Correlation of Blue-chip NFTs and NFT Market Sentiment

In 2022, the NFT Market was extremely volatile throughout the year due to a series of incidents such as Luna, Celsius, and FTX causing the market to fluctuate and crash. This is because the NFT market is in its early stages and development, so it is naturally unstable and difficult to comprehend for most people.

While it is important to monitor the overall NFT Market’s trends and volume for better judgment and understanding. Keeping an eye on the Blue-chip NFT collections and Blue-chip index could add a layer of depth to your comprehension of the current and upcoming NFT Market size, movement, and trends.

In the NFT ecosystem, the so-called Blue-chip NFT collections are generative art collections that have proved their value by having a high and stable market price and have placed themselves as the most valuable subset of the NFT ecosystems. Currently, they make up about 35.72% of the current NFT Market value and about 51.45% of the daily trading volume. In addition, the Blue-Chip Index represents the overall trend and performance level of the Blue-chip collections in the NFT Market.

Market Statistics and Blue-chip Collection of 2022

Blue-chip NFT Collection Market Cap & Trading Volume (until 2023 Jan, NFTGo.io)

The market capitalization and trading volume of Ethereum-based NFT collections were about 10.15M (10.150,701.89) ETH and 8.62M (8,622,086.99) ETH in 2022. If we look at the graph and the top collections in the NFT Market, it shows that they hold about 30% of the NFT market cap and trading volume. By looking at the statistics, its apparent they hold over significant influence on the overall NFT market sentiments. So how would one individual Blue-chip NFT collection reflect the sentiment of the NFT Market?

BAYC Collection and Market Sentiment

Market Cap & Market Trading Volume of BAYC (top) and NFT Market (bottom) in 2022 (NFTGo.io)

If we observe the graph above, it compares the market cap and trading volume between the BAYC Collection and the NFT Market. The statistics comparison of the market cap and the trading volume shows similar trend cycle throughout the year of 2022. One particular point worth noting is that the BAYC collection has reached its peak on April 26th before the NFT Market’s peak on April 30th, and trend similarities can be observed at other dates as well. Since the NFT market is affected by positive and negative news, it is important to follow the condition of the top collections in the NFT Market as well to better understand the market sentiment.

NFT Market Cap and NFT Blue-chip Index

NFT Market Cap and NFT Blue-chip Index of 2022 (NFTGo.io)

This graph represents the NFT Market cap and the overall performance of Blue-chip NFT collections in year 2022. The Blue-chip Index constitutes for the performance of the Blue-chip collections, which can be used as a key indicator to determine the state of the NFT Market and the Blue-chip collections. Through this comparison, it shows that both the trend of Blue-chip index and NFT Market are aligned together throughout the year. So, by comparing the two indicators one can determine whether the NFT market is in a bear market, bull market or in a recovery period.

Conclusion

The According to data analysis, it is apparent that the Blue-chip NFT collections and Blue-chip index have a strong correlation to the overall sentiment of the NFT market. Since they hold the highest market cap and trading volume, they have placed themselves as the trend leader in the NFT ecosystem.

So, by closely examining the Blue-chip NFT collection, Blue-chip index, and along with NFT Market data, an individual or organization could grasp the overall condition of the Market before the crash or the rebound to gain prior information before the mass.

Since the NFT Market is still in its stage of growth and development, the market fluctuations are still expected in the year 2023. So, it is advisable to monitor the statistics of Blue-chip Collections and Blue-chip Index to better comprehend the NFT Market sentiment and its progressive trend.