Open Analytics Bounty: Solana (November 26)
Introductions:
What Is a Non-Fungible Token (NFT)?
Non-fungible tokens (NFTs) are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other.
Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can serve as a medium for commercial transactions.
NFTs have the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also work to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.
Much of the current market for NFTs is centered around collectibles, such as digital artwork, sports cards, and rarities. Perhaps the most hyped space is NBA Top Shot, a place to collect non-fungible tokenized NBA moments in digital card form. Some of these cards have sold for millions of dollars.
![db_img](https://uploads.flipsidecrypto.com/product/images/pL916bOzVN6W.jpeg)
Questions:
This dashboard is about comparing NFT marketplaces on 6 different blockchains. Blockchains are included Ethereum, Solana, Algorand, Flow, NEAR, and Optimism.
At first, I tried to overall comparison of all the chains together and then dive deeper into each blockchain separately.
Following metrics used for comparison:
- Number of NFTs sold
- Volume of NFTs sold in $USD
- Average price of NFTs sold in $USD
- Number of unique NFTs buyer
- Distribution of total $USD spent on NFT marketplaces by each user
- Distribution of NFTs price
Methodology:
In this dashboard, we are going to compare 6 blockchains in terms of NFTs sale and analytics each one separately. Blockchains are included Ethereum, Solana, Algorand, Flow, NEAR, and Optimism.
At first, I tried to overall comparison of all the chains together and then dive deeper into each blockchain separately.
![db_img](https://uploads.flipsidecrypto.com/product/images/ZmEr3ewbCBCR.jpeg)
In 2022 Solana has really done good job in NFTs and has lot's of great NFT project and got first place. in second place Ethereum get seat and that okay but third place has great competition, Flow that is a NFT blockchain and has lot of great project like NFT all day and NBA top shot and It has had a steady trend while Algorand with help of FIFA NFTs has grown significantly, this clearly show in chart that from half of Sep we see Algorand bars.
Another metrics for comparison is Volume. maybe volume as it self be good metric and we can consider that more than sale count. but in best place. but mix of these seem can be great metric and help us a lot.
We can define this chart as compare first two factor, number of NFTs sold and their volume. as I said in previous parts Solana is popular chain in terms of number of sale and Ethereum is popular one in terms of volume of sale. The chart of this part shows Ethereum have most expensive NFTs too that justifies its high volume. The reason of high price came from point that Ethereum is most trustable and oldest blockchains for NFTs. also for higher Gas fee of Ethereum It is not economical for rug pull projects. Usually the NFT collections that launched on Ethereum have strong support.
Again and again Solana and Ethereum take first two place but this time in number of unique NFTs buyer.
The first part said the number of NFT sold on Solana is more than those sold on Ethereum but here we see the number of unique buyers on Ethereum is more than Solana. With these interpretations, it can be said that NFT buyers in Solana are more loyal and usually buy more than 1 NFT (~8M NFT bought by only ~1.6M unique wallets so each wallet bought 5 NFTs on average).
Also seen the number of unique NFTs buyer increased since the last week of Sep in Algorand blockchain. the main reason for this increase could be FIFA world cup.
Comparison NFTs sale on each blockchain:
Basically power of blockchains with strong NFT base came from to main point:
- Strong public Marketplace a this marketplace help user to sell every standard NFT that they want. like Opens in Ethereum and MagicEden in Solana. This strong marketplace help to growth NFTs in their blockchian and most powerfull NFT blockchain have these.
- Strong NFT collection a in this situation one blockchain has one or more very powerfull collection that only sold in one o limited marketplace and most of NFT sold of one blockchain depend on this.like FIFA NFTs for Algorand or NFL All Day or MBA Top Shot for Flow. in this situation usually blockchain limited on few NFTs collection and not power or varity or community of Strong marketplace ( in single collection maybe there is compatition but in overall no)
notice : power of item one is much more than item two becuase in item one marketplace help to other project growth and new idea came on while in second item seems in limited amount of people can used it.
