Try Quests to earn FLOWFlow Trending NFT Projects
In this analysis, the state of the NFT sector of the Flow blockchain has been investigated since the Terra crash. Besides, the sales of top collections, as well as their trend over the period, has also been evaluated.
Flow is a fast, decentralized, and developer-friendly blockchain designed for a new generation of games, apps, and the digital assets that power them. Flow starts with HotStuff, a proven Proof-of-Stake (PoS) consensus mechanism, and adds a unique multi-node architecture to drive dramatic improvements in speed, throughput, and environmental friendliness without sharding or layer-2. They argue that Flow is the greenest Web 3 network among leading platforms. Minting an NFT on Flow costs less carbon than a post on a social networking site.
The required data for this analysis were collected from the fact_nft_sales table of the flow.core schema. The quantitative indicators were calculated by aggregating different columns of the aforementioned table.
To be able to analyze the crossover wallet addresses, the top 10 NFT projects based on their total sales volume since the 9th of May were selected. Then, the number of buyers and sellers of these projects was calculated.
The total sales volume, number of transactions, number of buyers, and number of sellers of different NFT projects combined have been illustrated on the following chart since the 9th of May. As it can be seen, there is a slight trend to the downside for all of the metrics. Since the Terra crash, the whole crypto industry has been in turmoil, and recent events caused the market to further drop down. One can expect the interest in the crypto industry as a whole to decrease, let alone one of its sectors such as NFTs.
There was a massive spike on the 26th of May and both the number of transactions and the volume increased substantially. The spike in the number of buyers suggests that either a new project was launched or an already launched project offer something new so that it persuaded people to buy its NFTs.
The analysis of the average price of NFTs vs their sales volume has demonstrated that with every spike in the volume, the average prices increased as well. It can also be interpreted as a disruption in supply and demand. Once the demand for a particular NFT project increases, the price of single NFTs in the collection also increases, considering their invariable supply.
The daily sales volume of each NFT project has indicated that almost all of the peaks in the total sales volume plot are related to one of the projects, especially the NBA TopShot NFTs. It is a good cash cow for the Flow blockchain since there are multiple games each week and the TopShot NFTs are dynamic and generated every week. On the 26th of May, there was an event that day where multiple new projects such as Arlequin, NuFi, and Fauna were introduced as a mystery pack which resulted in a massive sales volume.
The cumulative analysis of NFT projects since the 9th of May has shown that the NBA TopShot NFTs have had the highest sales volume and the highest number of transactions in the period with a huge margin compared to others. After that, the NFL AllDay collection, Mystery Pack NFTs, and the UFC Strike collection have been in the next place respectively with a combined sales volume share of slightly above 25%. The share of others was negligible compared to these big players.
The common wallets between the top 10 NFT projects in terms of sales volume have been plotted for both the buyers and the sellers in the next two charts, respectively. As it is demonstrated in the charts, the majority of holders, around 76% of buyers, and 82% of sellers have only traded NFT of a single collection in the measured period. This indicates a huge surge of new users into the Flowverse during this time. Only a few percentages of traders interacted with 2, 3, or 4 collections. Wallets interacting with more than four collections have been completely rare compared to others.
A non-fungible token (NFT) can represent any type of digital asset. For example, artwork, an mp3 file, a video clip, or virtual land. Crucially, the NFT is not the piece of artwork itself; it’s a unique, on-chain token that represents the ownership of the digital asset.
The Flow Blockchain NFTs are environmentally friendly. Flow NFTs have been found by Deloitte Canada to require less energy to create than an Instagram post. According to Flow's website, 12.5 Flow NFTs can be minted for each Google search. They require extremely low fees to buy, sell and interact with. Currently, the Flow Blockchain team reviews all smart contracts before they get published on the Flow Blockchain Mainnet, thus they are less likely to be scams or rug-pulls. These NFTs offer a good user experience and design. They also cannot be sent to users' wallets unless they permit them to receive them. This means users won't receive unwanted NFTs in their wallets.
Flowverse can be viewed as the front page of Flow Blockchain. It is a central hub where users can go to find everything happening in the Flow Blockchain ecosystem. It is a directory that aggregates all information about projects, NFT collections, DAOs, DeFi applications, games, and more built on Flow Blockchain. Flowverse was built by the Flow community for the Flow community. They also partner with Flow projects for airdrops and giveaways.
Flowverse, as the front hub of the Flow blockchain, has been massively growing since its launch by incorporating community engagement, especially on topics they like. The NFT sector of the Flow network has hugely invested in the sports leagues like NBA, NFL, and UFC to have a dynamic and evolving collection of unique moments captured from each match. It could act as a double-edged sword for the overall network growth. From one perspective, the loyal users and fans of these sports will engage with the Flowverse regardless of the market downtrends. On the other hand, new users might not find the content and the active NFTs of the network appealing and prefer to choose other platforms, especially in the current bear market. Overall, while the sales volume of NFTs has had a slight downward trend since the Crash of the Terra network and the continuation of drops in the whole crypto market, some of the projects on the network have seen a steady amount of users engagement with their newly released NFTs.