The battle of NFT marketplace.

In this article, we compare the top NFT marketplace on 3 different chains.

• OG - Ethereum’s Opensea
• Solana’s Magic eden
• Layer 2 - Optimism’s Quix

Key Takeaways

1. Opensea on ethereum has the least marketshare compared to magic eden on solana and quix. on optimism. magic eden and quix have completely dominated their chains in the recent months.
2. Magic eden has the highest number of NFTs sold, much higher than opensea since July 2022. , but the volume is only a fraction of that of opensea.
3. Opensea appears to be raking in money. It makes an average of 5 USD on every NFT sold while magic eden and quix make only a meager 0.6 USD on average.
4. The average NFT on an opensea market is atleast 2-4x costlier on opensea.
5. The primary payment method on opensea ( for erc-721 tokens) is ETH or WETH, which has reduced in price considerably compared to thee USD. Due to this, the average revenue earned per NFT transaction has also reduced meanwhile, this is not the case with magic eden. The marketplace did witness a spike due to the yoots drop but in general, the ARPT seems pretty consistent.
6. What is interesting though is that the new projects on magic eden seems comparable to that of new ones in opensea. magic eden’s ABC NFT has a volume of 14 M USD while the potatoz has 22 Million. The volume difference between magic eden and opensea appears to be lesser than before.
7. Optimism’s Quix appears to be the poor man’s Ethereum ? Well it should be, because of the exorbitant cost of gas and NFTs on ethereum. Almost 40% of the NFTs sold on Quix have a value less than 1 USD. and 65% less than 10 USD.

Objective

The objective of this bounty is to build a dashboard that gives an overview of the important parameters of 3 marketplaces. These metrics can be used to evaluate the performance of each marketplace and compare one against the other.

The metrics used are:

1. Market share in their respective chains
2. Average price per NFT, Average revenue per NFT
3. Volume of sales
4. New projects listed on each marketplace
5. Top NFTs (both old and new)
6. Types of NFTs sale

As this is a dashboard bounty, the amount of explanations used are restricted to bare minimum.

Methodology

The dashboard is divided into 7 sections. The 7 sections are

1. Market share

   We first look at the market share of each marketplace in their respective chains. We identify market share through the number of transactions processed by each marketplace.

2. Marketplace stats

   Here we provide the live statistics of each marketplace. We look at the number of NFTs sold, the sale amount in USD, the platform fee accumulated in the past months, the average price per NFT and lastly the average revenue generated for the marketplace.

3. Important trends.

   We briefly look at the trend of volume across different marketplace. Volume is in USD. Further, we look at The relation between volume of sales and the number of nfts sold. and finally the trend of ARPT.

4. Preference of new projects

   Where do the new projects list themselves ?.

5. Top NFT project

   We look at what the top NFT projects are on each marketplace based on volume. We split the analysis into two parts,

   1. looking at the volume of all NFTs (including those that launched before july 1)
   2. only considering NFTs launched after july 1

6. What kind of sales happen on different marketplace. Are all whale transactions occuring in opensea or is it equally split among marketplaces.

To segregate the sale type, we use the user type as

• when sale_amount < 1 and sale_amount > 0 then 'shrimp (0-1)'
• when sale_amount < 10 and sale_amount >= 1 then 'crab (1-10)'
• when sale_amount < 50 and sale_amount >= 10 then 'Octpus (10-50)'
• when sale_amount < 100 and sale_amount >= 50 then 'Fish (50-100)'
• when sale_amount < 500 and sale_amount >= 100 then 'Dolphins (100-500)'
• when sale_amount < 1000 and sale_amount >= 500 then ' Shark (500-1000)'
• when sale_amount < 5000 and sale_amount >= 1000 then ' Whale (1000-5000)'
• when sale_amount >= 5000 then 'Humpback whale (5000+)'

Dashboard and analysis

Section 1 : Market share

We first look at the market share of each marketplace in their respective chains. We find that opensea on ethereum has the least marketshare compared to magic eden and quix. There are a number of marketplaces on ethereum which is an indicator of a healthy ecosystem, whereas there is only one quix. This could because of the relatively new chain optimism.

