The NFT indexes designed by crypto analytics platforms Nansen and CryptoSlam have fallen to their record lows as the NFT market is struggling to recover.
Nansen developed six NFT indexes in January 2022, following record NFT activity in the prior year.
Since then, the NFT market has shown no clear signs of returning to its glory days of 2021.
The flagship NFT-500 index, comprising 500 selected Ethereum-based collections to track broad market activity, dropped further to 213 points on May 26, its lowest level since launch.
The current level suggests that $1,000 invested in the NFT-500 index at the beginning of 2022 would be worth $213 today, down almost 80%.
The index constituents are weighted by market capitalization and represent an average of 85% of the daily market volume since January 2022. The NFT-500 index is calculated daily and rebalanced every 30 days.
The other indexes representing different NFT categories are either close to or at their lowest levels.
For example, the Blue-Chip 10 index, which includes the top 10 Ethereum-based collections by market cap and reputation, has dropped to a record low at 256.
Metaverse NFTs are the biggest losers, with their index falling to a record low of 80 in mid-April 2024, a 92% decline. The index has recovered to 91 points as of this writing.
The Social-100, comprising the top 100 social NFT collections, is at its lowest level of 240, while Art-20 and Game-50 indexes are close to their record lows.
Meanwhile, the Composite NFT-500 Index by CryptoSlam, which tracks 500 collections across 11 non-Bitcoin chains, touched its lowest level on May 19 when it fell to 1,464. This represents a 95% decline from the index launch.
The NFT market has been in free fall since the 2021 hype. The recent recovery attempts since H2 2023 have been mainly driven by Bitcoin NFTs built on the Ordinals protocol.
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