Introduction
This week's NFT recap spans across different metrics such as 7D smart buys, 7D top collections, 7D smart minters, upcoming NFTs, and takeaways.
Our weekly recap aims to provide a more comprehensive overview of the NFT market and general sentiment of top-performing collections.
7D NFT Market Overview
This week’s highlights
The 7D NFT Market Overview covers an outlook of market activity over the past 7-days. In the chart below, there are collections ranging from newer ones, to more historic collections that were deployed 200+ days ago.
7D Market Overview (excluding LooksRare data):
7D Market Overview (excluding LooksRare data):
Some of the more recent projects in the 7D market overview, include:
- Azuki
- HAPE PRIME
- CryptoBatz by Ozzy Osbourne
- Terraforms
- FULL SEND METACARD
Some of the more notable and established projects (150-270 days interval), include:
- Meebits
- dotdotdot
- Loot
- CryptoPhunks v2
- BAYC
LooksRare - Wash Trading
Nansen’s recent article, published on Jan 25, 2022 by our analyst, Louisa Choe, analyzes wash trading in the context of LooksRare platform. This might have influenced the data, in terms of trading volume, over the past 7 days.
“LooksRare incentivises NFT swaps on their platform by offering rewards to buyers of eligible collections. This reward system enables buyers to earn more LOOKS periodically.”
As such, this incentive program has generated a massive surge in trading volumes of particular collections with the motive of accumulating more LOOKS tokens. Louisa also argues that in the mid-to-long term prospects, the “platform fees act as a mechanism to deter prolonged wash trading behaviors, especially when trading rewards are reduced over time.” Read full article [here]
On LooksRare’s website, it was stated that any collection that reaches 1000 ETH trading volume on LooksRare will be automatically added to the list of collections eligible for trading rewards. In addition, there are 125 collections that were specially curated by LooksRare that are eligible for trading rewards upon launch. This is also another reason why wash traders are taking advantage of collections eligible for trading rewards that have 0% royalty, such as Meebits, Terraforms, dotdotdot, etc. so their cost basis to wash trade is significantly lower.
Here’s what went down for Loot Project (worth an honorable mention):
TLDR: Loot was one of the most heavily washed-traded tokens on LooksRare, because of its zero royalty setup. The community rallied to get it set to 5%, the same as OpenSea. One of the wash traders, unfortunately, missed the memo and accidentally made a $1m donation to the LootDAO.
Here are the top collections with the highest trading volumes (past 7 days):
- Meebits
- Terraforms
- dotdotdot
- Loot
- CryptoPhunks V2
In the 7D most traded NFTs dashboard, we can see that Meebits #17452 had total sales of 116, with 2 different buyers and sellers. Upon checking the contract for the buyer and seller for Meebits #17452, it was evident that it was a series of back-and-forth transactions between the same buyer and seller.
Another example by DappRadar’s Top 10 NFT Sales (as of Jan 17, 2022), it seems like the 10 top NFT sales were Meebit #13824, for 15K WETH. We can see the same Meebit in the second place, followed by different NFTs from the same collection. Traders buy and sell Meebits with their own wallets.
On 19 January 2022, there was over 75,179 ETH in Meebits volume alone, followed by 26,470 ETH in Terraforms, 16,975 ETH in Loot, and 906 ETH in dotdotdot.
High ETH-value wash trading can be profitable as long as total volumes do not exceed the levels that LOOKS price can support, LOOKS price continues to increase from a new wave of new buyers, and rewards emissions remain high. It will be an interesting play in Phase B of rewards emission, once the trading rewards halves. As a result, we might see a decline in trading volume overall.
Opensea and LooksRare Trading Volume
The chart above compares the trading volume between OpenSea & LooksRare (11 Jan-25 Jan 2022). We can observe that the trading volume in LooksRare appears much more volatile compared to Opensea’s. Based on Louisa’s in-depth research on LooksRare, she remarked that this volatility in volume traded on LooksRare can be due to two possible reasons which include: 1) LooksRare is still a new platform and the user base is yet to stabilize, and 2) trading reward schedule (24-hour interval) may have influenced users’ behavior around how they time their trades.
