Forkast Labs unveils new NFT indices to monitor the digital asset economy

Forkast Labs has unveiled a new set of non-fungible token (NFT) indices seeking to monitor the health of the digital asset space in real-time. Forkast Labs is a data intelligence service created by merging crypto news publication Forkast News and market tracking site CryptoSlam.

Forkast Labs launches new series of NFT indices

According to the company, the main Forkast 500 NFT index will be “a proxy of the entire NFT market.” The index will track the real-time performance of 21 blockchains. The co-founder and chief operating officer at Forkast Labs noted that the index would be different from the traditional digital asset market rankings.

Chang noted that most traditional market rankings relied on data such as prices, sales, and transaction volumes. However, these metrics were insufficient to determine the NFT economy’s health. According to Chang, the Forkast 500 index would offer a holistic and comprehensive view of the entire market.

The executive also opined that Forkast Labs planned to release separate indices to track cryptocurrency prices. The new indices by Forkast Labs include one tracker of NFT performance on Ethereum, Forecast Eth NFT Composite, and the other for Solana, known as the Forkast Sol NFT Composite.

The primary Forkast 500 NFT index is weighted using the median market capitalization and the total unique traders. The index adopts a proprietary algorithm to eliminate the activity that would otherwise be deemed inorganic, such as wash trading, where prices are manipulated.

According to Forkast Labs, traditional metrics were largely fragmented, centered on price, and incomplete. However, Forkast Labs offered a more comprehensive way to understand the fundamentals driving the prices of digital assets.

The Forkast 500 index shows that the global NFT market is currently on a slight decline, contrasting to the 7.44% increase reported on the first day of 2023. The index shows that since the start of 2022, the global NFT market has slumped by 85.55%.

Demand for information in the digital asset sector

The new NFT indices by Forkast Labs show investors’ growing demand for information about digital assets. Digital asset platforms based in China have been looking to expand their operations to Hong Kong after the city started crafting a more robust and friendly regulatory framework.

In 2021, there was increased demand for risk assets such as cryptocurrencies and NFTs because of the pandemic. However, the market started declining during the second half of 2022 amid top projects and companies collapsing.

Forkast News and CryptoSlam are major players in the blockchain and NFT sectors. They have invested in companies such as Animoca Brands, a video gaming company behind some of the largest metaverse and virtual gaming platforms such as The Sandbox. Animoca is also a major player in the Web3 sector, having invested in over 400 companies offering blockchain-related products and services.