Try Quests to earn SOLNFT Sale on multiple chains
Overview of analysis:
Recently, NFTs are one of the most popular and discussed concepts in the cryptocurrency world.
Let’s track the sale activity of NFTs through various blockchains. The goal is to create a dashboard to let people compare NFT activities and sales volumes across chains.
This dashboard divided into the following parts:
- Comparison of NFT sale activity on multiple chains
- The General comparison
- The overtime analysis
- Purchaser distribution on various chains
- Detail analysis of NFT sale activity on selected blockchain
- General and overtime analysis
- Top NFT collections and Marketplaces
- Leaderboard and purchaser behavior
This tool called parameter based analyzer and reader can set three various parameters:
- Blockchain→ Default set to Solana
- Time period→ Default set to the past 6 months (180 days)
- Time Basis→ Default set to week
Methodology:
The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:
- Step 1: Find out the NFT sale on each chain
- Blockchains→ Ethereum, Optimism, Solana, Algorand, Near, Flow
- Used table→
- Near chain→
near.core.fact_actions_events_function_call where method_name = 'buy' - Other chains→
Blockchain.core.ez_nft_sales
- Near chain→
- Step 2: Determine the sale activity of NFTs on chains
- General metrics→ Count of sale and purchasers- Count of NFTs, marketplaces and collections- Average sale volume- Average sale count and volume of sale per day, collection and marketplace- Floor and highest sale price
- Over time metrics→ General metrics overtime, Cumulative analysis, 7 and 14-day moving average sale price in USD, Median and average sale price in USD
- Step 3: Top NFT collections of Marketplace analysis
- Try metrics of the previous steps
- Step 4: Purchaser behavior and Leaderboard
- Purchaser distribution by sale count and volume in USD
- Held NFT by owners
- Purchase distribution over days of week
- Step 5: By aggregating the outcomes of the steps and deep dive into the blockchains, draw a conclusion about the NFT sale across chain
What is NFT?
NFTs are non-exchangeable tokens. They are issued as a unique digital certificate of ownership for any type of digital asset. In fact, an NFT is a smart contract that is regulated and digitally secured using open source platforms (which anyone can download from sites like GitHub). Once written, it can be stored or permanently published as a token on a blockchain network like Ethereum. Because NFT allows the buyer to own the original commodity, which includes internal authentication; As a result, this authentication proves the ownership of this work and cannot be used by others. In fact, the spiritual value of the work is tied to the credibility and identity of the artist, and they agree to produce and donate only one unit of the desired work as NFT to the buyer.
NFTs can be a financial investment, an emotional purchase, a collector's item, or a way for the buyer to connect more closely with the creator of the NFT, such as an artist or a brand. This is similar to how people collect postage stamps, old coins, or butterfly collections.
Application of NFTs:
NFTs can be used to tokenize (digitize) almost anything. However, different types of "media" make the most use of these tokens. The most popular applications of NFTs include the following (active projects in each area are also indicated):
- Digital artworks (SuperRare, KnownOrigin, Async Art, Rarible, OpenSea)
- Digital music (Mintbase, InfiNFT, Airnft and Audius)
- Virtual Real Estate (Cryptovoxels, Decentraland and Sandbox)
- Wearable items of virtual reality or VR Gaming and computer games (Axie Infinity, Sorare and…)
- Tickets for various events or permission to attend them (get protocol)
- Event attendance/activity subscription badges (POAP and Galaxy)
- Blockchain domain names (Ethereum Name Service, Unstoppable Domains and TNS)
Findings:
The general comparison of NFT sale on various chains over the selected time period is as below:
- The NFT sale in volume dominated by the Ethereum chain as expected.
- The Solana network has the highest sale count for NFTs in the chosen time period.
- Ethereum and Solana have more NFT purchaser compared to other blockchains.
- The count of marketplaces and collections for Ethereum chain are more than other chains.
- The average volume of sale in USD per day, collection and marketplace demonstrated the superior of Ethereum chain by far and we know that Ethereum has more expensive collections than other chains.
Findings:
The over time investigation of NFT sale across chains have been summarized as below:
- The over time analysis validate the dominance of Ethereum chain on NFT sale from the volume of sale in USD perspective.
- The trend of sale volume for NFTs on chains reveals that the NFT sale has been decreased over time but it can be seen that the spike happened on the first week of November, 2022.
- The average sale price graphs shown that the NFTs on Ethereum blockchain are expensive compared to NFTs on other chains.
Conclusion:
NFT is becoming more and more used day by day and the scope of its use has gone beyond the world of digital currency. For example, the non-exchangeable token is an inseparable part of the metaverse concept that shapes the future of the digital world. By considering the consequences of previous parts the following conclusion has been drawn:
- The trend of using NFT in various networks has always been growing, but according to the recent situation of the digital currency market, the sales volume of NFT has been on a downward trend.
- The supremacy of the Ethereum network is undeniable from the point of view of sales volume as well as various NFT projects.
- Solana network is in the second place and according to the recent decisions regarding the Royalty fee, it has found a growing trend.
- The origin of NFT projects on the each network and marketplace have had a great impact on the volume and price of NFT sales, which can be seen in the results.
- Considering the importance of NFT projects and their popularity among users, all networks are trying to introduce unique projects and gain a larger share of the NFT sales market.
Useful links:
Author:
Credited by MZG
Discord handle: m.zamani#0361
Twitter handle: @GargariZamani
