NFT Royalty Comparison

    Which platform is the king of NFT royalties?

    ๐Ÿ“œ Introduction

    In this dashboard, we are going to compare 3 different NFT market place on Ethereum blockchain, for this study we are going to mainly focus on creator fees or royalties.

    • First of all, we should select the marketplace platforms that we want to study, this will be done in the Approach section.
    • In the next step, we will take a look at the platforms that we have selected.
    • Next, we are going to take a look at the general metrics and weekly changes of these metrics.
    • Finally, we are going to look at some interesting graphs and discover impact of royalties on NFT market activity.

    ๐Ÿ“™ Overview

    In this section we can see an overview on the platform and royalty details,

    It can be seen that:

    • Looksrare has the most traded volume.
    • Opensea creators have earned 1B USD, 20 times more than Looksrare creators, and 200 more than x2y2 creators.
    • Opensea gives 70% of the fees to the creators, while other platforms give way less.
    • Opensea also has the highest percentage of royalty paid per each sales, around 5.5% of each sales volume goes to the creator.

    For a creator, Its more beneficial to work with Opensea.

    ๐Ÿ–ผ๏ธ What is NFT?

    A non-fungible token (NFT) is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership.

    The ownership of an NFT is recorded in the blockchain, and can be transferred by the owner, allowing NFTs to be sold and traded

    ๐Ÿ›’ What is NFT Marketplace?

    An NFT marketplace allows the users to display, store, and trade their NFTs. Some even allow you to mint the NFTs on the same platforms.

    Users are allowed to mint and set royalty on their NFT collections.

    ๐Ÿค” Approach

    Data Source and Tables

    To conduct our study, we are using blockchain data provided by Flipside Crypto. From their datasets, following tables are used:

    • ethereum.core.ez_nft_sales โ†’ this table allows access to NFT sales since 2018.

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    Methodology and Marketplace Selection

    In our first step we should select the marketplaces, by locking at the following chart we can see the top platforms by number of sales, which are: Opensea, Looksrare, X2Y2.

    Then we use aggregate functions to extract required information.

    Study Period

    Our study is conducted since the beginning of 2022.

    Relation between Royalty and Sales Count

    This chart depicts the relation between total royalty earned and the number of sales on each platform, the dots should be seen as a dense cloud.

    It can be seen that on all platforms, with the increase of sales, the royalty earned also increases.

    The slope of increase in royalty is a bit higher on Looksrare than X2Y2.

    Relation between Royalty and No. of Unique Collections

    This chart illustrates the relation between total royalty earned and the number of unique collections sold on each platform, the dots should be seen as a dense cloud.

    On X2Y2, the increase in number of collections doesnโ€™t change the royalty earned by creators.

    On Looksrare, there is a small correlation between the number of collections and the royalty earned.

    On Opensea, there is a negative correlation, on the weeks that more unique collections are sold, the amount of royalty earned is decreased.

    Relation between Royalty and Volume

    This chart shows the relation between total royalty earned and the volume on each platform, the dots should be seen as a dense cloud.

    On Looksrare, as sales volume grows, the royalty earned stays the same, therefore we can say that there is no correlation between increase in volume and increase in royalties in this platform.

    On X2Y2, the situation is even worse.

    Opensea, on other hand, as the volume increase, the royalty also increase linearly.

    ๐Ÿ”— Impact of Royalties on NFT Market Activity

    ๐Ÿ“ˆ General Metrics

    Weekly Average Royalty per Trade

    The next chart depicts the weekly average royalty per trade on each platform.

    Looksrare has always had the highest number, followed by Opensea and x2y2

    Royalties Earned by Creators

    This charts depict the amount of royalty each platform has earned for their creators.

    It can bee seen that Opensea is the dominant platform in this area.

    In the past week, Opensea accounted for 90% of the royalties earned by creators, while Looksrare has earned a mere 1.5% for the creators, X2Y2 numbers looks better and more promising.

    Total Fees Paid by Buyers

    The next charts depict the total amount of fees that buyers have paid to the platforms.

    Looksrare have lost it shares in fee generation significantly, while Opensea has kept it share for multiple weeks.

    Royalty Shares

    The first chart depicts the percentage of sales volume that goes to creators as royalty. The number is more consistent and higher in Opensea.

    The second chart shows the % of fees that goes to the creators.

    It can be seen that Opensea aways gives around 70% of the fees earned to creators, while other platforms give less.

    There has been weeks that X2Y2 have given all the incomes to the creators.

    The overall number of sales has declined over time in general.

    While Opensea and Looksrare numbers declined, X2Y2 sales count has increased.

    The number of unique collections have grown since 2022,

    The growth happened on both Opensea and X2Y2. While the numbers have declined for the Looksrare platform, It seems less and less creators are interested in publishing their works on Looksrare.

    olume

    The following chart depicts the weekly volume of each platform over time since Jan 2022.

    First thing that can be noticed is the decline in volume that correlates with the bear market situation.

    Looksrare and Opensea had way more volume before June.

    Since June there is some kind of flipping, X2Y2 had more volume since June.

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    ๐Ÿ’ฐ What is Royalty?

    Creators can fix a royalty in the smart contract during the minting of the NFT. the amount is automatically sent to the artistโ€™s wallet once a subsequent sale is executed.

    There are no intermediaries needed nor does this depend upon the wishes of whoever is transacting the royalty.

    By setting a royalty, the creator of the art always benefits from the sales of their arts.

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    ๐Ÿ›’ Platform Comparison

    The next charts depict an comparison between selected platforms.

    Opensea account for more than 90% of the NFT sales on Ethereum, it has more unique collections traded pn each day and account for 50% of the volume traded.

    Statistics

    The following chart show the statistics for the royalty earned on each platform.

    The next chart depicts the buyer to seller ratio in each platform.

    it can be seen that the number of buyers on Opensea is a bit more than the sellers.

    Royalty Distribution

    The next chart is interesting, It depicts the distribution of the amount of royalty based on no. of sales on each platform.

    It can be seen that:

    • almost 80% of X2Y2 sales are 0% royalty sales.
    • 28% of all Opensea trades, earn less than 5% for their creators.
    • Fewer creators on Opensea have opted for 0% royalty.

    0% royalty is huge thing on X2Y2, while Opensea creators prefer to earn royalties.

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    โœ๏ธ Contact Me!

    Discord: ThatGuy#8467

    Twitter: @realAminTakhti

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    โŒ› Active Hours

    The next chart depicts the active hours based on the amount of royalties earned.

    It can be seen that amount of royalty earned during morning hours (UTC) decreased.

    The amount earned on each day is almost the same on all platforms, people donโ€™t retire on weekends!

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