7D Smart Flow
Nansen Smart Money Labels
There are four types of NFT smart money labels on Nansen:
- Smart NFT Trader - top addresses in realized NFT profits + top addresses based on our internal trader score metric.
- Smart NFT hodler - hodlers are the strongest of hands who can hold on to winning NFTs despite going through turbulence of possible massive losses.
- Smart NFT early adopters - top addresses that have invested in selected blue-chip projects before a specific date and are still holding.
- Smart NFT minters - top addresses that have minted and realized significant profits across multiple collections in the last 60 days.
If you are curious to know more, visit our Wallet Label Guide!
This week’s Smart Flow
Smart flow refers to the net flow (buys-sells) of users.
We are aware that many buyers might have sold within the week, hence, an overall flow is used to identify the total volume flow between buyers and sellers. This particular dashboard is subjected to limitations (e.g: A buyer could have bought 5 NFTs for cheap and sold 1 at a high price, which would make the flow negative in volume. The buyer would also be classed as a seller even though he’s still holding 4 in his wallet).
This week’s Smart Mints
This chart is a 7D overview of smart mints. Smart NFT Minters are top addresses that have minted and realized significant profits across multiple collections in the last 60 days.
In Top 3, we have:
- CryptoBatz by Ozzy Osbourne [68 smart minters]
- FULL SEND METACARD [67 smart minters]
- Dreamlands [59 smart minters]
CryptoBatz is a collection of 9666 Bats, directed by Ozzy Osbourne. Ozzy Osbourne is one of the most iconic rock icons to date.
Looking at the profit leaderboard charts for the Cryptobatz collection, it was evident that two addresses managed to profit off over 10k% only upon purchasing one NFT. CryptoBatz followed a dutch auction format, starting the mint at the price of 1.666 ETH per NFT, and reducing to 0.1 ETH over a four-hour period. A dutch auction makes sense for such a collection as it allows whales the opportunity to purchase the NFTs at a higher price without necessarily competing with small buyers. Presumably, if users manage to get whitelisted, pre-sale members will be able to mint CryptoBatz for 0.08 + gas fees. Opensea User bought 1 NFT at 0.1057 and sold it for a total profit of 12 ETH. A buyer by the name of Vodnik.eth spent a total of 0.0981 and sold his NFT for 9.9 ETH.
FULL SEND METACARD (website/ twitter)
FULL SEND METACARD is an NFT collection by a Youtube group named NELK Group. This group has over 7 million followers who made a name for themselves out of creating wild content, from pulling pranks on strangers to partying. In just about 12 hours upon launching, the discord server has generated over 121K followers. This collection launched on January 19, 2022 and was available to mint for 0.75 ETH per access card. With over 10K passes available, the collection still managed to sell out within a few minutes due to massive demand. According to their roadmap, this pass will allow access to branded ventures like gyms, lounges, and restaurants, and the same applies to ventures in the metaverse. While it appears to be popular in demand, it will be interesting to see how the team executes its roadmap.
Dreamland Genesis (website/ twitter)Dreamland Genesis was a stealth launch that sold out within a matter of minutes. Currently, the project is hosting a Batch 2 sale, with plans to embrace “a project by Dreamers, for Dreamers.”
Dream Haven will be an MMORPG metaverse game built completely from scratch with our community and project goals in mind. Players will be able to use micro dreamers, derived from their original Genesis dreamer NFT, to earn, socialize, complete quests and more.
The Dreamland Realm will comprise and incorporate multiple levels of gameplay and tasks that link into the lore, $DREAM tokenomics and IRL utility.
7 Potentially Interesting Plays to Watch
Note that these projects are projects that are highly raved about, and/or, projects that might be interesting plays, but only time will tell.
