NFT Index: A Digital Asset Index Tracking the Performance of the Non-Fungible Token Market

What is NFT Index (NFTI)?

Friends, imagine when we watch the news, we often hear terms like “Shanghai Composite Index” or “Dow Jones Index.” They act as the “barometers” of the stock market, helping us quickly understand the overall performance of the entire stock market. NFT Index (abbreviated as NFTI) is a similar concept, but it focuses on an emerging digital asset sector—the Non-Fungible Token (NFT) market.

Simply put, NFT Index (NFTI) is a digital asset index whose main goal is to track and reflect the overall performance of certain tokens in the NFT industry. Just as a stock index selects some representative stocks, NFTI also selects a basket of tokens related to the NFT ecosystem. By monitoring the prices and circulation of these tokens, it provides people with a tool to understand the overall trend of the NFT market.

This index is designed based on a weighted system, which determines the weight of each token in the index according to its circulating supply. In other words, the larger the circulating market cap of a token, the greater its influence on the NFTI index. NFTI aims to focus on NFT projects that are continuously maintained and developed within the decentralized finance (DeFi) sector.

Initially, the NFTI index included some project tokens you may have heard of, such as Polygon (Matic), Enjin, Decentraland, Sand, Axie Infinity, Aavegotchi, Rarible, and Meme. By tracking these tokens, NFTI hopes to help those interested in the NFT market get a general understanding of the market’s health and direction without having to research each project individually.

The NFTI token itself is a token running on the Ethereum platform. According to available information, its total supply and circulating supply are both 2,230.17 NFTI, which means all tokens are in circulation. The project was launched on March 6, 2021.

Non-Fungible Token (NFT): You can think of it as a unique digital asset certificate, just like a piece of art or a property deed in the real world—each one is unique and irreplaceable. It is recorded on the blockchain, proving your ownership of a particular digital item.

Decentralized Finance (DeFi): Refers to an ecosystem that provides financial services through blockchain technology without centralized intermediaries such as banks or traditional financial institutions.

Project Summary

Friends, from the above introduction, we can see that NFT Index (NFTI) is a digital index designed to track the performance of tokens related to the NFT market. It acts as a “thermometer” tailored for the NFT market, reflecting the overall state of the NFT industry by observing the dynamics of a selected basket of tokens. Its core value lies in providing investors and market observers with a convenient tool to get an overview of the NFT market’s overall trend without having to analyze every specific NFT project in depth.

However, it should be noted that detailed official information about the NFT Index (NFTI) project—especially comprehensive materials like a whitepaper that introduce the project’s vision, technical architecture, team, governance, and future roadmap—is relatively limited in public channels. The information currently available mainly focuses on its function as an index and basic token data. Some market reviews have also pointed out that the project may lack depth in content, transparency in tokenomics, and market demand.

Therefore, if you are interested in NFT Index (NFTI), be sure to conduct more in-depth independent research. In the cryptocurrency field, information transparency is very important, and any investment decision should be based on sufficient understanding and risk assessment. Please remember, the above content is for educational purposes only and does not constitute any investment advice.