What is Opensea?

OpenSea is The world's first and largest digital marketplace for crypto collectibles and non-fungible tokens (NFTs).

What is X2Y2?

X2Y2 is an emerging NFT marketplace that launched in February 2022. X2Y2 rivals OpenSea (the largest NFT marketplace), featuring bulk-listing, rarity tracking, and real-time notifications. This platform is dubbed as “the decentralized NFT marketplace by the people, for the people,” and envisions itself to give back to the community.

What is Looksrare?

LooksRare is a community-first marketplace for NFTs and digital collectibles on Ethereum. Trade non-fungible tokens with crypto to get rewards.

What is Royalty Fee?

Royalty Fee (also known as Creator Fee) is an amount paid by a third party to an owner of a product (NFT) for the use of that product or patent. The terms of royalty payments are laid out in a licensing agreement. Creators can fix a royalty in the smart contract during the minting of the NFT. Usually, the royalties vary from 5 percent to 10 percent, and the amount is automatically sent to the artist's wallet once a subsequent sale is executed. in some cases, royalty fee can be zero (0%).

Methodology

In this dashboard, We are going to compare royalty payouts (creators fee) on 3 top NFT marketplaces on Ethereum: Opesea, X2Y2 and LooksRare.

The main table that we are going to use for this bounty is ethereum.core.ez_nft_sales. The royalty fee is extracted from creator_fee(USD) column on this table. Since there are several currencies to pay royalty fees with, we are going to analyze fees by USD currency (using creator_fee_usd column). In some cases, there are null values in this column, so, I am going to exclude them from the results for a clear and better analysis.

Daily, Weekly and Over-Time Charts

Based on the above charts, we can see the royalty fee on these platforms was paid between August 2021 and May 2022. After and before these dates, we can see a significant decreasing trend in paid royalty fees over time.

Moreover, we can see the total volume of royalty fees on Opensea on all days is more than other platforms, but in terms of the average paid royalty fee, we can see Looksrare has overtaken all platforms during recent months and is currently the top one in this case.

Also On the left chart, we can see the total cumulative volume of paid royalty fees on these 3 platforms over time. We can see the impact of those high spikes during August 2021 and May 2022 as a sharp increasing trend on this chart.

According to the above charts, the average paid royalty fee on Opensea is way more than 2 other platforms with more than 1.96M USD.

The average daily number of sales with no (or 0%) royalty feee on X2Y2 is more than other 2 platforms with more than 2516 transactions.

But, the average daily number of sales on Opensea (25.915k) is more than others and the average daily volume os sales on Looksrare ($97.50M) is the top one.

According to the above charts, the most volume of Royalty Fees was generated in the Opensea platform with more than 1.73 Billion USD. Looksrare is on the second rank and X2Y2 is on the 3rd. Also, Opensea has the most average percentage of royalty fees on its platform (almost 5%) while Looks rare (0.19%) and X2Y2 (0.16%) are in the 2nd and 3rd ranks.

The average volume of the royalty fee per sale on LooksRare ($163) is way more than OpenSea ($64.73) and X2Y2 ($4.3). But the median amount on Opensea ($11.59) is more than LooksRare ($6.99) and X2Y2. The median Royalty Fees paid on X2Y2 is zero!

The number of sales and also users who have traded NFTs with no (or 0%) royalty fee on Opensea is way more than 2 other platforms. While the volume of sales with 0% royalty fee on Looksrare is way more than other 2 platforms.

Totally, Opensea has the most number of users and sales and also the volume of sales among these 3 platforms. So, it’s obvious that Royalty fees have a close correlation with the number and volume of trades on NFT marketplaces.

On the left and above charts, we can see quite positive correlation between Royalty feese on these 3 platforms and the total number and volume of sales and traders on them. the most positive correlation of paid royalty fees is with number and volume of sales.

On the above charts, we can see over-time stats about sales with no (or 0%) royalty fees on these platforms over time.

As we see, X2Y2 and OpenSea are most active platforms in terms of number of sales and number of users, but the total volume of transactions with 0 (or 0%) royalty fees on Looksrare is way more than other.

Totally, we can see quite positive and increasing trend of transactions and traders with no (or 0%) royalty fees on these 3 platforms over time especially on X2Y2 platform. But sales volume trend is kinda decreasing over tiem especially after April 2022 and the drop on the peak of LooksRare sales.

Users Stats

According to the above charts, an average Opensea user has paid the most royalty fees among these paltforms. The average number of purchases per buyer on Opensea is also more than 2 other platforms. But, the average spent volume for buying NFTs by a user on Looksrare is way more than 2 other platforms.

Moreover, we can see an average user on X2Y2 has made the most number and also volume of purchases with no (or 0%) royalty fee.

According to the left chart, the most volume of royalty fees on these 3 platforms is paid by WETH (1st) and ETH (2nd) assets. on LooksRare, Royalty Fees are only paid in WETH while in the X2Y2 these fees are mostly paid in ETH. There are several currencies in OpenSea platforms that users have paid Royalty Fees with them (you can see some of the top currencies on the chart) but most volume is paid in WETH.

