Try Quests to earn cryptoWallet activity with regards to Algorand NFTs
This analysis is a review on wallet stats on NFTs in the Algorand blockchain.
Let's first obtain the number of active wallet buying, selling and transferring NFTs in the Algorand Blockchain every month.
We can see that before September 2021 there was not much buy activity. When the crypto market started pushing up towards the new ATHs, we can see that there was a huge spike in the number of unique wallets buying NFTs on the Algorand blockchain. As in 2022, the market started to turn bearish, the amount of wallets buying monthly decreased month after month. Nevertheless, April and May seem to have attracted many wallets to buy NFTs due to some big collections launching.
The number of active wallets selling NFTs is very similar to the number of active wallets buying NFTs. We can observe that they follow the same pattern, where October 2021 hit a max, and the number had slowly decreased the following months. Nevertheless, it seems like April and May 2021 also have seen new spikes that have formed new ATH in the amount of wallets selling NFTs on Algorand.
Now, let's look at the number of wallets that minted an NFT and sold it. The methodology to do so, is to group each NFT by tx_group_id when the date of the transaction was the first one for that asset_id and tx_group_id is not null, as it means that it was the first sale (if it is null then it is an NFT transfer).
In this dashboard, we analyze the most popular projects as those that are generating the most transaction volume in May 2022. To do so, we will use the flipside_prod_db.algorand.asset_transfer_transaction table and count how many transfers each NFT has. Then, using the flipside_prod_db.algorand.asset table we will group them by creator_address and count how many transfers each collection has.
These are the 3 collections with most addresses. As it can be seen in the following tables, these collections are:
- Pixel Squirrels: 66.12k transfers
- Goon Squad Elite: 29.98k transfers
- SMC: 29.94k transfers
To obtain the NFTs that exist in the Algorand blockchain we have to use the flipside_prod_db.algorand.asset table. This table contains a current list of all the assets on the algorand network with their asset_id, current status and other info. Next, we have to filter by total_supply between 1 and 100. Most NFTs have supply = 1, but there are some cases where the supply can be higher than 1 (that's why we use the 100 upper threshold). Nevertheless, that can include some tokens (no NFTs), so just to make sure that we are only getting NFTs, we also filter by decimals = 0.
In terms of the number of wallets that transfer NFTs we can see that it makes sense that the pattern is also the same. The only difference is that the number of active wallets is higher as a part from the sales, there are NFT transfers between wallets.
NFTs had a massive adoption at the end of 2021, but how many wallets really own them?
The chart below shows that only 3.43% of all Algorand wallets hold an NFT. Even though this number might seem very low, it has to be understood that many wallets are created on a daily basis which are used for a specific operation(swapping, staking, borrowing,...) and don't have any kind of activity afterwards. Moreover, some people forget their seed phrases, so even if they wanted to purchase an NFT they would have to create a new wallet. With the ability to create a new one within seconds, it makes the number of NFT holders go down in percentage compared to non-NFT holders.
The wallets that minted and then sold the NFT follow the same trend as the number of NFT sellers. The difference is that this time the number is a bit lower, which makes sense as not every user who mints, sells. When we add the cummulative wallets, we can see that the difference between months is very little, almost looking like a straight line.
This dashboard will analyze the following:
- Active wallets that are buying/selling/transferring NFTs monthly
- Percent of Algorand wallets that hold an NFT
- Number of total wallets that have minted NFTs and sold them, month over month and cumulatively
- Most popular projects in terms of most transaction volume this month (May 2022)