NFT Royalty Comparison

    Introduction

    • In this Analysis, You will read about NFT Royalty on three popular NFT marketplaces on Ethereum. Opensea, Looksrare and Rarible.
    • I went through these marketplaces and analyzed these parameters:
    • Total and Avg Creator Fees
    • Total and Avg Platform Fees
    • Total and Avg Sales Volume
    • Top NFT Collection Based on Creator Fees
    • Top NFT collection based on Creator Fees per Market

    What is NFT Royalty?

    Creators can fix a royalty in the smart contract during the minting of the NFT. Usually, the royalties vary from 5 per cent to 10 per cent, and the amount is automatically sent to the artist's wallet once a subsequent sale is executed.

    Analyzed By Hess - Reading Time Almost 8 Min.

    Method

    • The Method was simple. We already have the NFT sales table. We also have Platform Fees, NFT sales prices, and Creator Fees in that table. I used those parameters and drew some charts from them.
    • As I mentioned in the introduction, The royalties vary from 5-10 Percent. In order to extract the Royalty percentage, I divided Creator_fees into Sales volume and then multiple by 100. Now We can royalty percentage too.
    • I eliminate other marketplaces to see only Opensea, Rarible and Looksrare.
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    Sales and Volume

    • Opensea is one of the most popular NFT marketplaces in the Crypto world. As you can see the daily sales volume on Opensea was much higher than the Rarible and Looksrare. It is true that the average sales volume on Looksrare was higher than the Opensea but overall, More NFT sold on Opensea.
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    Top NFT collections based on Creator Fees and Platform Fees

    • Among all collections on All platforms, Looksrare earned the highest fees from Demontorstownwtf and terraforms. After these two collections, Almost all other top collections were on Opensea.
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    A Summary of the most important findings

    • Opensea and Rarible had the highest fees percentage. Both of them are almost 2.5% But Looksare were 2%.
    • Overall, Opensea with more sales volume and number of sales earned more from NFTs. The second one was Looksrare and the third place was Rarible. The difference between Opensea with others is too much.
    • The average platform fees in USD on Looksrare were higher than the Opensea and Rarible.
    • The average Creator fees percentage on Rarible was almost 9.1%. The average creator fees percentage on Opensea was 7% and 6% on Looksrare. Because of more sales on Opensea, Creators earned more from Opensea with an average of 7% royalty.
    • The average creator fees in USD on Looksrare were higher than Opensea and Rarible. Almost 38$.
    • The sales volume on Opensea was 2.5x more than Looksrare. The third place is Rarible based on sales volume.
    • Almost all top Collections based on creator fees were from sales on Opensea.
    • BoredApe Collection was common in market places.

    Full Analysis

    Platform and Creator Fees

    • First, let’s take a look at platform fees and then Creator fees. In the last 3 months, Opensea earned more fees from NFT sales. However, The average daily fees on Looksrare were much higher than the Opensea.
    • After Opensea, Looksrare earned more fees in USD. Rarible earning wasn’t too much at all. All three platforms earnings decreased in the last 3 months.
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    • Maybe you know that Opensea announced their Percentage is always 2.5%. As you can see their fees were always around 2.5%. Also, Looksrare keeps its percentage all time. But Rarible had a variable percentage. However, the average on Rarible is around 2.5%. Lastly, The average fees on Rarible decreased to 2-2.2%.

    Now, It’s time to focus on the main part of this bounty which is Creator royalty fees. Creators earned many fees on Opensea in comparison to Rarible and Looksrare. The average earnings on Looksrare was higher than the others. Due to the NFT sales bear market, The creators earnings decreased over time.

    • NFT creators can set royalties from their Collections. As you can see the average royalty percentage on Rarible was higher than Opensea and Looksrare. In the last 90 days, the creator fees percentage on Rarible was 9%, On Opensea 7% and on Looksrare 6%. However, Based on daily sales, The average Percentage changed. The highest Fee percentage was on Rarible in September which was 22%!

    Total Platform Fees in USD per Platform

    Total Creator Fees in USD per Platform

    • As you can see, Almost all top platforms based on creator fees were on Opensea. It means creators earned the most from their collection on Opensea. There were only one collection that creators earned on Opensea and Looksrare which was The Otherside collection.

    Top Collections per Creator Fees per Platform

    Conclusion

    • So far, We already know that creators set their royalties. The royalties can impact a collection. On one side, Creators like to increase their royalties but on the other side, they don’t want those royalties to impact Sales. So They set a normal and average royalty which is 5-10%. Some creators prefer to don’t get any royalties for their collections.
    • Creators don’t have any limitations for listing their NFTs on a specific marketplace. So their NFTs are available on all markets. Due to the highest sales on Opensea, Creators earned the most from Opensea.

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :t-rex: Discord: hess#0890

    :calendar: Analyze Date: 2022/OCT/07