Based on the right chart,

On the left chart, we can see the user address 0x55faf0e5e6e532b1c5799bdeec1a0f193e54a92d on OpenSea platform has paid the most royalty fee (more than $2.36M) among all buyers on these 3 platforms.

The interesting thing is that 8 of these top 10 buyers with the most paid royalty fees are from OpenSea platforms and 2 are from LooksRare. There are no trace of X2Y2 buyers on this list.

As mentioned above, the user address 0x55faf0e5e6e532b1c5799bdeec1a0f193e54a92d is the top buyer with most paid royatly fee on OpenSea platform with total 69 sales and $31,463,644.04 sale volume.

The user address 0xa99a76dddbb9678bc33f39919bc76d279c680c89 is the top buyer on LooksRare with most paid royalty fee ($1,228,379.68) with only 3 purchase transactions and $24,567,593.72 total purchase volume.

and the user address 0x019ffbf2cbeec4b6fc8934498f3fc12072fed360 is the top purchaser on X2Y2 with most paid royalty fee (only $33,726) with only 4 purchases and total $1,065,528.37 purchase volume.

The user address 0xa53496b67eec749ac41b4666d63228a0fb0409cf from LooksRare platform has made the most number (1804) and volume ($2.34B) of purchases with no (or 0%) royalty fees. While the user address 0xd73e0def01246b650d8a367a4b209be59c8be8ab also from LooksRare platform is on the second rank in both terms with very little difference.

According to the left chart, most number of purchases on X2Y2 and LooksRare have only paid less than $5 total royatly fees for purchasing NFTs on these 2 platforms.

While on OpenSea, most number of users have paid more than $100 royatly fees.

X2Y2 has the most share of users with less than $5 paid royalty fee.

Projects and Tokens Stats

According to the above charts, the average volume of royalty fees per project on OpenSea platform is way more than other 2 platforms. Also the most number of sales per project on this platform is more than other 2.

While, the average volume of sales per projects on LooksRare is way more than 2 other.

But in terms of tokens, we can see tokens in LooksRare have the most average volume of royalty fees and also most average volume of sales. While an average token on X2Y2 platforms has more number of sales than other 2.

NFTs of ENS project on OpenSea platform have the most numebr of sales with no (or 0%) royalty fees while the Terraforms project on LooksRare has the most volume of sales with no (or 0%) royalty fees.

The Ethereum Name Service (ENS) is a distributed, open, and extensible naming system based on the Ethereum blockchain. ENS's job is to map human-readable names like 'alice. eth' to machine-readable identifiers such as Ethereum addresses, other cryptocurrency addresses, content hashes, and metadata.

Terraforms by Mathcastles is a collection of 11,000 on-chain land art NFTs from a dynamically generated, on-chain 3D world. Terraforms were created by @0x113d || Mathcastles and @xaltgeist who aim for lowkey & fair launches of extremely-onchain artworks.

On the left chart, we can see the token id #1 from the RTFKT collection on OpenSea has generated the most royalty fee for its creator(s).

digital fashion brand RTFKT Studios revealed Nike CryptoKicks, a new collection of customizable non-fungible token (NFT) sneakers. This was RTFKT's first big sneaker release since Nike acquired it in December 2021. A distinctive aspect of the collection is the shoe, the RTFKT Nike

According to the above charts, the token id 311 from the Loot collection on LooksRare platform has generated the most volume of royalty fees on a single transaction with the amazing amount of 1.22M USD!

This huge royalty fee was paid by 0xa99a76dddbb9678bc33f39919bc76d279c680c89 on LooksRare platform.

Loot, also known as Loot (for Adventurers), is a collection of text-based non-fungible tokens (NFTs) representing items that can be used in fantasy games created by token holders. Like CryptoPunks, minting original bags of Loot NFTs was free and there were no predefined uses for the NFTs.

On the above left chart, I have calculated the difference between total spent USD for minting NFTs and total sale volume of them. As we see, Bored Ape Yacht Club and The OtherSide are the top NFTs with most profit in this term.

CryptoPunks is a non-fungible token collection on the Ethereum blockchain. The project was launched in June 2017 by the Larva Labs studio, a two-person team consisting of Canadian software developers Matt Hall and John Watkinson

Otherside will be a platform for game developers similar to experiences like Roblox or Meta's upstart Horizon Worlds, and those users will be able to build and monetize experiences in the virtual world on virtual land that can be bought and sold.

On the right above chart, we can see total paid royalty fee and total spent amonut of minting tokens for the top 10 NFT collections with most royalty fee.

According to the above charts, we can see a positive correlation between Royalty Fees and mint and sale activity on these 3 paltforms over time. The most correlation is between number and volume of mints vs royalty fees.

The correlation of Royalty Fees vs number of sold and minted tokens and also average mint price is at its least among these metrics.