We see in other blockchain that don’t have one of this situation NFTs not used and sell volume and count record very low numbers.
One of most simplest and important factors in any financial work is sale count. there is no excuse for NFTs and sale count has important roll. of course sale count as alone not good factor because in some blockchain gas fee is so low and we see lot's of bot and wash trading happened in blockchain while in blockchain like Ethereum gas fee is high and not worse to much ( i am not saying that there isn't. just saying in most of time not worse ) . but let's start from sale count and next step by step add more factor
Deep on Solana blockchain:
for all user that want to see all information about one blockchain in one part i created this section. you can change 2 parameters :
- start_date : start date of range that you want review. all total and data calculated from this range
- end_date : end date of range that you want review. all total and data calculated until this range
so let’s these variable to get your data.
The range between 100$ - 1000$ is most repeated range for total cost spent by each user of each blockchain on NFT marketplaces But let me to tell you specifically about each chain.
Ethereum: Most of users spent between $100 and $1,000 on NFTs.
Solana: Most of users spent less than $1 on NFTs.
Flow: Most of users spent between $100 and $1,000 on NFTs.
Optimism: Most of users spent between $10 and $100 on NFTs.
Algorand: Most of users spent between $10 and $100 on NFTs.
NEAR: Most of users spent between $10 and $100 on NFTs.
The user’s behavior of Solana surprised me because most of it's users spent less than $1 on NFTs while the average NFTs price of that is in second place and have the second most expensive NFTs.
The range between 1$ - 10$ is most repeated range for NFTs price of each blockchain. But let me to tell you specifically about each chain.
Ethereum: Most of NFTs sold between $10 and $100.
Solana: Most of NFTs sold between $1 and $10.
Flow: Most of NFTs sold between $1 and $10.
Optimism: Most of NFTs sold between $10 and $100.
Algorand: Most of NFTs sold between $1 and $10.
NEAR: Most of NFTs sold between $10 and $100.
As you can see the number of wallets bought an NFT is much more than those bought more than 1 NFT.
The following metrics shown in comparison section:
- Number of NFTs sold: count the number of NFTs sold on each blockchain.
- Volume of NFTs sold in $USD: sum the price of NFTs sold on each blockchain.
- Average price of NFTs sold in $USD: calculate the average price of NFTs sold on each blockchain. This value shows which blockchains have more expensive and which cheaper NFTs.
- Number of unique NFTs buyer: count the number of unique wallet that bought an NFT on each blockchain.
- Distribution of total $USD spent on NFT marketplaces by each user: Each NFT buyer have spent some money on NFT marketplaces. we need to sum total money spent by each user. Total spent amount can be categorized into six categories according to volume. we should count the number of users fall into each category based on their USD spent on NFTs. The categories are:
- less than $1,
- between $1 - $10
- between $10 - $100
- between $100 - $1,000
- between $1,000 - $10,000
- more than $10,000
- Distribution of NFTs price: we need to used from all selling prices and then used the above categories and count the number of NFTs fall into each category.
All the above metrics are calculated separately for each blockchain too. In addition, the following metrics show in each blockchain section:
- Average of total number of NFTs sold each day and hour: count the number of NFTs sold in the desired blockchain by day of the week and hour. Then, we get the average value per hour of the weekdays. In this way, we know what days and hours more NFT sold.
- Average of total volume of NFTs sold each day and hour: sum the volume of NFTs sold in the desired blockchain by day of the week and hour. Then, we get the average value per hour of the weekdays. In this way, we know what days and hours have more volume.
there is two abviouse thing in each chart:
- Ethereum by far has largest volume
- the general trend of the sales volume chart is downward in general Ethereum NFTs has higher age and there is more great project in Ethereum and some of them is older than all of these blockchains. Solana while has highest sale count but lower volume and shows one or both of these two factor : 1. Solana NFT projects has fake sale transaction 2. the price of Solana NFTs is much lower. as my experience second factor is totally true. most of Solana NFT has less than 1K or 10K USD and very rare to see higher price while in lowest price of some collection is higher than 10K or 50K and this price different shows while Ethereum NFTs volume is higher. while in transaction count Algorand and Flow has close competition in volume Flow has much higher volume than Algorand. the reasons for than came from point that Algorand main project (FIFA) has low price while Flow NFTs project has much higher price. Optimism and Near NFT volume is so low that we can ignore them.
