January's Crypto Recap: NFTs Surpass Ether in Gains

• NFT Indexes Surpass ETH in Monetary Growth This Month
• Nansen's NFT-500 Index and Blue Chip 10 Experience Similar Growth
• Yat Siu Discusses The Evolving NFT Space
• NFT Prices in Ether Initially Lagged Behind
• NFT Average Price Decreases Despite The Rally
• Some NFT-Related Cryptocurrency Sectors Face Challenges

NFT Indexes Surpass ETH in Monetary Growth This Month

Non-Fungible Tokens (NFTs) have seen a price increase of nearly 10% this month, which significantly outperformed the cryptocurrency Ether (ETH), that expanded by just over 2%.

Nansen's NFT-500 Index and Blue Chip 10 Experience Similar Growth

The NFT-500 index by Nansen, which monitors the 500 highest valued NFTs, has grown by 9.35% since the start of the year. Similarly, the Blue Chip 10 has also seen a comparable rise. In contrast, data shows that Ether has grown by 2.2% according to Indicies data.

Yat Siu Discusses The Evolving NFT Space

During Taiwan Blockchain Week, Animoca Brands founder Yat Siu cited the evolving maturity and diversity in the NFT sector as a key element for the price recovery from their 2022-2023 crypto winter lows. Siu remarked, The majority of the speculators in the NFT and GameFi space have left, which strengthened the foundation as the remaining people are genuinely interested.

NFT Prices in Ether Initially Lagged Behind

It's noteworthy that NFT prices in Ether did not immediately match the cryptocurrency's end-year growth. This has changed however, as traders are now recognising the potential real-world applications.

NFT Average Price Decreases Despite The Rally

Despite this rally, the average price of an NFT has decreased by 13% to $107, according to data from CryptoSlam. Furthermore, the number of transactions has increased by 30%, while the sales volume has decreased by 36% to $1.1 billion for this month. CryptoSlam data suggests that wash trading, a fraudulent practice where a buyer and seller create artificial demand, accounts for 39% of the total volume.

Some NFT-Related Cryptocurrency Sectors Face Challenges

Edited by Jonathan Stoker