Crypto currency

Blue chip NFT performance fails recovery, but investors HODL even harder

The market performance of blue chip nonfungible tokens (NFTs), often considered a good long-term investment, revisited its all-time low range for the second time since June 2022 — falling down below 10,000 Ether (ETH) in the blue-chip index maintained by NFTGo.

Blue chip NFTs marked their best performance not too long ago, on April 29, amounting to nearly 14,900 ETH. However, June 13 was the worst performing day in blue chip NFT history, when the index fell down to 9,331 ETH — primarily driven by a floor price adjustment in CyberKongz and CyberKongzBabies projects.

Performance indicator of blue chip NFTs. Source: NFTGo

In the last 30 days, over 53% of NFT investors made losses on sale trades. Despite the evidently cold market sentiment, the number of investors that hold their NFT investments continues to rise.

Blue chip NFT performance fails recovery, but investors HODL even harder
Investor behavior pattern show increase in long-term holders. Source: NFTGo

Nearly 500,000 users joined the growing pool of NFT investors in June and July alone who intend to hold for the long-term, taking the number of holders above 3 million at the time of writing. Out of all the NFT categories, PFP (picture for proof) NFTs boast the biggest market capitalization of $13.95 billion.

Former leaders such as collectibles, games and art NFTs together represent approximately $6.7 billion in market capitalization.

Related: OpenSea introduces new stolen item policy to combat NFT theft

Taking a proactive measure to counter illicit activities via NFT trades, NFT marketplace OpenSea announced plans to design policies around the sale of stolen NFTs on its platform.

OpenSea admitted that buyers unknowingly bought stolen items and were penalized for no fault of their own. As a result, the marketplace adjusted its policy to expand the use of police reports in identifying threats.