NFT tables in each schema are used to find metrics to analyze NFTs. The main challenge was to find the price of NFT in dollars, which was not present in some tables.
- Ethereum: To find NFTs on Ethereum used core.ez_nft_sales table. This table stored NFTs price in USD so we do not need to do anything special.
- Optimism: To find the NFTs on Optimism follow the way same as Ethereum. The table is core.ez_nft_sales and it stored NFTs price in USD too.
- Solana: To find the NFTs on Solana used core.fact_nft_sales table. This table is one of them need to calculating NFTs price in USD because the table doesn’t store USD price (stored in SOL). For this purpose, we need SOL price. I found it’s price from Ethereum schema and core.fact_hourly_token_prices table. The contract address of SOL that used to finding token from this table is 0xd31a59c85ae9d8edefec411d448f90841571b89c.
- NEAR: NEAR hasn’t any special table for NFTs but dear pineheart proposed an amazing dashboard for NFTs on NEAR. The NFTs price are in NEAR so we need to convert to USD value. For this purpose, I used core.fact_prices table and got the wNEAR prices and multiplier to NEAR value.
- Algorand: The on-chain activity of Algorand NFTs stored in two separate tables. one of them is regarding to FIFA collection (nft.ez_nft_sales_fifa table) and other one is regarding to rest of NFTs on Algorand blockchain (nft.ez_nft_sales table). In this dashboard I used both of them. The NFTs prices of FIFA collections are in USD but others NFTs are in ALGO. So we need to convert ALGO value to USD value. For this purpose, I used defi.ez_price_pool_balances table and got the ALGO prices from that and multiplier to ALGO value.
- Flow: To find the NFTs on Flow blockchain, I used core.ez_nft_sales table. The NFTs price of this table have different unit. In this dashboard I only consider those are in Flow, REVV, FUSD, DapperUtilityCoin, and FiatToken. I found the FLOW and REVV prices from fact_prices table. The contranct of FLOW is A.1654653399040a61.FlowToken and the contract of REVV is A.d01e482eb680ec9f.REVV. Rest of the units are equal $1.
The chart above shows that high price of NFTs does not guarantee higher sales volume. As you can see, the higher the price of NFT, the lower its volume. The highest volume was created by selling NFTs close to $0.
Conclusion:
- As data shows sale count not good single factor and should used with another factors.
- Sale count + Volume proof that Ethereum is most valuable blockchain for community.
- Seem blockchain with strong marketplace act better than blockchain with only strong collection.
- Seems last months not good for NFTs and reduce hype of NFTs for all blockchain. we see negative trend in both NFT Volume and Sale.
- Solana has highest number of NFTs sold.
- Ethereum has higher unique buyers.
- Ethereum has highest Volume and seem Ethereum Kids are richer than other chains :grinning:.
- Average NFTs price on Ethereum seems is higher than other and with consideration of number of transaction and volume seem more real user is for Ethereum.
- The number of NFTs sold haven’t direct relation with Volume of them, because Solana has higher sales count while Ethereum has higher volume.
- Blockchains Like Near and Optimism are famous chains that weirdly has low amount of NFT sale.
In terms of loyalty, the Algorand users are the most loyal because on average, each Algorand user who has dealt with NFTs, bought 77 NFTs. The second place belongs to Flow blockchain, On average each Flow user’s who has dealt with NFTs bough 37 NFTs. The third on is Solana that each user bought ~17 NFTs.
In terms of wealthy, The Ethereum user’s are most rich because on average, each Ethereum user who has dealt with NFTs spent ~$6.5K in this market.
Solana and Flow blockchains are in close competition for the 2nd place. The next place belongs to Solana. Each NFT users’s on this ecosystem spent ~$900 on market.