NFT Royalty Introduction

When an NFT is created and sold in a marketplace, royalties from the respective NFT will provide the original owner a portion of the sale price. NFT royalties are paid perpetually and automatically using smart contracts. Most marketplaces allow users to select their royalty percentage. The normal NFT royalty is in the region of 5–10%.

Dashboard Introduction

In this dashboard, we will be comparing the royalty payouts over the last 6 months for NFT platforms like: OpenSea, LooksRare and x2y2. Next, we will analyse the daily sales transactions and active buyers for each platform, to identify the impact of royalties on NFT market activity.

Appraoch

1. Main Table Used: ethereum.core.ez_nft_sales
2. Start date: April 9th, 2022
3. The metrics below will only contain NFT sales data; event types such as bidding will be excluded.

Topics

1. Royalty Payouts Comparison
2. Correlation between Royalty Payouts and Sales Transactions
3. Correlation between Royalty Payouts and NFT Buyers
4. Conclusion

Royalty Payouts Comparison

• The metrics above depicts the details of royalty payouts for each platform.
• As can be seen, the daily royalty generated by Opensea is significantly larger than LooksRare and x2y2.
• Opensea accounts for more than 90% of the royalty market share.
• This is extremely reasonable due to the fact that Opensea is the largest NFT marketplace in terms of sales volume.

Correlation between Royalty Payouts and Sales Transactions

• The metrics above depicts the correlation between royalty payouts and sales transactions.
• We can see that number to sales transactions on Opensea have substantially outnumbered LooksRare and x2y2.
• However, the average royalties paid by each NFT sales transactions on LooksRare is the highest with nearly 200 USD.
• The average royalty on Opensea and x2y2 is less than 50 USD.
• This demonstrates that greater sales transactions do not necessarily translate into higher royalties for individual transactions.

Correlation between Royalty Payouts and NFT Buyers

Conclusion

1. Royalty Payouts Comparison:

   • Compared to LooksRare and x2y2, total royalty generated on Opensea over the past 6 months is substantially more.

   • More than 90% of the market share for royalties is dominated by Opensea.

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2. Correlation between Royalty Payouts vs Sales Transactions & NFT Buyers:
   • Despite the fact the Opensea had significant larger number of transactions and buyers, the average royalties paid on LooksRare is the highest.
   • Because royalties paid by each buyers and sales transactions is the highest on LooksRare, we may conclude that royalty fee on LooksRare is the highest among the 3 NFT marketplaces. Consequently, it is beneficial for NFT creators to sell their amazing arts on LooksRare.

• The metrics above depicts the correlation between royalty payouts and NFT buyers.
• According to the metrics above, we can see a similar trend which is the dominance in NFT buyers on Opensea.
• Market share of NFT buyers on Opensea accounts for more than 85% on most of the days.
• Nonetheless, the average royalty paid by each buyer on LooksRare is the highest with 430.8 USD.
• On the other hand, buyers on x2y2 paid the lowest royalties with only less than 50 USD on average.
• As a conclusion, we can infer that royalties on LooksRare is the highest when compared to Opensea and x2y2.
• On the contrary, royalties on x2y2 is the lowest.