How do NFT project parties deal with the Ethereum they receive?
Original title: ” Analysis by Nansen: The NFT project earns a lot of money. Is there a risk of Ethereum being smashed?” 》
Written by: Ling Young Loon, Nansen Analyst
Special thanks to Daryl Lau from Mechanism Capital, an investment institution, for helping with this article. Due to differences in smart contracts, Art Blocks and Cryptopunks are not included in this study.
Secondary market indicators
Six months ago, no one would have thought that OpenSea would eventually top the Ethereum Gas Tracker rankings and compete with Uniswap. Today, OpenSea is the second largest gas consumption application, often occupying 10-20% of the entire gas consumption market. OpenSea is currently the largest NFT secondary market. After the project party or artist cast the NFT of the encrypted art project, they began to trade on OpenSea, and other collectors that followed began to select and bid for their favorite NFT works.
Plotting the historical transaction volume together with the number of independent buyers since July, we can see that the interest of buyers in the secondary market in NFTs began to weaken in August. The decline in Ethereum transaction volume may indicate lower sales prices, while the decrease in the number of independent NFT buyers may indicate a lack of new participants entering the NFT field.
Nevertheless, since the August 19 low, NFT trading volume has rebounded strongly. This matches the surge in the average NFT transaction price of OpenSea.
Interestingly, since July, the average ETH price of NFT sales has remained relatively stable, which represents an increase in the dollar value of each NFT. The highest daily price obtained by secondary NFT sales has also been on an overall upward trend.
Investigate the NFT project landscape
Now, we are moving from the secondary NFT market to the primary NFT market. We can describe a universe composed of 645 NFT items. It is estimated that since June, approximately 84,000 ETH has been deposited into the ERC-721 NFT contract. This constitutes the main “sales revenue” accumulated from the address where these NFTs were first minted. Approximately 75,000 ETH has been transferred from this type of contract. 573 projects have transferred ETH out, while 72 projects still have not moved the ETH in their vaults.
Divide project distribution by main sales revenue
Only 80 projects achieved first-level sales revenue of 300 ETH and above. The median ETH income is 10.2 ETH.
Project sales revenue accumulated to August 16
NFT casting participation by address
From June to mid-August, an estimated 75,682 addresses minted NFTs, and on average each address generated 3.16 unique NFTs (average). Interestingly, most addresses only create a unique NFT project.
What will happen to these Ethereum revenues-or will these projects dump your ETH?
How does the project party handle all the ETH they receive? Now, we only study projects with sales revenue of more than 20 ETH, and analyze the ETH transferred from the project vault since June. This is usually based on a contract call recorded as an internal transaction on Etherscan.
We get a list of recipients and find out which addresses they send ETH to after they receive ETH from their respective projects.
Further obtain this address list and check whether they are physical addresses or contract addresses. If it is a contract address, we will not track any further transactions from these addresses and delete them from the sender list in the next step. If not, find out to which address they sent the ETH after they received it from the previous source.
Repeat the above steps 2 times. Therefore, a total of 4 levels of transfer were found.
Since each subsequent recipient address may spend more Ethereum than they receive from NFT sales, there is no clear way to absolutely limit whether the Ethereum they spend “from” additional NFT revenue. However, we can assume that the percentage of expenditure for each type of entity should be a representative measure of how they choose to spend their income. The results are as follows.
Approximately 52.3% of Ethereum from major NFT sales are still circulating in non-physical wallets. 10.4% has been used in DEX as liquidity or exchange. 3.6% have been deposited into centralized exchanges, while 17.7% have been re-injected into NFT projects. This includes NFT casting and markets such as OpenSea or Rarible.
We removed the ETH funds flow to non-physical entities and checked the Ethereum funds flow to the physical part more specifically.
Almost 22% of ETH funds flow returned to OpenSea, presumably to buy more NFTs. Binance tops the list in terms of CEX deposits, accounting for 13.75% of Ethereum traffic to entities. Uniswap followed closely behind with 9%. Approximately 6% is also used for CryptoPunk-related activities and may be used as funds for purchases.
in conclusion
NFT is a brand-new vertical product that captures the point of product market matching. However, the industry is still discovered by certain profit-seeking behaviors. There are also some signs on the chain that the founders of certain projects deliberately bought certain projects high prices, and this behavior may indicate that a shuffling transaction is in progress. Nevertheless, the healthy distribution of NFT casting and the increase in the number of unique buyers indicate that the NFT community is really growing organically. Certain projects, under the governance of their own communities, also stand out by reinvesting major sales revenues into NFTs.
Source link: www.8btc.cn
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