I crunched the data on 100 of the best selling NFTs of the NiftyGateway secondary market to see what kind of art produced the highest return on investment for collectors. Here are 10 key insights I found 👇
[1/10] Median return on investment for NFTs in the secondary market top 100 was 158%. If you had bought the initial drop of one of the top 100 and resold it today, you would 2.6X your money on the median.
[2/10] The most popular medium amongst the top 100 was animated 3D which represented 31% of the sample group.
[3/10] The number of editions minted on the initial drop was inversely proportional to the appreciation in the value of the NFT on the secondary market.
[4/10] The no of editions minted on the drop was directly proportional to the Gross Sales (primary + secondary sales) of the NFT.
This indicates that when selecting the size of a drop, there is a trade-off between the value created for the collector (who will have a higher ROI the more the piece appreciates) and that created for the artist (higher revenue and royalties the more gross sales occur).
[5/10] The artist’s total Twitter + Instagram audience was not strongly correlated with Gross Sales or secondary market appreciation in value. Analysing the Twitter and Instagram audiences separately yielded similar results. The median total audience was 181.6k.
[6/10] The average initial price of a secondary market top 100 was $640.
[7/10] The top 100 NFT with highest gross sales was FACES by @3LAU and @grimemonday at $3.7M ($1.6M in sales at the drop and $2.1M in sales on the secondary market).
[8/10] The NFT with the highest appreciation in value was POLITICS IS BULLSHIT by @beeple, which climbed from $1.00 at the drop to a current average resale value of $12.3k.
[9/10] The pieces in the secondary market top 100 had a total Gross Sales of $80M.
[10/10] The creator with the most NFTs in the secondary market top 100 was @fewocious, with 7 NFTs in the rankings, followed closely by @grimemonday with 5 (including his collaborations with @3LAU as @SSX3LAU), and a tie between @OGesports and @goldweard who had 4 each.
(1) For pieces that were collabs I used the sum of the collaborating artists’ audience.
(2) I set the axes of the scatter charts to exclude huge outliers such as the appreciation on POLITICS IS BULLSHIT so that the trends would be more visible.
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