And based on the left chart, we can see most sales in X2Y2 (more than 81%) and LooksRare (more than 36%) are done without (or with 0%) royalty fees.

While the number of sales with Less Than 5% royalty fee on Opensea is more than other.

Totally, we can see there are more number of transactions on LooksRare with more than $100 royalty fees.

The share of variety of Royalty Fees on OpenSea is more close together compared to the other 2 platforms.

According to the above charts, Art Blocks collection on OpenSea have generated the most royalty fees for its creators with more than $93M. On the other hand, the NFT Collection IKB Cachet De Garantine has the highest average volume of royalty fees and this also belongs to the OpenSea platform.

Art Blocks is an Ethereum-based platform that offers programmable and unique generative art NFTs that collectors can invest in. Art Blocks NFTs are created through a custom generative minting technology, giving each piece a distinct and random look.

IKB Cachet de Garantie is a wrapper NFT which holds a single "Digital Zone" token (symbol: IKB). The IKB Cachet de Garantie is also a new artwork unto itself.

Correlation of Royalty Fees vs NFTs’ Sales and Mints Activity

And on the above charts, we can see positive correlation of paid royalty fees on these 3 platforms with ETH price over time. the correlation of average royalty fees with ETH price is at its most over time.

Conclusion

• According to the above analysis, We have realized OpenSea and LooksRare platforms are the top 2 NFT marketplaces on Ethereum with highest volume of sales and number of traders.
• The Total Paid Royalty Fees on OpenSea platforms is way more than 2 others but the average royalty fees paid by a user on LooksRare is more than other 2.
• Totally, paid royalty fees on LooksRare is way heavier than 2.
• Despite low share of market, X2Y2 has high sale activity with no (or 0%) royalty fees and an average X2Y2 users have made most number of transactions without royalty fees.
• Royatly Fees have positive correlation with NFT Sales and Mint activity on these platform3.
• Royalty Fees have positive correlation with ETH price over time.
• The number of users and also sales with no (or 0%) royalty fees on these 3 platforms is increasing significantly over time but the total volume of sales and also royalty fees is decreasing over time.
• So, we can conclude Royatly Fees have impressed sales and mints on NFT marketplaces on Ethereum over time. ppl’s will to perform transactions with no (or 0%) royalty fees is quite increasing over time.
• Also we may can conclude there is a positive correlation between new buyers and sellers vs royalty fees on these platforms. since when a buyer on a platform purchase an NFT, he/she does not have to pay additional fee to its creator. On the other hand, when a secondary seller sells an NFT, he/she will recieve a payout without any decrease because of royalty fees.

More Info

Royalty payments have become a cornerstone of the growing non-fungible token (NFT) industry, allowing artists to make money when people resell their work, venues to capture revenue on secondary marketplaces for NFT tickets and musicians to subvert streaming services in favor of more lucrative, blockchain-driven products. But there’s a problem: Royalty payments are only enforceable on a marketplace level, and not on-chain. An NFT buyer, for example, could send ether (ETH) to a designated wallet after making an off-chain agreement to buy their NFT, and the seller could send them that NFT with no marketplace as a middleman for the transaction, paying no royalty fees in the process.

Sellers on marketplaces such as OpenSea can program a designated fee into each sale, in most cases between 5%-10% of an item’s purchase price, but if a marketplace wanted to waive the fee altogether, there’s nothing stopping them from doing so. That’s exactly what’s happened with X2Y2. This platform announced that all royalty payments would be optional, making them the equivalent of a blockchain tip jar.

X2Y2’s announcement drew backlash from NFT Twitter, with many JPEG enthusiasts arguing that eliminating royalty payments would hurt the very artists and creators who first turned to NFTs as a more profitable medium of selling their work. The debate around NFT royalties has been especially tense in recent weeks. Prominent digital artists have been weighing their pros and cons in public forums like Twitter, with most agreeing that the consequence of eliminating them altogether could be detrimental to Web3, but also perhaps inevitable without being able to enforce them on-chain.

Since AMMs are designed to quickly facilitate sales, royalties can act similarly to transaction fees on Ethereum as they make people think twice about how often they trade. Artists should be properly compensated for their work irregardless of the cost to the consumer. It can be also extremely exploitative and against the culture and precedents established by early crypto artists, maybe they should maintain royalties for everyone or ensure that similar solutions are built into new services in the NFT space. X2Y2 even admitted that buyers always setting creator royalties to 0% would be a bad thing for the general industry.

Discord: Ali3N#8546

**Twitter: **

**Tweet Link For This Dashboard: **

On the above charts, we can see the daily number of new purchasers and sellers on these 3 platforms over time.

With a comparison, maybe we can conclude there is a positive correlation between new buyers and sellers vs royalty fees on these platforms.

Because when a buyer on a platform purchase an NFT, he/she does not have to pay additional fee to its creator. On the other hand, when a secondary seller sells an NFT, he/she will recieve a payout without any decrease because of royalty fees.