Nansen’s 7 thoughts on the NFT market outlook

1. About the life cycle of NFT

Looking at the historical NFT chart, everything has changed since August, and the NFT market has never been able to reach the sales volume and number of users in August-September last year. The NFT market has struggled all year to get back to where it was – even if it’s close, it hasn’t fully recovered.

2. The relationship between ETH price and NFT floor price

The data shows that for most of 2022, the price of ETH and the floor price of NFT are strongly correlated.

Nansen's 7 thoughts on the NFT market outlook

3. How does NFT floor price change?

NFTs are momentum assets, if the floor price rose yesterday, there is a greater chance of rising today. However, NFT floor prices will fall most of the time.

Nansen's 7 thoughts on the NFT market outlook

4. Performance of airdrops

Yuga’s success is hard to replicate.

Nansen's 7 thoughts on the NFT market outlook

Compare the performance of the last few airdrops: Beanz is 2x because every Azuki holder gets 2x in return.

5. When trading NFTs, focus on a specific trading strategy and conduct a deep review of each transaction

Some good traders have the following characteristics:

1) The amount of funds is sufficient, which can ensure the liquidity of investment, and can make crazy bets

2) Regardless of profit or loss, it is fast in and out

3) Find ways to make money most of the time in the market

6. Overall view of the NFT bear market: Bear markets make you poorer, but also make you smarter

1) Even though there are NFTs in the market very early, these NFTs have only been known and purchased by the public in recent years. Many NFT series will be difficult to return to the original price.

2) If you want to buy NFTs in the valley of value, find teams with capital, vision, and strong belief that they can survive this bear market.

3) NFTs are driven by FOMO, so it is difficult to make it burst again. Even if you have failed, you are still brave enough to pursue your dreams!

4) I firmly believe that NFTs can withstand the impact of the bear market and rebound and carry out ecological reconstruction. But after the rebuild it may be a completely new project.

5) Teams we like will also find it easier to do a whole new project all over again.

6) For most teams, even very good teams, it is difficult to avoid project failure. When the NFT price of the team is low, the sales volume is low, there is no work to do and a certain amount of cash to keep the project running, it will be in trouble.

7) I am optimistic about Yuga, Proof, World of Women, CloneX (Nike), Doodles and these teams, they have the capital and innovation to promote their long-term development.

8) Document your experience. Bear markets make you poorer, but also make you smarter.

7. In 2022, it is delusional to think that the lower the price of ETH, the lower the floor price of NFT

When ETH rises, BAYC floor price is 2 times more likely to rise than ETH.

When the price of ETH fell, the Punk floor price only rose by 21%.

Nansen's 7 thoughts on the NFT market outlook

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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