What Is the LT30 NFT Index?
The LT30 NFT Index is a selection of notable NFT projects, designed to track and represent the overall performance of the NFT market.
Much like the S&P 500 in traditional equities markets, our LT30 is designed to provide NFT traders and collectors with one simple number (index value) that represents the state of the NFT market.
The index is composed of 30 of the top NFT projects, curated by the Lucky Trader staff based on market standing - like floor price and volume, as well as the Lucky Trader Power Rankings.
The NFT projects in the LT30 NFT Index exist across categories but include PFP projects, art projects, and more.
How Is the LT30 NFT Index Calculated?
The LT30 NFT Index value is derived using a weighted, proprietary calculation that accounts for several key metrics commonly utilized in NFT markets, like floor price and volume traded.
This number can be viewed similarly to the trading price of major indices in traditional equities markets.
At present time, the LT30 value can be reflected in ETH and USD. To change the denominated view, click the “ETH/USD” toggle at the top right of the page.
Why top 30?
With seemingly unlimited projects in the NFT space, the Lucky Trader Power Rankings and LT30 Index (coming soon) help distinguish the top projects in the space from all the rest. Think of the LT30 index as the NFT equivalent of the Dow Jones Index on the fiat stock market.
How Do I Use the LT30 NFT Index?
The LT30 NFT Index can be utilized to quickly evaluate the directionality and strength of the NFT market.
Using the LT30 index value chart, you can quickly toggle between different time frames to understand the recent market activity, as represented by the projects in the LT30.
Additionally, over time, you’ll be able to use the LT30 index value as a relative data point for understanding the growth or contraction of the NFT market.
For example, the S&P 500 was approximately 2,600 in Nov. 2017, but in Nov. 2022 that same representation of companies holds an index value of 3,770, signaling strong growth over the last five years.
Why Is the LT30 NFT Index Important?
The LT30 NFT Index is designed to provide a consistent, data-driven metric for the evaluation of the NFT market.
Without a data-driven NFT index, understanding the directionality and strength of the NFT market is very difficult.
Simply following individual projects or categories is not enough to capture the breadth of a quickly expanding market and relying on anecdotal evidence from influencers or market participants does not tell the true story.
Our goal is to create a simple way for NFT traders and market participants to follow the NFT market, compare their trading performance, and create market-level analysis.
How Often Will the LT30 NFT Index Be Rebalanced?
The LT30 NFT Index will be rebalanced on a quarterly basis.
At a minimum each NFT project’s inclusion will be evaluated but we reserve the right to modify the weighted calculations as well, given this is designed to be an experimental and dynamic index.