According to OpenSea data, only 28.5% of NFTs (about 1 in 4) purchased during minting result in a profit. On the other hand, more than 65% of NFTs purchased by other users in secondary markets result in a profit. That shows a clear discrepancy in the market.
According to a report by blockchain analytics firm Chainalysis, NFTs are anything but a surefire investment. With only 1 in 4 NFTs making a profit after minting, it’s not too surprising.
However, the company noted that certain tactics can lead to more success and increase the odds of winning.
The analytics firm explained that one way NFT projects can do this is by whitelisting their engaged followers. For example, one can set up in a Discord server or Telegram channel for them. Or allow them to buy NFTs at a discount. In this way, followers promote the NFT on social media and market the yet-to-be-launched project for free.
The report goes on to say: “NFTs thrive primarily on community growth and word of mouth. If you look at a successful NFT project, you are likely to find Discord servers and Twitter threads full of enthusiasts promoting the project. This is by design.”
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NFTs are popular all over the world
According to Chainalysis, it is almost impossible for sellers to make profits if they are not whitelisted. This is because users who make it to the whitelist and later sell their newly minted NFTs make a profit 75.7% of the time. While for users who are not whitelisted, the figure is only 20.8%.
In addition, the company stated that NFT sales come from different regions. This indicates that the industry is now popular worldwide. Central and South Asia, North America, Western Europe, and Latin America lead the way, but none of these regions account for more than 40% of the market share.
Nearly 80% of NFT transactions occur at the retail level, meaning they are valued at less than $10,000. Recently, however, larger NFT transactions have become more commonplace. An NFT work by Ross Ulbricht currently has a high bid of 666 Ethereum (ETH), which is equivalent to $2.64 million. In addition, artist Beeple’s NFT recently fetched an impressive $28.9 million.
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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