Stats since 22 September 2022

For better comparison, In this section, we can see metrics for marketplaces after 22 September 2022 (beginning of HadeSwap)

• Considering that Hadeswap is new to the market, it has little market share.
• Hadeswap average spent by purchaser is 216% higher that Magic Eden's.

Wash Trades Portion

Most washed Collections on hadeswap

• We can see that before hadeswap, MagicEden had the highest wash trading portion of markets. But after Hadeswap emerged, its high wash trading volume caused dominance in wash trading volume in the Solana NFT marketplaces.
• From September 2022, we see increase in the volume of wash trading volume, after October 14th, we can see another spike in the wash trading volume.
• We can see increasing trend in wash trading in Hadeswap in the past month.

• The result of this section is inaccurate because only 20% of transactions on hadeswap have NFT collection labels.
• The chart shows that 25% of Catalina whale mixer collection transactions are wash trading transactions.

Wash Traders on Hadeswap

Total Stats

Introduction

What is Hadeswap?

A new sector of NFT marketplaces have begun to gain popularity on Solana, the NFT AMM. One of the most notable NFT AMMs on Solana so far is Hadeswap.

At the core, it's an Automated Market Maker (AMM) NFT marketplace that improves NFT liquidity and its trading experience.

It enables users to trade and swap NFTs using liquidity pools, exactly like you would trade and swap cryptocurrencies using Uniswap. Some of the key features of hadeswap are:

• 0% platform fees from the start - to be converted into 0.5% platform fees [to be 100% dedicated from day 1 to ABC NFT holders]
• 0% royalty fees per default but you have the possibility to pay them if you wish to do so [not active in lite beta version]
• Progressive selling/buying of NFTs
• Earn SOL

In this dashboard, we want to find out how much of it is real trading and how much is 'wash trading' to drive up volume numbers considering that there are no fees in the marketplace so it can be easy to swap back and forth.

What is wash trading?

Wash trading is a form of market manipulation where an investor simultaneously sells and buys the same financial instruments to create misleading, artificial activity in the marketplace. 

In terms of NFTs, wash trading occurs when the same user is behind both sides of an NFT transaction. It means that both the seller and buyer address is actually owned by the same person. At the moment, wash trading is very common in NFT markets, which are not subject to government regulation or supervision, unlike traditional securities. 

Daily trends of wash trading transactions

Methodology

• To identify wash trading transactions, two types of wash trading were defined:
  • Type I: If a trader buys a specific NFT more than once, all transactions of that buyer with that specific NFT are considered as wash trading transactions.
  • Type II: The transaction is considered as wash trading if the sale price of the transaction is
    • 5 times higher than the minimum of the sales price of the collection on the transaction day, and
    • 5 times higher than the average of past 100 sales transactions
• All NFT sales data were extracted from solana.core.fact_nft_sales table.
• SOL prices were extracted from ethereum.core.fact_hourly_token_prices table by daily averaging of hourly prices of SOL token on Ethereum.
• The Average Metrics used in this dashboard:
  • Average Sales Amount: This shows the average amount of SOL paid for each sale transaction
  • Average Sales Amount: This shows the USD value of the average amount of SOL paid for each sale transaction
  • Average Spent by Purchasers: This shows the average amount of SOL each purchaser paid to buy NFT
  • Average Amount spent by each purchaser (USD): This shows the USD value of the average amount of SOL each purchaser paid to buy NFT
  • Average sales per purchaser: This shows the average number of sale transactions each buyer had.

Only 20% of transactions on Hadeswap had collection label. So, Wash trading type II is not accurate and we will focus on wash trading type I in this dashboard

• Hadeswap had 1.16% of sales number of markets while it had 5.27% of sales volume of markets.
• Daily paid amount per buyer decreased in Hadeswap after its peak on 27th of September but it was always higher than Magic Eden's.
• Average sales amount per transaction in Hadeswap is higher than in Magic Eden and other marketplaces.
• Average purchases per buyers in Hadeswap and Magic Eden were almost equal in recent days.
• The average metrics shows clearly that buyers on Hadeswap had more transactions and spent more than Magic Eden and also other marketplaces' buyers.
• We can conclude that in Hadeswap, buyers are more active and also spent higher.

• 47.5% of transactions on Hadeswap were labeled as Wash trade Type I, while 13.1% of transactions on Magic Eden were labeled as Wash trade Type I. other marketplaces only had 1.2% of this type of wash trading.
• 47.2% of sales volume on Hadeswap is wash trade (type I), while 6.6% of Magic Eden's sale volume and only 1.1% of other marketplaces is wash trade.
• Type II wash trades shows little portion, this is because incomplete NFT labels in database, so we will focus on wash trade type I.

• 48.8% of traders on hadeswap have done at least 2 wash trading transactions. This is a very high amount for a marketplace while on Magic Eden 4% of traders have done wash trading transactions and on other marketplaces, only 2% of traders have done wash trading transactions.
• Trader 6iFLGgL19gWS2sxNZTRY9jVJnrmC8P7TfhGc5PTAZRiu washed 10,657 SOL by 405 transactions on Hadeswap.
• Trader 4qqno9nF3ZGXvrefRhvuSruBuqNMLDz6TtTaEkrrLFCu made 5141 wash trading transactions and washed 736 SOL.

Summary

• The average sales amount per transaction in Hadeswap is higher than in Magic Eden and other marketplaces.

• The average metrics show clearly that buyers on Hadeswap had more transactions and spent more than Magic Eden and also other marketplaces' buyers.

• In Hadeswap, buyers are more active and also spent higher.

• 47.5% of transactions on Hadeswap were labeled as Wash trade Type I, while 13.1% of transactions on Magic Eden were labeled as Wash trade Type I. other marketplaces only had 1.2% of this type of wash trading.

• 47.2% of sales volume on Hadeswap is wash trade (type I), while 6.6% of Magic Eden's sale volume and only 1.1% of other marketplaces is wash trade.

• Type II wash trades shows little portion, this is because incomplete NFT labels in database, so we will focus on wash trade type I.

• From September 2022, we see increase in the volume of wash trading volume, after October 14th, we can see another spike in the wash trading volume.

• We can see an increasing trend in wash trading in Hadeswap in the past month.

• 48.8% of traders on hadeswap have done at least 2 wash trading transactions. This is a very high amount for a marketplace while on Magic Eden 4% of traders have done wash trading transactions and on other marketplaces, only 2% of traders have done wash trading transactions.

• So, about 50% of transactions on hadeswap are wash trading transactions and only 50% of transactions on hadeswap is legit until now.

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