JPEG Midsummer: Exploring the data behind the NFT boom

In the past two weeks, NFT transaction volume has exploded, far exceeding the small NFT boom in March this year.

Last week, OpenSea , the largest NFT trading market, reached a peak of 60,000 transactions per day , 8 times the peak period in March this year. Before the end of August, OpenSea’s transaction volume has exceeded 1 billion U.S. dollars, and the number of independent buyers per day has also reached a record high. 

JPEG Midsummer: Exploring the data behind the NFT boom

In fact, there were already some signs at the end of July that heralded this wave of frenzy.

On July 30, an anonymous player bought 104 CryptoPunks in the same block for $7 million He selectively selected 104 of the cheapest Punks on the market, which directly increased the floor price (“floor price” refers to the lowest price for obtaining a collectible NFT).

In response, the buyer explained that he regards CryptoPunks as a long-term value store tool and uses these low-priced Punks as part of a strategy for optimizing liquidity and diversification.

JPEG Midsummer: Exploring the data behind the NFT boom

The buyer also used the MiningDAO protocol to package all 104 transactions directly to the miners, which means that unless the transaction has been added to a block, these transactions do not need to be broadcast to the entire network, which prevents other sellers from After seeing this sale, it raises the price.

Before this “sweeping”, the average price of CryptoPunk was about 60,000 US dollars (the previous 500 transactions), and since the “sweeping”, the average price of CryptoPunk has increased to nearly 200,000 US dollars.

JPEG Midsummer: Exploring the data behind the NFT boom

In August, the trading volume of CryptoPunks began to soar. In addition to Punk, there are also a large number of NFT projects based on animals occupying social media avatars.

JPEG Midsummer: Exploring the data behind the NFT boom

When Bored Ape Yacht Club (BAYC, Bored Ape) announced that it would be unveiled at Christie’s auction, its trading volume began to skyrocket. Since then, BAYC’s trading volume has reached several million dollars, and the floor price has risen to 15 ETH .

In addition to BAYC, the popularity of other avatar NFTs is also rising on OpenSea. After the Twitter battle with BAYC , the trading volume of Pudgy Penguins soared, surpassing $13.5 million on August 13.

At the same time that CryptoPunks was being scrambled, Singapore’s hedge fund Three Arrows Capital also began to acquire NFTs frantically. In the past two weeks, this company has spent thousands of ETH to buy a large number of NFTs, mainly on Art Blocks and CryptoPunks.

Art Blocks is a generative art platform that has launched popular projects such as Ringers, Chromie Squiggles, and Fidenzas. With the entry of Three Arrows Capital, the Art Blocks market started explosive growth. There are probably dozens of items with different prices, but the average selling price reached its peak on August 10, exceeding $29,500.

JPEG Midsummer: Exploring the data behind the NFT boom

On August 9, the two NFTs of the Ringers series were sold for 400 ETH and 370 ETH, which are the two highest-priced NFTs in the series so far. On August 14, Chromie Squiggle was sold for 750 ETH (approximately US$2.4 million).

At the same time, the encrypted art market began to recover. SuperRare is one of them, and its trading volume is back to the high point of March this year. On August 3, one of the earliest artists on SuperRare, XCOPY’s “summer.jpg” work, was sold for 336 ETH (approximately US$830,000).

The small NFT boom in March this year attracted a lot of media attention. On March 11, Beeple sold a sky-high price of US$69 million, and this incident was widely reported. However, the mainstream media attention caused by the current wave of NFT boom is not as high as before, at least so far. In hindsight, the Beeple sold for $69 million marked the culmination of March’s prosperity.

In addition to the sale of Beeple, the price of ETH began to rise in mid-March and reached a record high of $4,100 in April. When the price of ETH exceeded $4,000, NFT sales dropped suddenly. Wait until ETH continues to fall, and NFT trading volume begins to take off again.

This shows to some extent the relationship between the NFT market and the price of ETH.

NFTs are usually priced in ETH, so if the price of ETH suddenly rises, the novice will be squeezed out of the game by the high price. For example, an NFT with a price of 2 ETH may suddenly rise from $3,000 to $6,000, which is too expensive for potential buyers who do not have ETH and need to use fiat currency to enter the crypto market.

Therefore, there is some mutual determinism between the NFT market and the ETH price. People buy ETH to buy NFTs, sell NFTs in exchange for more ETH, and then reinvest ETH into more NFTs. High-value NFT sales have brought new attention to ETH, and more users have entered the Ethereum ecosystem.

During the NFT boom in March, NFT trading volume and the price of ETH rose almost simultaneously until the market slowed down due to oversupply. Now that NFT sales and ETH prices are rising simultaneously, it is hard to say that the two are not related.

It should be pointed out that although NFT volume has soared this summer, the number of global Google searches for “NFT” is still far below the peak in March. If NFT gets the attention of the outside world like earlier this year, then there will be greater prosperity in the future.

JPEG Midsummer: Exploring the data behind the NFT boom

Original: Coinmetrics | Compilation: Lizhi


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