The Impact of FTX on Solana NFTs

    Introduction

    • In this Analysis, You will Read about NFTs on Solana. Last month, the FTX exchange meltdown and As you may know, FTX is one the biggest investors of Solana. We want to know how the FTX crash impacts Solana NFTS.

    • I divided my dashboard into two sections.

      • Section 1: Total NFTs activities on Solana
      • Section 2: FTX impacts on selected Collection from Parameter.
    • For Each section you will read these parameters:

      • Daily Sales
      • Sales Volume in USD and SOL
      • Buyers/sellers/New Users
      • Average/Median/Min/Max Price in USD and SOL
      • Top Collections Before and After FTX
      • Top Buyers and Sellers before and after FTX
      • Average days of holding NFTs ( Section 2 Only )
      • Top Crossovers ( Section 2 Only )

    Analyzed by Hess - Reading Time Almost 15 Min.

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    Secondary Sales

    In My Opinion, We can see the impacts of the FTX crash on this part because the previous charts directly related to new projects. Some days or months, there are no more projects or minting. But users can always buy and sell NFTS on Secondary markets.

    • I can not say FTX impacts on impacts on Daily sales activity. It seems the Bear market was impacted more. Because as you can see, Two weeks before the FTX crash, The Total Number of sales decreased from 70-80K to 30-35K. After the FTX crash, The total daily sales decreased like before the FTX.
    • The only change that I can see is that the daily share of buyers decreased by 5%. It’s Totaly normal!
    • Due to the beginning of October, The average number of sales was 49K before FTX and 31K after FTX.
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    Top Collections and Users

    let’s examine how Top collections changed 15 days before and after the FTX crash.

    • 8 Top collections before FTX still are top collections. Degen Apes and Fox Federation weren’t in Top collection list before FTX but not they are.
    • The collection’s sales amount in SOL after FTX was much higher than their sales before FTX. For Example, Degods sales were 76K SOL Before FTX but after FTX increased to 394K SOL.
    • Before FTX Y00ts had more volume but after FTX degods.
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    The Top buyers and sellers almost changed completely before and after FTX crash. Only two from before FTX still are in Top List.

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    New Users

    It seems active users on Solana NFTs are buying and selling NFTs more because the total daily number of new users dropped after the FTX crash. The total daily number of new users before FTX was 10-12K per day but after FTX was 2K-9K per day. Overall, The average number of new users was 9.7K Before FTX and 3.2K After FTX. Almost dropped by 70%.

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    Users Breakdown ( 15 Days before and After FTX )

    • From these charts, I can say whales are keeping Solana NFTs alive. Because the total number of users that spent more than 100 SOL before FTX was 1666 unique wallets but after FTX was 3053 Unique Wallets.

    • Still, the large group of users spent 1 SOL.

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    Collection Overview

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    Daily Sales

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    Parameter Guide: This Parameter Only works on Section 2 of this dashboard. You can type your favorite NFT collection and then click on Apply All Parameters. I Listed some Popular collection names on Solana in the below table:

    y00ts: mint t00bsclaynosaurzbeep boop batteryabclily
    colizeum eliteokay bearssolana monkey businesslunar nftblocksmith labs
    castaways treasure chestssharx by sharky.fimeta_tattoo_clubcritters cultfamous fox federation

    NOTE: IN ORDER TO USE PARAMETERS, YOU SHOULD LOG IN TO FLIPSIDE WEBSITE.

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    What is Solana?

    • Solana is a blockchain platform designed to host decentralized, scalable applications. Founded in 2017, it is an open-source project currently run by Solana Foundation based in Geneva, while the blockchain was built by San Francisco-based Solana Labs.
    • Solana is much faster in terms of the number of transactions it can process and has significantly lower transaction fees than rival blockchains like Ethereum. The cryptocurrency that runs on the Solana blockchain—also named Solana (SOLUSD) and using the ticker symbol SOL—soared almost 12,000% in 2021 and at one point had a market capitalization of over $66 billion, making it the fifth-largest cryptocurrency by this measure at the time.

    What is NFTs?

    • A non-fungible token 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.

