INTRODUCTION

Every time an NFT is resold a small fee is taken by the original creator which is executed by smart contracts ensuring safety. Standard fees range between 5-10%. That’s the ROYALTY.

Most people believe that art value is subjective to the buyer so this way the artist get rewarded for the value an art piece is sold even if it is not in his possession anymore.

As not all NFTs are art pieces not all NFTs have royalties.

In this dashboard we’ll review the three biggest NFT marketplaces: Opensea, Looksrare, X2Y2 and compare them on 2022 data.

Data Sources: Data were taken by Flipside’s ==Ethereum.core.ez_nft_sales== table.

Here we see that Opensea has the most Royalties this year at 1.04B USD representing 94.7% share. Looksrare has 52.3M USD and x2y2 has only 5.8M USD.

Opensea totally dominates the markets.

When we see the daily royalties earned on the 3 exchanges we see a significant decline after May to pretty low levels from >5M daily to 1M daily.

Above we see that Opensea had 18.7M NFT sales in 2022, x2y2 1.33M and loksrare 320k.

The daily volume of sales is generally stable from 60k-80k, although the $ royalties are declined which is the result of lower token prices and lower NFT prices.

We also note that x2y2 has ~x4 the sale volume of looksrare but only approximately 10% of the total $ royalties showing us that $ royalties are much less on x2y2 than looksrare

Here we see that on all platforms the mean % fee ranges from 6% to 7.5%.

BUT the mean $ fee collected by the creator on Looksrare is 257$ 59$ on Opensea and25$ on x2y2,

showing that on Looksrare NFT are much more expensive.

This chart also proves the case we made above about Looksrare and x2y2.

Here we see that there 1.4M Users on Opensea in 2022 so far, 119.5k on x2y2 and 88.5k on Looksrare.

Also there are 30k NFT projects on Opensea 8k on x2y2 and 7.6k on Looksrare.

We see again the total domination of Opensea on all metrics.

CONCLUSION

• All the above data shows that a standard royalty rate 5-10% is OK with the users.
• Comparing x2y2 and Looksrare, since creators earn 10 times as much $ on Looksrare than on x2y2 while having similar fee %, a % fee reduction would be encouraged in order to increase user and project volume.
• Creators on Opensea have >1B $ in the first 3 quarters in 2022.
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