On analyzing trend, we find that sudoswap gained a lot of traction in the month of August 2022, but wasn’t enough to threaten the dominance of opensea. However, the scenario is different in solana and optimism, as in both of these chains, magic eden and quix have completely dominated the market in the recent months.

Section 2 : Marketplace stats

Section 3 : Important trends

Section 4: preference of projects

Section 5: Top NFT projects

Section 6: Top new NFTs

Section 7: NFT sale type breakdown

Conclusion

1. Opensea on ethereum has the least marketshare compared to magic eden on solana and quix. on optimism. magic eden and quix have completely dominated their chains in the recent months.
2. Magic eden has the highest number of NFTs sold, much higher than opensea since July 2022. , but the volume is only a fraction of that of opensea.
3. Opensea appears to be raking in money. It makes an average of 5 USD on every NFT sold while magic eden and quix make only a meager 0.6 USD on average.
4. The average NFT on an opensea market is atleast 2-4x costlier on opensea.
5. The primary payment method on opensea ( for erc-721 tokens) is ETH or WETH, which has reduced in price considerably compared to thee USD. Due to this, the average revenue earned per NFT transaction has also reduced meanwhile, this is not the case with magic eden. The marketplace did witness a spike due to the yoots drop but in general, the ARPT seems pretty consistent.
6. What is interesting though is that the new projects on magic eden seems comparable to that of new ones in opensea. magic eden’s ABC NFT has a volume of 14 M USD while the potatoz has 22 Million. The volume difference between magic eden and opensea appears to be lesser than before.
7. Optimism’s Quix appears to be the poor man’s Ethereum ? Well it should be, because of the exorbitant cost of gas and NFTs on ethereum. Almost 40% of the NFTs sold on Quix have a value less than 1 USD. and 65% less than 10 USD.

Reference

Dashboard by rohoallah -

Note

1. All volumes and sales are in USD otherwise mentioned. This is to ease the comparison between protocols.
2. All the analysis and comments are based on the timeframe starting on July 2022. However, one can change the timeframe using the dropdown provided above.
3. As per the discord message, we need not evaluate the sales since start of new year, the message said that only july has to be considered.

INSIGHTS

1. Magic eden has the highest number of NFTs sold, much higher than opensea since July 2022. , but the volume is only a fraction of that of opensea.
2. Opensea appears to be raking in money. It makes an average of 5 USD on every NFT sold while magic eden and quix make only a meager 0.6 USD on average.
3. The average NFT on an opensea market is atleast 2-4x costlier on opensea.

INSIGHTS

The sales volume on opensea has been on an declining trend, mean while solana appears to be catching up. In the days after yoots launch, the volume processed by magic eden has increased. Quix on the other hand has had a fantastic last few weeks.

The primary payment method on opensea ( for erc-721 tokens) is ETH or WETH, which has reduced in price considerably compared to thee USD. Due to this, the average revenue earned per NFT transaction has also reduced meanwhile, this is not the case with magic eden. The marketplace did witness a spike due to the yoots drop but in general, the ARPT seems pretty consistent.

Even though Solana’s magic eden has been gaining ground . It still appears that new projects are more likely to list in opensea than on magic eden or quix.

INSIGHTS

The initial NFT projects on opensea still dominates the aftersales market. with bayc itself bringing in 60M USD of volume , Degods of magic eden makes up a volume of 18 M USD.

What is interesting though is that the new projects on magic eden seems comparable to that of new ones in opensea. magic eden’s ABC NFT has a volume of 14 M USD while the potatoz has 22 Million. The volume difference between magic eden and opensea appears to be lesser than before.

Optimism’s Quix appears to be the poor man’s Ethereum ? Well it should be, because of the exorbitant cost of gas and NFTs on ethereum. Almost 40% of the NFTs sold on Quix have a value less than 1 USD. and 76% less than 10 USD.

Meanwhile, most trades on opensea and magic eden are of values between 1-50 USD.

Glossary

ARPT - Average revenue per transaction.

Volume - Total amount of USD involved in trade.

New projects - Projects with the first mint date after the specified time ( july 2022 in our initial case)