Algorand is a self-sustaining and decentralized blockchain that provides secure, scalable, and efficient applications. Its consensus mechanism is permissionless and pure proof-of-stake (PPoS) that ensures full participation, protection, and speed within a truly decentralized network. Algorand can handle a large transaction throughput and is the first blockchain to provide immediate transaction finality.

The foundational technology of Algorand is designed to support all asset types for the future of finance, including Non-Fungible Tokens (NFTs). As NFTs become more popular, Algorand paves the way for fast and affordable options with low fees, no forking, and minimal carbon footprints. The transaction cost of minting an NFT on Algorand can be as low as 0.001 ALGO due to its PPoS algorithm. Also, it provides the same capabilities as other popular chains and allows users to tokenize a high volume of NFTs without the harsh environmental impact and high network fees.

In this dashboard, the monthly overview of active wallets engaging in NFT transactions including both buys and sells of NFTs has been presented. Also, the most popular NFT projects with the highest transaction volume in May 2022 have been determined.

Methodology

The data for this analysis have been collected from various tables of the algorand schema. The asset IDs of all of the NFTs were selected by limiting the asset table with those assets that have the total_supply of only one. The number of unique buyers and sellers has been calculated using the asset_transfer_transaction table. The total number of wallet addresses was measured using the account table and the number of NFT holders was measured using the account_asset table.

To be able to analyze the number of mints and the sales of minted NFTs, first, the number of minters was calculated using the asset_configuration_transaction table and then the result was joined with the asset_transfer_transaction to assess the sales of newly minted NFTs.

For the analysis of top projects, the tx_group_id of every single NFT that was transferred were collected using the asset_transfer_transaction table then the sales number and volume of them were measured using the payment_transaction table.

The top collections in May 2022 were manually labeled using their creator_address and the data on the nftexplorer website.

Analysis of Wallet Addresses

The monthly and the cumulative number of unique wallet addresses that sold or bought an NFT have been plotted on the following chart. As it is indicated, the number of both buyers and sellers has seen a massive surge starting in the summer of 2021. However, the number of buyers grew to almost three times the number of buyers which indicates that there is more interest in holding the NFTs for the long term. The number of buyers had a major drop between December 2021 and February 2022 which coincide with the start of the current crypto market downtrend.

The analysis of unique wallet addresses on the Algorand network has demonstrated that there are 13.7 million active wallets on the platform 114 thousand of which hold at least one NFT. By measuring the ratio between these two numbers, it was indicated that only 0.83% of all the wallets on the Algorand hold NFTs.

In the following graph, the number of NFT minters has been plotted in comparison with the number of these addresses which sold their NFTs after minting. As it can be seen on the chart, the overall trend is similar to the plot of sellers and buyers. However, after the initial surge in the summer of 2021 and with the start of the current crypto downtrend in December 2021, the number of minters drastically decreased to almost the same level as the sellers. This can be considered as an indication of the lack of interest in the Algorand NFTs and the minters prefer to sell their NFTs in a short period after their mints instead of holding them for longer times.

The sales analysis of all NFTs in May 2022 has indicated that a total of 18.2k NFTs from 739 collections were sold multiple times in slightly above 25k transactions. The average price of these NFTs was around 166 ALGO and their total generated sales volume was more than 4M ALGOs.

Conclusion

The sales data has demonstrated that the "Wise Uncle 21" had the highest sales volume with above 100k ALGOs. After that, NFTs from the "Young Brute Gang", "Wise Uncles", "Graffealgorand", and "Al Goanna" were in the top 10 NFTs with the highest sales volume in May.

Top NFT Projects

Among all the NFT projects, those with a sales volume of above 50K ALGOs have been selected as the top NFT projects. Surprisingly, the "Earth64" outdone all the others and registered a record 540k volume which was almost double the next collection. The "M.N.G.O", "Graffealgorand", "Wise Uncles", and "Al Goanna" had the 2nd to 5th places with a sales volume of more than 200k ALGOs. These 5 projects accounted for more than half of the sales volume among the top collections.

From the perspective of the number of transactions, the "Knights of Algorand" has the highest number with more than 1.7k transactions. The "Alien Tourism" and "Untamed Emus" collections were 2nd and 3rd with around 1000 transactions in May. The 4th place belonged to the "Flemish Clones" project with nearly 650 transactions. These 4 projects accounted for more than 50% of the total transaction numbers combined.

In conclusion, the wallet addresses holding NFTs and the top NFT projects have been evaluated in this analysis. It has been shown that the number of buyers and sellers of NFTs massively increased month over month in the past year with the number of buyers outpacing the sellers which indicate that buyers tend to hold their NFTs after their purchases. On the other hand, the current crypto market downtrend has resulted in the rapid sales of newly minted NFTs while fewer minters prefer to hold their NFTs since December 2021. Overall, less than 1% of all the wallet addresses in the Algorand network have had an NFT which indicates a huge margin for growth in this sector.

The analysis of top NFT projects demonstrated that although the crypto market has been in a major downtrend since the beginning of 2022, especially in May, the Algorand network has seen notable sales in its NFT sector. Collections of different sizes have had a share of the total NFT sales. The analysis of volume and number of sales has shown that although big projects had the upper hand in terms of sales volume with more than 25% of the total sales, the large transaction numbers belonged to medium to small size projects. It can be concluded that as the projects grow and their NFTs become more expensive, the number of sales decreases which represents the natural progression of collections in the NFT space.