Try Quests to earn SOLThe Great Solana Royalty Debate
What is Solana?
Created by Anatoly Yakovenko, Solana operates on a decentralized computer network using a ledger called a blockchain. This blockchain database manages and tracks the currency, and effectively records every transaction that's ever occurred in it, like a long-running receipt.
What are NFTs?
A non-fungible token is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership.
what are royalties in NFTs?
NFT royalties are payments that compensate original NFT creators for the use of their non-fungible tokens (NFTs). In business, royalties generally pay the creator a percentage of sales or profits. With NFTs, royalties are usually set by the owner during the minting process.
Methodology
In this dashboard we are looking to answer the following questions:
- What projects have been more reliant on NFT royalties than others?
- What collections were wallets pivoting towards using 0% royalties more frequently?
- Are flowing royalties a sign of project health and sustainability?
- How much volume from 0% royalty sales can be accounted for by wash trading rather than actual user interest?
- How does of Rising of 0% royalty market behavior on Solana Compare to Ethereum?
Data
The data for this dashboard will come from the solana.core and ethereum.core tables of Flipside’s database.
Sections
- Top Collections by Mint/Royalty Revenue
- Sales Activity by Collection Type
- Market activity by Fee Type
- Top Collections by Marketplace Type
- 0% Marketplace wash sale activity
- NFT Sales activity by Marketplace
Top Collections by Mint/Royalty Revenue
Observations
- Starting in March 2022 royalty reliant collections started to have much more sales than mint-reliant collections
- Since the start of mid-2021, the price and volume of the top NFTs that are reliant on royalties have been greater than one relying on mint funds
- The median price of an NFT collection that relies on royalties is ~4x the price of ones that rely on mints funds
Market activity by Fee Type
Sales Activity by Collection Type
Observations
- Between the start of 2022 0% of marketplaces have gone from making up 7% of sola NFT activity to 98% of the activity in terms of volume and sales
- Since mid-September NFTs on 0% marketplaces, the median NFT has become more expensive
- In mid-February 2022 there was a massive drop-off in NFT with royalty sales activity
Top Collections by Marketplace Type
0% Marketplace wash sale activity
NFT Sales activity by Marketplace
Conclusion
- What projects have been more reliant on NFT royalties than others?
- Degens, Okay bears, and Degods have been some of the most reliant collections of Royalties and are some of the most popular collections on Solana.
- What collections were wallets pivoting towards using 0% royalties more frequently?
- The 2 top collections on 0% marketplaces are Degen Apes and Aurory both with over 1 Million SOL in volume
- Are flowing royalties a sign of project health and sustainability?
- Starting in March 2022 royalty reliant collections started to have much more sales than mint-reliant collections
- Since the start of mid-2021, the price and volume of the top NFTs that are reliant on royalties have been greater than one relying on mint funds
- The median price of an NFT collection that relies on royalties is ~4x the price of ones that rely on mints funds
- How much volume from 0% royalty sales can be accounted for by wash trading rather than actual user interest?
- Between 1% and 7% of the users on 0% Marketplaces, each day are wash-selling transactions.
- Since the start of August, there has been a very large increase in wash sales activity on 0% Marketplaces.
- How does of Rising of 0% royalty market behavior on Solana Compare to Ethereum?
- Overall the majority of NFT sales volume and activity on Ethereum is mostly on Opensea royalty marketplace
- Since the start of 2022 there has been an increase in the activity of 0% marketplaces on Ethereum, Opensea still is the largest player
- Between the start of 2022 and now 0% of marketplaces have gone from making up 7% of sola NFT activity to 98% of the activity in terms of volume and sales