Trades and Trends: July 16, 2022
Join Altan Insights as we highlight trading activity across the various alternative marketplaces with a combination of charts and penned analysis to help investors track trends and price movements that impact their portfolio.
For the third straight week, the average return closed positive on Rally as the rotation back into NFTs continued. The average return closed unchanged across 321 traded offerings. Overall, 110 assets finished with positive returns this week which outnumbered the 82 assets that closed in the red.
The best-performing asset was the 2000 SP Authentic Tom Brady Rookie Card which climbed 55% although the Brady rookie is still down -22.5% since IPO. In second was the Fedora CryptoPunk #5883 which recovered 46% despite still closing the week with a total return since IPO of -75.7%. Rounding-out the top three was the 2003 Topps Chrome Black Refractor LeBron James Rookie Card which jumped 45% but, in a similar theme, is still trading -48.5% lower that its initial offering price.
Closing in last this week was the 1940 Action Comics #23 which tumbled -48%. The comic, known for the first appearance of Lex Luther, is now down -62.9% since IPO and trading at a $10,400 market cap despite the sale of comparable examples that have reached above $20,000. Sports cards recovered this week overall with a 4.39% average return but the 1999 UD Retro Inkredible Michael Jordan Card was not part of that recovery. The modern-MJ card dropped -29.82% last week and tumbled another -37.5% this week. The Upper Deck Jordan is now trading -75% below its IPO market cap. Third from the bottom this week was the domain Hotspot.com which sank -37.5% and had dropped -50% since its initial offering.
For the second straight week, NFTs led all asset classes as the digital art sector led with a 10.5% average return after gaining 11.5% last week. Sports cards closed in second while wine and spirits finished third with a 2.4% average. Books bounced 2.2% higher and cars climbed 1.9% this week. Card games closed as the worst-performing sector for the second straight week as the asset class slipped 1.8%. Comic books fell -1.5% and video games dropped -0.7% on average.
Last week we asked the question, "when will the downtrend stop?" This week failed to provide an answer as the average return on Collectable closed at -2.7% across 201 traded assets. The performance marks 12 straight weeks of negative average returns on Collectable as assets on the platform have struggled to correct in price despite some signs of strengthening within the high-end card and memorabilia markets. In the past 12 weeks, sports memorabilia had finished with a positive average return in six of them but this week that was not the case at all as game-worn and game-used fell -6.6% for the sectors worst average return this year. Sports cards, which make up more than 60% of the assets trading on Collectable, dropped this week as well with a -1.3% return after the sector slipped -2.8% last week. Overall, 42 assets closed with positive returns, up from 27 last week week, while 111 offerings finished with negative returns, nearly double the 59 assets that closed in the red last week.
Finishing as as the best-performing asset this week was the Duncan/Tao/Dirk Triple Logoman which more than doubled its price with a 149% return. The big man logoman is still down -40% since IPO and closed last week as the worst-performing asset with a -63% average. Finishing in second was the 1997 Brown's Boxing Floyd Mayweather Card which added 104% to its price after dropping -55.4% last week while the 1948 Leaf Warren Spahn Card climbed 75.5% after losing -40% over the previous five days.
The worst-performing assets were the 2001 Trevos Lawrence Leaf Pro Set which dropped -74.2% and the 2002 Game Worn Kobe Bryant Sneakers which fell -58.8%. Boxing and hockey were the only sports to close with positive average returns as boxing bounced 13.3% higher and hockey added 4.1%. Wrestling slipped -14.1% and golf fell -10.9%.
This week marked a massive change on Otis as only the assets scheduled to migrate to Public traded. The 29 offerings, which currently includes all sneakers although the footwear will ultimately be merged into a single fund, gained 0.3% this week and closed with an unchanged median ROI.
Leading this week was the Nike x Jay-Z collaboration Air Force 1's which gained 62% while the NFT by XCOPY moved 15.6% higher. CryptoPunk #2142 added 9.3% to its market cap while the first edition copy of Harry Potter & the Philosopher's Stone gained 7.8%. Overall, seven assets returned positive performance while eight offerings closed in the red and the remaining finished with an unchanged week over week return.
Closing in last this week was CryptoPunk #543 which fell -26.3%. The WATA 9.4 graded copy of NES Super Mario Bros. bounced 21.1% lower and the first edition 1999 Shadowless Holo Charizard fell -15.6%.
Disclaimer: You understand that by reading Altan Insights, you are not receiving financial advice. No content published here constitutes a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. You further understand that the author(s) are not advising you personally concerning the nature, potential, value or suitability of any particular security, transaction, or investment strategy. You alone are solely responsible for determining whether an investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal financial situation. Please speak with a financial advisor to understand if the risks inherent in trading are appropriate for you. Trade at your own risk.