The prices of so-called “blue chip” non-fungible tokens (NFTs), i.e. those NFTs that are regarded as market leaders, have fallen to record lows for the second time since June 2022. For example, the blue-chip price index of NFTGo, which reflects the development of these leading NFTs, has fallen below 10,000 ether (ETH).
The blue chips had their strongest performance not so long ago, when a record value of 14,900 ETH was posted for the index on April 29. On June 13, however, the worst day ever followed, when the index fell to just 9,331 ETH. This was mainly due to corrections of the NFT projects CyberKongz and CyberKongzBabies.
Blue Chip NFT Index. Source: NFTGo
The weak market situation is underlined by the fact that NFT investors have made more than 53% loss on their sales in the last 30 days. Despite this overall very negative sentiment, the number of investors holding their NFTs is steadily increasing.
More and more investors are holding their NFTs for the long term. Source: NFTGo
Almost 500,000 long-term NFT investors joined in June and July alone, bringing the number of long-term investors to over 3 million at press time. Among all NFT categories, PFP (Picture of Proof) NFTs account for the strongest market share with a market capitalization of USD 13.95 billion.
Crypto collectibles, NFT games and Kuznt-NFTs account for almost $6.7 billion of the market capitalization.
In order to be able to take better action against illegal NFT sales, the NFT marketplace has recently introduced changes to its processes.
2/ Our policy is designed to keep our community safe, but we know in some cases its side effects have damaged your trust in our platform. We have failed to proactively and transparently communicate the rationale behind our approach.
– OpenSea (@opensea) August 10, 2022
For example, OpenSea admits that many NFT investors would unknowingly resell stolen NFTs and be punished for it. In order to be able to prevent this in the future, police reports and criminal complaints should be included in the survey at an earlier point in time, so that unlawful NFTs are already filtered out during the search.