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Which platform is the king of NFT royalties?
NFTs have been a real blessing for artists and collectors alike. They provide creators with a global platform to depict and sell their work. On the other hand, blockchain technology allows buyers to instantly verify their ownership and the authenticity of an artwork.
perhaps the most significant benefit for artists comes in the form of NFT royalties. This feature allows artists to earn a passive income on the subsequent sales of their work, something that’s seldom possible in the real world.
In this analysis, I will examine royalty in ethereum. In fact, the goal is to find out which platform in ethereum had the highest royalty. In addition, we look at which projects have the most royalties. But before anything, let's go to what is called royalty?
The traditional means of producing and selling art would never allow the artists to benefit from secondary sales. In contrast, web3 aims at paying the artists in an ongoing manner. Whenever an NFT is sold, the creator gets a certain percentage of the sale amount, known as a royalty.
Creators can fix a royalty in the smart contract during the minting of the NFT. Usually, the royalties vary from 5 percent to 10 percent, and the amount is automatically sent to the artist’s wallet once a subsequent sale is executed.
While artists enjoy perpetual re-sale payouts, traders may not. They have to fork out the royalty over and above the sale price. Since NFTs demand thousands, sometimes millions of dollars these days, this royalty fee can add up to a significant amount.
All the required information is obtained from the ethereum.core.ez_nft_sales table, which is related to the sale of NFTs. In this table, there was a column called creator_fee_usd, which specifies how much was allocated to the main producer of the work from this transaction.
Because I will check the royalty on 4 platforms 'looksrare', 'opensea', 'rarible', 'x2y2', before that, it is better to take a look at the sale of NFTs on these 4 platforms.
In general, since the beginning, the total value of buying and selling NFTs in ethereum has been close to 67.5B USD, almost half of the total volume of buying and selling NFTs worth close to 33.7458B USD has been done in opensea. 40.2% of sales were made on looksrare, 5.24% on x2y2, 0.43% on rarible and 4.1% on other platforms.
Also, the highest fee paid to each platform is opensea with nearly 825.3 USD, which is approximately 59.1% of the total fee paid to the platforms.
As seen, most NFTs were sold in opensea. Now that we have checked the sales situation on the platforms, we will go to the royalty. The total royalty on the ethereum network has been close to 1.8B USD. The highest recorded creator fee for a single transaction was 1.225M USD. On average, it can be said that 71.2 USD was paid to the producer of that work for each transaction.
As expected, the highest royalty by a large margin is related to opensea. The total royalty in opensea was 1.74B USD, which accounted for 96.3% of the total royalty. After that looksrare, rarible and x2y2 are in second to fourth place with 52.4M USD (2.91%), 8.03M USD (0.445%) and 5.85M USD (5.85%) respectively.
The monthly chart also shows that in all months, opensea was at the top of royalty.
The charts below show the top 10 projects that have the most royalties. As it is known, the Art Blocks project has the highest royalty with nearly 93.92M USD. Although Art Blocks had the highest royalty, it only took 6.1% of the total royalty.
The "Top 10 Projects by Royalty Per Platform" chart shows the top 10 projects by each platform. art blocks in opensea, boredapeyachtclub in looksrare, rarible nfts in rarible and azuki in x2y2 have the most royalty.
The highest royalty earned from each sale on each platform is also shown. The highest royalty earned in a single transaction was 1.22M USD on looksrare. In opensea, rarible and x2y2, respectively, 518.1K USD, 31.178K USD and 16.284K USD were the highest royalties obtained from one transaction.