TreasureDAO ecosystem (in just 5 months):
- 11+ partnered projects
- 14+ sub-DAOs / guilds
TreasureDAO is planning multiple product launches (e.g. new mine, Bridgeworld, LIFE, Battlefly, generalized marketplace) around the unlock date and is introducing token sinks, to keep MAGIC staked.
Did you know Nansen has added Arbitrum to our product roadmap? You can upvote your feature requests at feedback.nansen.ai!
Bridgeworld is a P2E game that focuses on maximizing the harvesting of the $MAGIC token through a variety of core gameplay loops which appeal to a wide variety of players.
Currently, DefiKingdom comes close to Bridgeworld. There is a large communal aspect to this gameplay - it turns the single gameplay loop of DFK into a multiplayer one through the addition of Harvesters which require teamwork. In comparison, JEWEL market cap is currently 5x more than MAGIC.
FloorDAO provides deep and instant liquidity to blue-chip NFTs.
By increasing liquidity, this helps with defining reliable price floors and allowing the fair market value of NFTs to be established. FloorDAO is launching soon (No presales).
FloorDAO aims to become the largest decentralized NFT market maker through the use of Protocol Owned Liquidity and NFTX to earn high yields for its treasury.
Crypto Coven is a women-focused NFT collection that aims to onboard more women into Web3.
It is interesting to see the number of transactions that are not floor purchases. This indicates that most buyers are not for the purpose of floor sweeping & flipping. There is an increasing trend of purchases >3x the SMA than per usual.
The narrative for women-focused projects has also been increasing in the space - especially projects focusing on onboarding and inclusivity.
- JPEG'd (twitter)
JPEG'd is a lending protocol for NFTs.
This protocol allows NFT holders to borrow against the value of their favorite .jpeg profile pic. The NFT market is the driving force behind DeFi, and there has yet to be an established lending protocol for NFTs.
NFTs are illiquid assets that the market has trouble pricing. Solution? A ChainLink oracle specializing in establishing a floor price and filtering out wash-trading.
Zodiac Capsules is a collection of 12 different zodiacs. It was a free mint if you owned a Capsule House NFT. Current floor is at about 1.35 ETH.
The utility for the Zodiac Capsules is in conjunction with Capsule House PFPs. You can burn the Zodiac Capsule NFT to receive a swappable animated background for the PFP.
Capsule House hatching on January 31, 2020.
Zodiac Capsules add an additional utility layer to the genesis collection and will be burned for a swappable background, creating a deflationary supply.
Crypto Unicorns is a farming gameplay that involves players purchasing Land NFTs. Individual land can be combined by players into neighborhoods designed for highly social real-time gameplay. In this fashion, players can customize their Farm and show it off to the world! The highly concurrent nature of these neighborhoods allows us to distribute epic live events to their entire player base in real-time.
They were featured Delphi's Podcast here where they covered an interview with Aron, co-founder of Laguna Games.
(In the episode, they covered game mechanisms, land sales, $UNIM $RBW tokens, and more)
- Constant Rate Issuance Sales Protocol (CRISP)
CRISP was featured in Paradigm's research report. This paper introduces the Constant Rate Issuance Sales Protocol, or CRISP, a pricing mechanism that aims to sell NFTs at a targeted rate over time.
CRISP tracks the rate at which NFTs are being sold, and compares it to a target rate.
When NFTs are being sold too quickly relative to the target rate, we want to be able to adjust prices quickly. The higher the sales rate compared to the target rate, the faster we want to raise prices.
Useful Tools to Track Upcoming Mints
- Nansen’s ‘Mint Master’ Tool
- Rarity Tools
- ChaChang Daily NFT Tracker + Floor Tracker
- Omelette Pool (subscription-based)
- Ape O’ Clock
Takeaway
We hope you all found this report useful! Please reach out if you have any questions or suggestions on how we can improve our NFT Weekly Recaps.
As always, please DYOR on the projects mentioned in the report.
Best of luck!
