. This is eerily similar to the Credit Suisse Global Wealth Report, showing that the world’s richest 1% own 45.8% of the world’s wealth.
According to the United Nations, income inequality has been increasing in most developed countries, and in some middle-income countries since the 1990s. After an absolute explosion of NFTs in 2021, are we beginning to see that gap starting to form? Based on the responses to the tweet, part of the community certainly thinks that the ‘little guys’ will always get the shorter end of the stick.
What About The Rest?
Aside from the 27 projects in the analysis, there are a ton of projects currently going downhill. For example, PhantaBear, whose peak was almost 8 ETH, is left with a floor price of 0.82 ETH. The 90% dump almost makes it look like a rug pull. Remember Gary Vee’s tweet indicating that 98% to 99% of 2021 NFTs will end up being bad investments? Is this what this analysis is pointing towards? Or are some communities just not built to weather the storm?
Nevertheless, the crypto market in general has taken a back seat for a while now as the general sentiment becomes more fearful. According to Forbes, the crypto market and tech stocks are highly correlated at this point. This means that the very reasons that are pressuring tech stocks can push crypto prices down too. This includes monetary policies, rising inflation, and weakening demand.
The Russia-Ukraine war, the Covid-19 pandemic, and various supply chain disruptions have definitely created a general risk-off sentiment across the board. We are seeing some of the market move funds towards more risk-averse blue-chip stocks. Could a similar scenario be present in the NFT market as well? If so, there is surely hope for the rest of the NFT projects in the long run.