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    Solana NFT Wash Trading

    NFT wash trading occurs when a trader buys and sells their own NFT repeatedly, resulting in inflated volume and apparent interest in the asset. The wash trader has control over both the buying and selling prices, allowing them to purchase the NFT from themselves at a higher price. This cycle can be repeated multiple times, leading outsiders to perceive increased activity and potentially prompting them to buy the NFT at an inflated price. Once an outsider purchases the NFT, the creator of the NFT gains a profit from the price difference.

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    What is Wash Trading?

    • Wash trading refers to an illegal activity in which a single trader buys and sells the same asset to create misleading market information. This practice is often employed to artificially inflate the trading volume of an asset or marketplace.

    NFT Wash Trading

    • NFT wash trading involves a trader buying and selling their own NFT to create a false impression of high volume and interest, leading to a potential price increase. The wash trader has control over both the buying and selling prices, allowing them to purchase the NFT from themselves at a higher price. This behavior can be repeated multiple times, giving the appearance of increased activity and enticing outsiders to consider buying the NFT at an inflated price. Once the NFT is sold to an outsider, the NFT creator profits from the price difference.
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    What Is LiveQuery?

    • LiveQuery is the largest Web3 data resource, aiming to solve the problem of fragmented crypto data across different platforms. LiveQuery allows users to access the APIs of various data and node providers, such as QuickNode, AlchemyPlatform, heliuslabs, and others, in a single query. It enables analysts and builders to combine datasets and gain unique insights not found elsewhere. Moreover, LiveQuery offers the flexibility to access any API, including sports, weather, stocks, polls, and more, by simply requesting it through the provided link. In summary, LiveQuery provides a comprehensive solution for accessing and combining crypto data to uncover previously unavailable insights Link.
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    What Is Helious?

    • Helious Solana RPC is a service that provides access to the Solana blockchain through remote procedure calls (RPCs). RPCs are a way of communicating with blockchains, such as reading data or writing transactions. Helious Solana RPC offers fast, reliable, and affordable RPC nodes that are optimized for performance and scalability. Helious Solana RPC also supports various features such as websockets, indexing, caching, and dedicated nodes Link.

    Methodology

    • This dashboard aims to explore NFT wash trading on the Solana network to assess the network's performance in this aspect. Wash trading is detrimental to both networks and collections, making it crucial to minimize such activities.

    • Furthermore, I seek to address the following questions:

    • Total number of transactions for each type
    • Total number of users for each type
    • Total sales volume for each type
    • Grouping marketplaces by their wash transactions
    • Grouping marketplaces by their wash volume
    • Identifying the top 10 users based on wash transactions
    • Identifying the top 10 users based on wash volume
    • And more.
    • Additionally, this is my first dashboard utilizing Livequery, a tool recently launched by Flipside. Some parts of this dashboard also integrate data from the Helius API.

    Summary

    • The Solana network has experienced a substantial number of wash trading transactions, accounting for approximately 6.5% of all NFT sales on the network. Around 96.5K users have engaged in NFT wash trading, resulting in a total wash trading volume of about 3.02 million SOL since the network's inception.

    • On average, the network witnesses about 2.3K wash trading transactions per day, and the overall trend of monthly wash trading transactions, users, and volume is declining, reflecting the broader NFT market on Solana.

    • Among all the marketplaces, Magic Eden V2 stands out with the highest number of wash trading transactions, users, and volume, totaling approximately 1.3 million transactions, 58.2K users, and 2.1 million SOL, respectively.

    • Most wash traders have only made a single transaction, while the majority of transactions involve amounts less than 5 Sol.

    • The collection "BABYShiba_Army_Club" holds the highest number of wash trading transactions on the Solana network, while "Fortune Cookies" records the highest wash trading volume.

    • Notably, specific users with addresses "2v3inkUm9ksx6kkAHnVj33LYyYK8UbiKcyiCd8XXNuh8" and "BCGSCD3Jw6SEzkBQH3vKGNSoPcfMZe3mS1m5AN8zRvzX" have the most significant number of wash trading transactions and volume, respectively. Interestingly, these users do not maintain any assets in their wallets, indicating their transient nature in conducting transactions.

    • Lastly, Fortune Cookies #1085 experiences the highest wash trading volume among all NFTs, indicating the most significant wash trading activity exclusively within this specific NFT.