According to CoinGecko data, the total market value of the global NFT market assets in 2020 is only 317 million US dollars, and it soared to 12.725 billion US dollars in the first half of 2021. The NFT market size ushered in rapid growth in 2021.

After the explosive growth in 2021, the performance of NFT has weakened in the first quarter of this year. Both the transaction volume, the number of buyers and sellers, and the number of active wallets have all declined sharply. According to the recent report released by Non Fungible, the global NFT market in the first quarter of 2022 is weaker than that in the fourth quarter of 2021, in which the transaction volume decreased by 4.60% and the sales volume decreased by 46.96% from the previous quarter (the sales volume in the fourth quarter of 2021 was 14,040,708, In the first quarter of 2022, it was only 7,447,473), the number of buyers and sellers decreased by 30.91% and 15.61% month-on-month respectively, and the number of active wallets decreased by 25.34%.

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Source: Non Fungible, BeepCrypto

Although various indicators of the NFT market indicate that the market is sluggish, there are still some phenomenal NFT projects in the market, such as Moonbirds and Otherdeed that were released earlier. After a period of prosperity, the market often enters a "cooling-off period". During this period, the market structure will undergo some changes, and investors will tend to be calm and rational. However, after this "cooling-off period", the overall quality of NFT projects on the market It will increase, which is good for the long-term development of the industry.

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Source: NFTGO, BeepCrypto

Among the ten NFT projects with the highest trading volume we selected, PFP projects still account for the majority, which is consistent with the fact that PFP is the main type in the NFT market, and others include land and utility NFTs. Through the data, we found that the short-term floor prices of these top NFT projects have all declined to varying degrees. The 7-day month-on-month drop of Moonbirds was as high as 33.12%, the 30-day month-on-month drop of Sandbox was 35.68%, and the 3-month month-on-month drop reached 67.40%. It is worth noting that the floor prices of the two newly released popular projects Otherdeed and Moonbirds have fallen in the past 7 days.

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Proportion of transaction volume

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Blue chip holdings

In the previous report, we introduced the market performance, fundamentals, operations and team background of blue-chip NFTs, which are the four elements of blue-chip NFT projects. So, what are the characteristics of blue-chip NFT holders? We found that for blue-chip NFT projects, holders tend to hold other blue-chip NFT projects at the same time, so we counted the blue-chip holdings of these top NFT projects.

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Liquidity

Liquidity refers to the ratio of the sales quantity of NFT projects to the total quantity within a certain period of time, which is used to measure the relative liquidity of each project. As an asset, liquidity is the core element of NFT, which is also one of the challenges currently facing the encryption field. There are some NFT projects that lack liquidity. After investors buy NFT, it is difficult to sell them. The transaction cost is high, and it will also affect the future value of NFT.

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Price Distribution

For the same NFT project, the prices of different NFTs vary greatly. For example, BAYC, the transaction price data in the past three months shows that the lowest price is 0.03ETH, and the highest price reaches 663.33ETH; the lowest price of Otherdeed is 0, and the highest price is 625ETH. So among these top NFT projects, is there a certain pattern in the price distribution?

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Source: BeepCrypto, ThePASS

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Source: BeepCrypto, ThePASS

Through combing, we found some commonalities of top NFT projects: large trading volume, high proportion of blue chips, high liquidity, and concentrated price distribution. Although the performance of the NFT market has been weak recently and various indicators have fallen back, for investors, it is not as easy to make profits through NFT in 2022 as in 2021, but what we need to know is that the encryption market itself is volatile, and there are High-quality NFT projects can only be screened out in a volatile market.