NFT Market Sentiment: A Deep Dive

It is reported that according to NFTGo data, the current NFT market sentiment index is 24, rated as “Cool”. The number of buyer addresses in the NFT market in the past 24 hours is 5087, and the number of seller addresses is 6021. The number of profitable addresses in the past 30 days is 77375, while the number of loss-making addresses is 415377. Note: NFT market sentiment index is calculated based on volatility, trading volume, social media and Google trend.

The number of profitable NFT market addresses in the past 30 days is 77375

NFTs, or non-fungible tokens, have taken the world by storm in recent years. These digital assets have redefined ownership and value in the online world. With the rising popularity of NFTs, the market sentiment surrounding them becomes increasingly crucial. In this article, we explore the current state of the NFT market sentiment using NFTGo data and analyze its implications.

Understanding The NFT Market Sentiment Index

Before we dive deep into the current state of the NFT market sentiment, it’s essential to understand what the NFT Market Sentiment Index signifies. The NFT market sentiment index measures the overall mood and behavior of buyers and sellers in the NFT market. The Index is calculated based on four key parameters: volatility, trading volume, social media, and Google trend.

The Current State of The NFT Market Sentiment Index

As per NFTGo data, the current NFT market sentiment index is rated as “Cool,” with a score of 24. This rating implies that the overall mood of the NFT market is tepid at present. The low sentiment score can be attributed to the recent market dip and the increasing regulatory scrutiny around NFTs.

Buyer and Seller Trends in The NFT Market

The number of buyer addresses in the NFT market in the past 24 hours is 5087, while the number of seller addresses is 6021. This trend indicates that there are more sellers than buyers in the NFT market. The seller-buyer ratio can be attributed to the ongoing market correction. Sellers are trying to liquidate their holdings at a reasonable price as the market dips, while buyers are looking for discounted NFTs.

Profitability Trends in The NFT Market

NFT assets can be highly profitable or can result in significant losses. As per NFTGo data, the number of profitable addresses in the past 30 days is 77375, while the number of loss-making addresses is 415377. The profitability ratio indicates that only a small percentage of NFT holders are currently making profits, while the majority of them are incurring losses. The primary reason for such a trend is the price correction in the NFT market, leading to value erosion of previously bought NFTs.

Implications Of The Current NFT Market Sentiment Index

The current “Cool” rating of the NFT market sentiment index and its underlying trends have several implications for NFT buyers and sellers. The high seller-buyer ratio suggests that there could be more room for NFT prices to fall in the future. As such, NFT buyers may hold onto their funds and wait for a further price dip before investing in NFTs. On the other hand, sellers may find it tough to liquidate their NFT holdings at a reasonable price.

FAQs

Q) What is the NFT market sentiment index?
Ans: The NFT market sentiment index measures the mood and behavior of buyers and sellers in the NFT market.
Q) How is the NFT market sentiment index calculated?
Ans: The NFT market sentiment index is calculated based on four key parameters: volatility, trading volume, social media, and Google trend.
Q) What does the current NFT market sentiment index rating imply?
Ans: The current NFT market sentiment index rating, which is “Cool”, suggests that the overall mood of the NFT market is tepid.

Conclusion

In conclusion, NFTs remain a promising investment avenue for investors looking for an alternate asset class. However, NFT buyers and sellers must closely monitor the NFT market sentiment index to gauge the market’s overall mood and behavior. The current “Cool” rating of the NFT market sentiment index indicates a market correction, and buyers and sellers must proceed with caution.