Analysis from the data on the chain: the story behind NFT

Compared with ERC-20Token, the unique properties of NFT assets make it difficult to visualize their liquidity and data. Even for a top project like BAYC, YugaLabs announced the acquisition of CrytpoPunks and Meebits and announced the issuance of ApeCoin. The floor price has increased from about 60ETH to nearly 100ETH, but the overall number of transactions is only a few dozen. The data The base is too small, so that many players cannot measure the trend of NFT projects through the ERC-20 data standard.

On the other hand, the cultural attributes inherited by NFT integrate the form of "Buidl" into the community. The activities of the community and the cohesion of members have become a necessary condition for the success of a project. Participating in the community has become a compulsory course for every player. It seems that the data of the NFT market has become invisible. Even quantifiable data often lags behind community activity and information.

So is the data of the NFT market really not that important?

This article discusses from the perspective of long-term NFT players and short-term NFT players, through visual market data to explore what laws we can see from it, how NFT players can use data to match market news, and make preliminary judgments on NFT projects.


short term activity index


As the NFT market has matured over the past year, the projects on the market have shown a trend of blooming. According to the Nansen NFT Index, nearly 1,600 NFT projects are released in different forms every day, which also means that players have already left a year ago. In the dilemma of "choose one of two", with more choices, short-term investment has also become the first choice for many NFT players.

Address monitoring of KOLs

Short-term investment, that is, trading in a short period of time by buying low and selling high. For ordinary players, it is the easiest way to make short-term investment. This is why NFT whales like Pranksy make waves every time they make a move.

Take Pranksy trading NFT RaidParty Fighters a few days ago as an example:

The data shows that 3 days ago, Pranksy was frequently trading the NFT project RaidParty Fighters, the purchase price was around 0.47ETH (it is not excluded that the Pranksy team purchased in advance with other accounts), and the overall transaction cost was around 0.5ETH.

We find the corresponding trading volume and average price for the day

Judging from the data, KOLs such as Pranksy have undoubtedly driven a large number of transactions in the secondary market, and the total transaction volume has peaked in a short period of time. Average prices are also at short-term troughs. The current floor price of RaidParty Fighters is around 0.9ETH, that is, players who catch a "free ride" through address monitoring are still profitable in the short term.

The market effect driven by KOL has made many players change their strategy from "fancy in the long-term value" to "running fast". Usually, in addition to the "free ride" of KOL, some anonymous users or Smart Money users create chains. The upside move can still create opportunities for short-term players.

New projects or projects with low floor prices are usually the targets of these users. Such projects are generally relatively niche or less well-known, and it is difficult to find through the information level. At this time, short-term on-chain changes will be the way for players to discover new projects.