    FTX Impacts on Solana NFTs

    • The near collapse of FTX, the fourth-largest cryptocurrency exchange, may end Solana NFTs. For those that aren’t aware, there’s been a destructive situation between FTX and its competitor, Binance. It has unfortunately caused SOL to plummet over 40% in the last 24 hours and 50% in the last seven days! So, Sol is sitting at a price of $13.80, which is 94% below its all-time high of $351.96.
    • The situation between the two exchanges is what caused SOL’s massive decline, but where did it all start? For starters, it all started when Binance CEO Changpeng Zhao tweeted that FTX was spreading rumours about Binance behind closed doors to the U.S. He then tweeted that he will be selling $2 billion in FTT tokens (FTX native token). It’s worth noting that, unlike Bitcoin, FTT is liquid, which resulted in the CEO being able to own such a large amount of tokens. In other words, once he sold, it caused a major sell-off that made FTT plummet by 63%. Sadly, this affected the whole crypto market. FTX’s Samuel-Bankman-Fried was viewed as someone who could assist crypto with regulatory approval.
    • With all this pressure Solana is facing, it’s hard to tell who will stay in the ecosystem. Will everyone jump ship or will the true builders remain and act as if nothing happened? In short, we don’t know what will happen to Solana NFTs in the coming days. This could possibly be one of the worst crypto disasters we’ve ever seen so. Moreover, there are big players in the ecosystem, like Magic Eden, who are trying to keep members level-headed.
    • Nonetheless, the community members are trying their best to stay afloat in the midst of this crazy price action. Many of them had some interesting things to say, including the @SolanaMBS NFT project.

    Source: ****

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    Section 1: FTX Impacts on Solana NFTs

    Mint Activities

    Let’s Start with mint activities on Solana. Unlike Secondary sales, Mint has a direct relationship with new New Collections. As you may know, the FTX exchange crashed on November 7. I analyzed the mint activities from 1 month before the FTX crash until now.

    • Overall, The total daily number of mint transactions and minter decreased over time. The number of mint transactions decreased from 60-70K per day in October to 10-30K before FTX. After the FTX crash, The total daily number of mint transactions decreased more for short days. But after a week, The total daily number of transactions went back to normal like the days before FTX.
    • Also, The total daily number of minters decreased after FTX Crash. However, Before that, The total daily number of minters decreased too.
    • The average number of mints before FTX was 37K and 17K after FTX. Almost dropped by 50%.
    • Also, The average number of minters was 6.8K before FTX and 2.2K After FTX. The number of minters dropped more than 70% after the FTX crash.

    The Mint price of some new collections is Free, or only whitelisted users can mint new NFTs. But based on those collections that were not free, I analyzed the mint volume in SOL and USD.

    • Like the number of mint transactions and minter, The total daily mint amount in SOL and USD also decreased. Due to the Sol Price, The average Sol amount didn’t change too much but based on the average volume in USD; The average mint volume decreased more.
    • Based on the SOL amount, I can not say FTX impacts this parameter. Because The total daily mint amount after FTX is higher than the total daily mint amount before FTX. But As I said, Due to the SOL price. ( Dropped more than 60% ), The daily mint volume in USD decreased from 700-800K to below 300K. Almost dropped by 55%.
    • Overall, The average Sol amount per day was 22K before FTX and 27K After FTX. 20-30% growth, But the average mint volume per day was 724K before FTX and 395K after FTX. More than 50% Drop.
    • If we ignore the Sol Price and volume in USD, The average daily mint price has not even decreased, Also, Increased for some days. The average Mint price was 0.7 Sol before FTX but reached 2 SOL After FTX. Based on Volume, The average mint price before FTX was higher than After FTX.

    The total daily minted NFTs charts are like transactions that i talked about it before. So, We can skip this part.

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    Transactions, Buyers, and Sellers are important, but In my opinion, volume is more important.

    • The Sol price dropped more than 60% in less than a week. Before the FTX crash, The total daily sales volume in Sol decreased, and FTX didn’t have any impact on daily sales. Two weeks later, after the FTX crash, The total daily sales volume in SOL and USD increased significantly. The highest sales volume was in late November.
    • Based on USD, The chart is more interesting. The total daily sales volume in USD increased after the FTX crash. The Slope of growth moved fast and reached 10M US dollars in late November compared to 100-2-3M In October.

    It seems, Due to the Sol Price, The average price of NFTs in SOL on Solana increased to keep its value in US dollars.

    • When Sol Price was 33-34 US dollars at the beginning of October, The average price of NFTs was 1-2 SOL. After the FTX crash, The Sol price reached 13-14 US dollars. In that time, The average price of NFTs increased to 5-6 SOL. The slope of growth continued and reached 26 SOL.
    • Based on the average price of the NFTs chart and the Total daily number of NFTs in sales, I can conclude some popular projects become more popular, and some less popular projects become less Popular. Because the total daily number of unique NFTs in sales decreased quickly, we know the sales volume increased in that time. So, I can say users are buying and selling only from popular projects.

    These charts Prove my theory. Due to the Sol Price, The average price of NFTs in SOL on Solana increased to keep its value in US dollars. As you can see, The average sales volume didn’t change but the average sales volume in SOL changed utterly. The average sales amount was 109K in Sol before FTX and 214K after FTX.

    Section 2: Selected Collection from Parameter

    • Right now, The parameter is Degods collection. You can change the parameter and put your favorite collection name.

    Buyers and Sellers

    Sales Volume in SOL and USD

    Floor Price

    Average Days of Holding NFT

    Top Crossovers and Holders

    THE END

    Tweeted dashboard Link:

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :t-rex: Discord: hess#0890

    :calendar: Analyze Date: 2022/DEC/14