Trades and Trends: July 9, 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 second straight week, the average return closed positive on Rally as investments finally rotated back into NFTs. The average return closed at 0.06% across 321 traded offerings and two different buyout offers were accepted during the week.
The best-performing asset was the 1973 Marvel Ghost Rider #1 which doubled its market cap after climbing 112.6%. The comic is now up 92.86% since IPO. but is still down -15% since IPO. In a reversal of recent trends, the next four best-performing assets this week on Rally were all NFTs. NFTs had been the worst-performing asset class on Rally for four straight weeks but flipped the script and closed this week with an average return of 11.5% to lead all sectors. The Trippy Fur Bored Ape #8827 gained 75% while Bored Ape #7359 climbed 41.8%. Even the Chromie Squiggle #5847, which is still down -68.2% since IPO, gained 40% over the past five days.
Sports cards continued to fall this week on Rally as the four worst-performing assets were all from the same asset class. The 1999 UD Retro Inkredible Michael Jordan Card dropped -29.82% to close on the bottom and the modern Jordan card is now down -60% since IPO. In a week where even the GOATs were clearly not safe, the 2000 Playoff Contenders Tom Brady Rookie Card fell -26.1% marking the worst single week for a Brady card ever on Rally.
While NFTs led all asset classes this week, comic books also bounced higher with a 6.8% average return. Cars climbed slightly, gaining 0.6% while video games added 0.1%. Card games fell -3.4% and sports cards dropped -1.8% on average. Luxury assets like wine/spirits and watches also fell this week with returns of -1.4% and -0.9% respectively.
When will the downtrend stop? This week marked 11 straight weeks of negative average returns on Collectable as assets on the platform fell another -1.76% across 201 traded offerings. In those 11 weeks, sports memorabilia has finished with a positive average return in five of them and this week game-worn and game-used closed in the green with a 1.3% average. Sports cards, which make up more than 60% of the assets trading on Collectable, dropped this week with a -2.8% return a the poor performance for cardboard continued a trend that has no lasted nearly three months. Overall, 27 assets closed with positive returns, down from 44 last week, while 59 offerings finished with negative returns, down from 82 last week. Liquidity was seemingly scarce this week as 115 offerings did not experience a week over week price change, the highest percentage to date.
Closing as the best-performing asset was the 1977-78 Sadaharu Oh Game Used Bat which gained 58.7% after falling -38.9% last week. Finishing in second was the2003 LeBron James Fleer E-X Essential Credentials Card which added 42.5% to its price while the 1981-82 Cal Ripken Jr. Game Worn Jersey jumped 40.1% after falling -30% last week.
The worst-performing asset was the 2006 Exquisite Triple Logoman featuring Tim Duncan, Yao Ming, and Dirk Nowitzki which dropped -63.1% and is now down -76% since IPO. The 1997 Brown's Boxing Floyd Mayweather Card fell -55.36% while the 2003 NetPro Elite /2000 Serena Williams slipped -46.6%.
Basketball was the only sport to close with a positive average return as the game gained 0.22%. Tennis tumbled -23.3% after gaining 12.5% last week and boxing bounced -11.1% lower.
Massive swings have become the norm on Otis and those continued this week as the Nike X Artist Collection gained 227.3% due to a single share. The sneaker collection was trading at $5.50 per share but a single bid and ask at $18/share was matched pushing the offering to the top spot this week while the overall average return fell -0.1%. In total, 27 assets returned positive performances while 29 closed in the red and the remaining offerings finished the week unchanged. The 27 to 29 spread of positive versus negative performing assets is the closest spread Otis has delivered this year.
Similar to Rally, NFTs bounced after weeks of poor performance. The digital art sector climbed 15.8% on average and the space was led by the XCOPY NFT which added 71%. Additionally, CryptoPunk #543 and the Chromie Squiggle #2241 added 35.7% and 32.1% to their market caps respectively. Sneakers, aided by the Nike X Artist Collection, gained 10.7% on average while art added 2.4% on the week.
Books, represented by the sole first edition copy of Harry Potter, fell -20% while sports memorabilia tumbled 10.5%. Card games slipped -8.8% and video games dropped -8.3% on average. The NBA free agent season is heating up and while it remains to be seen where Kevin Durant will play next year, investors dumped shares of his two jersey's that are trading on Otis. Durant's Warriors Jersey dropped -56.7% while his 2020 Nets Debut Jersey fell -34.5%. In total, four different video games closed among the ten worst-performing assets with two coming from the Mario franchise.
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