Question:

Show the distribution of all NFT sales on Optimism by price. What percentage of all sales have been above .01 ETH? Above .1 ETH? 1 ETH?

Do you think that there is a limit to how high a floor for a NFT collection on Optimism can reach compared to on Ethereum?

Overview of analysis:

In this analysis, the purchasing behavior of buyers on NFTs of Optimism network has been investigated.

The main parts of this analysis are:

• Distribution of purchasers by Sale price in ETH
• Compare the behavior of purchasers on Optimism to Ethereum
• Other features of Optimism purchasers like:
  • Top NFT collections
  • NFT hold time
  • User retention

Optimism and NFTs

Blockchain has many advantages as one of the most practical technologies of today. But one of its problems is its scalability and low transaction speed. Layer 2 solutions seek to solve this problem. One of the proposed solutions for the mentioned obstacles is the launch and development of the second layer of blockchain. Blockchain layer 2 is a set of solutions created outside of the main blockchain network in order to increase the scalability and efficiency of a network.

Optimism is an Ethereum-based layer 2 scaling solution. Optimism's essential feature is that it makes Ethereum application transactions relatively cheap.

Quixotic is the largest NFT marketplace operating on Optimism. Soon after announcing the optimistic airdrop, Quixotic announced its official launch to the masses. Since it runs on Optimism, its transactions and operations are fast and cheap compared to other markets.

Part 1: NFT sale on Optimism grouped by sale price in ETH

Findings:

According to the defined buckets by sale price in ETH:

• Most of the sells of NFTs on Optimism happened in the bucket with sale price under 0.01ETH about 78.5% of total sales.
• About 44k unique purchasers bought NFTs with sale price under 0.01 ETH and with increasing the sale price, the count of purchasers reduced as well.
• The highest sale volume in ETH and USD belong to bucket with sale price between 0.1-1 ETH with 1.88 million USD.

Part 2: Comparison of purchasers behavior on Optimism and Ethereum

Findings:

This part is used to compare the purchasing behavior on Optimism and Ethereum:

• The average sale price of NFTs on Optimism is lower than Ethereum and the domination of Ethereum shown obviously.
• The Median price of sale on Optimism has been the Ethereum on September 14.
• Most of users on Optimism bought NFTs with under 0.01 ETH but on Ethereum the dominant group is 0.1-1 ETH.
• From the active purchasers point of view, about 35.7% of purchasers on Ethereum bought NFTs between 0.01-0.1 ETH.

Part 3: Other features of Optimism NFT buyers by grouped purchasers

Findings:

Additional features of NFT purchasers on Optimism has been investigated in this part:

• Purchasers who bought NFTs for under 0.01ETH buy more than 1 times and has the highest retention.
• Among top NFT projects on Optimism, the Optipunk has the highest sale between 0.01-0.1 ETH.
• Purchasers of NFTs for 1-10 ETH mostly sold their NFTs in the first 24 hour.
• The purchasers of NFTs for ETH price under 0.01 ETH hold 1 NFTs mostly but about 15% of them hold over 4 NFTs in their wallets.

Findings:

This part includes the over time analysis of NFT purchase on Optimism by weekly basis:

• The highest sale count and active wallets belong to sales below 0.01ETH and the September 19 to 26 is the week with highest sale count on Optimism.
• The final days of April and start of May are crucial dates for NFT purchase on Optimism and the cumulative charts shown it as well.
• From the volume in ETH point of view, there is competition between buckets 0.01-0.1 ETH and 0.1-1 ETH but after September 12, the winner has been appointed and its 0.1-1 ETH bucket.

Conclusion:

• The NFT ecosystem on Optimism has been followed the growing pattern and it can be seen from the outcomes.
• The floor price on Ethereum is high than Optimism and its because of popularity and historical background of NFT marketplaces on Ethereum like OpenSea.
• NFT purchasing behavior on Optimism has special trend on various NFT projects so it can be concluded that, the NFT projects on Optimism has largely affected the behavior of buyers and shape it in the near future.

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Useful links:

• Optimism network
• NFT sale on Optimism
• Quix

Methodology:

The Flipside date has been utilized to execute this analysis. The roadmap of this analysis has the following steps:

1. NFT purchase on Optimism→ from optimism.core.ez_nft_sales

2. Distribution by sale price in ETH→

   when price>0 and price<=0.01 then 'a. < 0.01 ETH' when price>0.01 and price<=0.1 then 'b. 0.01-0.1 ETH' when price>0.1 and price<=1 then 'c. 0.1-1 ETH' when price>1 and price<=10 then 'd. 1-10 ETH' when price>10 then 'e. > 10ETH'

3. Sale price comparison with Ethereum→ By Average, Median and 7-day moving average metrics

4. NFT hold time→ Average time difference between buy and sell by purchasers

5. Users retention→ How often purchasers interacted with NFT projects

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