NFT Market and Performance Update

Are non-fungible tokens (NFT) viable and attractive as an investment class? In their December 2022 paper entitled “Non-Fungible Tokens (NFTs) as an Investment Class”, Mieszko Mazur and Efstathios Polyzos provide an overview of NFT investing. First, they summarize NFT primary and secondary markets, exchanges, aggregators, borrowing and lending,  and staking. Then, they analyze returns for leading NFT collections overall and separately during bull and bear markets. Using data as available from OpenSea excluding those in the bottom 1% of prices on nearly two million NFT transactions across leading NFT collections and ether/U.S. dollar exchange rates through June 2022, they find that:

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