How NFTs Forecasted A Crypto Recovery, Nansen Report Claims

Crypto research firm Nansen published a report shared with NewsBTC, on non-fungible tokens (NFTs) and their performance amid the persistent bearish trend across the industry. NFTs have been a hot sector since 2021 as they facilitated broader adoption of digital assets but have taken a toll as Bitcoin and other cryptocurrencies trend to the downside. Related Reading | Axie Infinity Sales Record A Massive Slump, Losing Over $120 Million According to Nansen, their NFT Blue Chip-10 and NFT 500 Indexes displayed strength last month. At that time, Bitcoin and larger cryptocurrencies were on the brink of recording yearly lows. BTC’s price crashed to a multi-year low of around $17,500. In the meantime, the Nansen Blue Chip-10 reported a 23.6% increase as early as June 2022 and possibly hinted at a decrease in selling pressure for the industry. In June, the crypto market saw a capitulation event as major crypto investment firms became forced sellers as they defaulted on standing debt obligations. NFTs operated as an indicator of future activity for the crypto market. As Nansen’s Indexes trended in the opposite direction throughout June, the positive performance extended and hinted at the formation of a local bottom for Bitcoin and Ethereum. The report claimed the following on the general sentiment across the crypto market and how NFTs have been outperforming even in periods of turmoil and persistent selling pressure: Blue Chip NFT...