Chain analysis: what are the advantages of an NFT policy?

According to a new report from research firm Chainalysis, the non-fungible token (NFT) market has reached $ 27 billion this year, making it a significant share of the cryptocurrency market. The report also shows that the most successful digital and other authors are all different in their writing ideas.

NFT was selected this year as "Lord of the Year" by Chegi (Greece G), who is considered "Lord of the Year" in the Collins Dictionary this year. Along with the NFT, the "Lord of the Year" elections include Pandamic, Concerned about the weather and Metaverse.

Now when people talk about NFT, digital artist Beeple mentioned Christie's art auction for $ 69 million in the first half of this year. However, NFT applications have gone beyond digital printing and the art of drawing, and flourished in everything from music to games and virtual homes.

With the emergence of the concept of global meta, weight has been placed on the popular NFT market, and ETFs, which are frequently invested in listed companies in the NFT arena, have also been listed and traded. , allows more investors to understand and access this. responnse. .

OpenSea, the most popular NFT software industry, will receive more than $ 16 billion in crypto in 2021 (according to Chainalysis). The best editors working on OpenSea obviously have clear and up-to-date information. This article provides important information from the Chainalysis report to understand the preferences of NFT authors in OpenSea.

Only entrepreneurs control the business model of NFT

As with most financial markets, cryptocurrency companies are the most important player in the entire cryptocurrency market. However, NFTs are unique, and money launderers selling less than $ 10,000 in cryptocurrency are particularly the most common traders.

According to Chainalysis data, of all NFT markets, the retail market accounts for 81% of the NFT market. As the demand for theaters and chaebols increased in the NFT market, the percentage of NFT collectors (market of $ 10,000 and under $ 100,000) increased from 6% in March to 19% in September. - The market value has become higher and the NFTs are slowly removing the label from "Speculator's Selfish Game". However, the NFT companies (over $ 100,000 in the packaging industry) remain, accounting for less than 1% of the total market share.

Distribution diagram dividing the number of trades in the NFT industry by the volume swaps

In NFT packaging industry statistics, NFT manufacturers and companies account for the majority of the total product market. Among them, NFT backers accounted for the largest share of 63%, and although the frequency of change at this level is less than that of the trader, the total income is or more. . In these data, NFT companies are in second place with 26%. Retail sales volume was the lowest, accounting for only 11% of the total market size.

Percentage of NFT Investor Volumes at Different Levels of Activity

The two statistics above show that, from a macro perspective, all retail stores are small, but there are a lot of backorders. It also indicates that the NFT market is still under investigation, its future direction is still uncertain, and investors still have a wait-and-see attitude.

What are the advantages of NFT integrated products?

NFT innovations in arts, sports and industrial culture began to emerge. But on the other hand, the most obvious reason why the NFT industry, like other fast growing industries, is attractive is not the desire to change the world with NFTs, but the high efficiency of NFTs. short term.

But can every investor be affected in today's new business? The answer is really no. But we also see some differences between the most profitable entrepreneurs.

Not what people want. According to OpenSea data, when NFT investors enter the market during the casting phase, only 28.5% of clients can benefit from selling NFT, but they can buy NFT directly from NFT. 65% of investors who switch their business to second hand can get results.

In addition to the different returns on investment due to time constraints, the following is based on data from Chainalysis which advises investors on the most effective NFT strategies. New companies are used to increase their returns.

NFT first market quality analysis

Joining giveaways is the key to the benefits of investing in new NFT businesses.

What is a free application? Time unknown to NFT investors. Once we have reviewed all completed NFT projects, we will receive support from the Discord community or Twitter for stakeholders interested in project planning or project planning. Whitelisted project staff deserve participants as gifts based on participants' interests. Participants in the free list can buy (buy) NFTs at low cost and be the first investors in this NFT project.

According to OpenSea data, 75.7% of free registered users can benefit from it after the NFT sale, while only 20.8% of free users can make money from it. Obviously, just like the financial services industry, investors who can enter the market at the start of a project will make a profit after exiting. The beginnings of an existing financial industry are measured by capital or capital resources, and the TVN industry is measured only by community engagement.

In terms of high ROI (multiple returns), 78% of non-free list marketers lost money on sales, and almost 59% lost more than half. . Freelance writers will typically get a good return, 40% with four times their ROI.

Big resale after NFT casting of whitelisted, not whitelisted investors

Gas consumption due to failure of NFT casting leads to deterioration of profitability

From the results discussed above, if the NFT income is equal to the difference between the bid price and the asking price. Entrepreneurs who enter the market from the first company, for example the foundry process, often will not be better than the second company. Indeed, the success rate of the main enterprise is 28.5% and the success rate of the secondary enterprise is 20%. 65.1%. The reason for this discrepancy may be due to the exchange rates used by many underperforming industries.

Under what circumstances will it not be finished but will still have to pay a replacement fee? When NFT operations were popular during the broadcast phase, thousands of users competed to broadcast NFTs at the same time, and due to the network connectivity that occurred during this time, a failure occurred. after many people send exchange rates. Additionally, research shows that consumers familiar with NFT are often unaware of the tradeoffs when using robots for NFTs. This will force the robot to resubmit the change request if the change does not work.

At worst, the robot will continue to trade but fail, losing millions of dollars in exchange fees. While the exchange rate of these unfinished transactions is still included in the total NFT return, the average return of major market players may be lower than the average return of other NFT providers.

In general, for NFT investors seeking to enter the market through casting, users who have not signed up for free will be less likely to benefit from the NFT process.

An analysis of the NFT secondary business strategy

Above we have shown the different investments that lead to different returns when NFT projects enter the market at the casting stage. Below is a comparison of how NFT traders benefit from these strategies in the secondary sector. Compared to sales of NFT in the first market, the risk of selling in the second market is more difficult.

Second business process

NFT industry concentration

As can be seen in the graph below, although the number of OpenSea NFT sales reached 2000, the sales of the first 250 NFT operations accounted for 80% of the sales of the second product, or 10% of the labor. 80% of sales Well, the industry is very concentrated.

If the NFT industry is to enter the industry maturity phase, it will face very different challenges and less stressful markets. However, the NFT market is currently in the research stage, and investors have yet to prepare the decision-making process for it, so most of the investors have followed these guidelines, so the head benefits are real. In the future, as the NFT industry grows, it may become similar to the luxury industry and art industry, as well as product and customer value. Confidence is the most important challenge.

Focus on the resale of OpenSea's NFT project

Few of the NFT traders get most of the benefits.

In terms of market behavior, few people still make money, and NFT marketing is no exception. In the income statement below, 20% of OpenSea represents 80% of the NFT secondary packaging industry and 5% of users include 80% of second sale revenue. Although the NFT industry is still in its infancy, it can be concluded that the head spin has already been established. The remaining 95% of users are still competing for 20% of the revenue.

Comparison of NFT Resale Concentration and NFT Resale Profit Concentration

Overall, the NFT market is on the rise, with more and more tasks and strong competition, but it is believed that the industry can eliminate the process to make the most of the work in future improvements. Everyone in an age of high risk and high efficiency, NFT investors need a bigger investment strategy to meet the growing needs of NFT.

Comparison of investment preferences in the secondary market

In addition to showcasing NFT mid-markets, Chainalysis's research brought together over 23,000 OpenSea funds. Group events are the return value for each NFT resale. In the next column, group 1 is the best performing NFT group and group 5 is the best performing group. It is true that the correlation of ROI levels for group 2-55 decreased from 1.9 to 0.9. Group 1 is higher than the other groups. When NFTs change hands, group 1 can get an average return on investment of 2.9x, which is 1x higher than group 2. The average return on all sales of group 5 is 0.9, lost . As a joke, you can call Group 5 "known group".

Statistics show the average return on investment for each group

Resale ratio and diversification

Today, in the first NFT market, all the work is done in the environment of the angels. With the exception of a few projects like BAYC, which have carried out a few operations, the rest of the cost of the project depends largely on the use of the meta edge. These new business procedures are difficult to identify with the usual costs involved. Therefore, when looking at the resale ratio of each group of NFT investors, the return to sales ratio is not higher than that of the other group. This means that after everyone has placed an order, the probability of completing the search for the next order is approximately equal.

NFT completion rate (pass rate)

The slight reversal of the High Yield group may also be related to the average frequency of transactions in Group 1. In research data, the average NFT transactions in Group 1 is 105. This is at least double the group. 2 and group 2 is 39. Groups 4 and 5 are less than 25, per month of group 1.

Number of NFT products

High-end consumers have switched to small groups several times, but prefer to place their eggs in different baskets. The average number of NFT (Unique) companies invested by investors in group 1 was 28, and in groups 5 and 4 less than 10. The number of NFT projects invested by the group and the results of completion of the investment indicate a good relationship. Different NFT resource strategies can reduce the risk of adverse effects.

Number of NFT participants from different groups

The attractive investment in a high yield account is stable

Comparing the highest trading decisions made by any NFT trader in the past shows that in addition to the overall Group 5 loss, Group 1 is the most profitable group and the highest decisions have the highest returns. weaker. Return of each group. Combined with the content analysis data, it can be seen that the larger the benefit group, the lower the perception of eating well and small benefits. You can get many refunds and the difference is minimal. Conversely, lower income teams will all benefit more from their more efficient operations.

Review of Average Yield of Most Successful NFT Trade Orders

High income groups also have high operating costs.

The better the group, the higher the average DTV rate. The average NFT rate for group 4 is 0.375 ETH, while the average value for group 1 is 1.07 ETH. It is also a warning that the early stages were heavily mixed in NFT investments. Don't buy blind because it's cheap. Otherwise, it will increase or decrease.

The average price of NFT will be

The best NFT providers are also “rich” Defi users.

According to Chainalysis statistics, the first place in the portfolio of Group 1 NFT investors is counted and more than half of the original capital is associated with Defi. The report shows that the commercial contract with Defi represents 34.1% of the group's main investments. In addition, 9% of loan agreements and 14.8% of smart token contracts are also associated with the use of Defi. Most of the money in a regular wallet is valued through barter exchanges.

Chainaylsis also compared the average of all trades in medium to long term trading. Therefore, the average exchange rate is $ 12,431 and the average exchange rate is $ 26,520. Obviously, users of decentralized exchanges often have a relatively high investment and sufficient funds. Thus, members of this group are more confident when NFTs have more money to invest in mature NFT businesses.

Source Statistics for Tier 1 NFT Investment Funds

last letter

The Chainalysis report concludes that while NFTs are the most popular virtual currency market products this year, they are the right choice for investors who want to start investing in a meta-universe or virtual currency market. , participants in NFTs should understand all of NFT activity. would be like. .

The report explains that both the demand for NFT operations and the demand from potential investors are high, indicating that there are still some NFTs that can benefit from competition in the NFT market. Participants must be appropriate and attentive to minimize their losses. investments.

Investors entering the NFT secondary market are more likely to be successful than the primary market if they need enough money. Users entering key businesses need to invest more to support the community to get a better way to earn money by joining freebies instead of earning more NFT on the robot. Otherwise, you can use cheaper conversion rates. . Investors in secondary markets should develop a reasonable investment portfolio rather than a profitable and diversified investment and risk reduction. Be careful not to blindly buy cheap and look for returns too much.