Try Quests to earn cryptoNFT Royalty Comparison
Which platform is the king of NFT royalties?
What Are NFT Royalties?
Usually, royalties as we know it, pay the creator a percentage of sales. When it comes to NFTs, royalties pay the NFT creators for the use of their NFTs. Basically each time the NFT creation is sold, the original owner receives a percentage of the sale price. In the majority of the NFT marketplaces, the owner can choose their royalty percentage, \n The payments of these royalties are automatic and perpetual made by smart contracts. There are no intermediaries needed since these smart contracts are the ones in charge. Smart contracts are key for these transactions since they make sure there is no tampering in the process. They operate and execute tasks automatically, without the need for humans involved. Of course, the royalties must be written into the terms and then, the rest is taken care of automatically.
Hello! Today we are going to talk about Ethereum NFT royalties and compare them on OpenSea, LooksRare and X2Y2 marketplaces.
Before we start let’s know what does NFT royalty mean?
Methodology
In this dashboard in the first step we will focus on amount of royalty payments on OpenSea, LooksRare and X2Y2 marketplaces from March 2022 and after that find the average rates of payed royalties by looking at the number of sales and also number of buyers on each marketplace.
Finally we will find top 3 royalty collector projects and track the top one on each market.
After getting familiar with the royalties on NFTs let’s start our work!
OpenSea has both the most sales and the most buyers here, and x2y2 is ne next place on both metrics
The notable thig here is about LookRare and x2y2:
We saw Looks Rare had more volume of Royalty payments in previous part of this dashboard, but here we see this market has lower sales and also users than x2y2, In fact the rate of royalty payment in LooksRare is higher than x2y2.
In the next chart we will get more detailed info about this topic:
For more detailed comparation, we need to find each platforms sales and NFT buyers counts:
As we see OpenSea as the biggest and the most famous NFT marketplace in crypto, has the most share of royalty payments here.
544.6 M $USD has been payed for the artists which is %93.6 of all payments, after that LooksRare market with 31.59 M $USD is in second place and finally x2yx with 5.67 has the lowest share here.
another thing we can see in the chart is the falling trend in all markets starting from May 2022, which is caused by the negative effect of bear market on NFTs trading.
In below chart you can take aa closer look to daily royalty payments on each market:
If wee focus on the NFT buyers and the royalties payed by them, we see each OpenSea user is paying 523 $USD in NFT trades on average which is more than two other markets.
By looking to the monthly chart we can understand in bull market (until May 2022) LooksRare users were the pioneer royalty payers but in recent months OpenSea users have overtaken them.
With looking to the average rates, we can say NFT trades on LooksRare is more profitable for the NFT artists comparing with other markets. Averagely 206 $USD has been payed as royalty on each NFT trade on LooksRare.
However if we look to the monthly we understand The gap between LooksRare and other markets is been reducing in recent months.
==Average royalty payments on each trade:==
==Average royalty payments on by each user:==
Which project is the most Royalty collector and what is its income on each market?
"The Other Side” NFT collection has collected 44.68 M $USD in its trades as royalty which is more than any other project in Ethereum NFTs, 89.5% (40M $USD) of this volume has collected in OpenSea while 9.83 (4.39 M $USD) of this 44.68 M $USD is coming from LooksRare, x2y2 market with less than 1% (293 k) share has made the least profit for the The Other Side artist among these 3 markets.
Conclusion
- OpenSea has the most share of royalty payments, 544.6 M $USD has been payed for the artists which is %93.6 of all payments.
- LooksRare is more profitable for the NFT artists comparing with other markets. Averagely 206 $USD has been payed as royalty on each NFT trade on LooksRare.
- If wee focus on the NFT buyers and the royalties payed by them, we see each OpenSea user is paying 523 $USD in NFT trades on average which is more than two other markets.
- "The Other Side” NFT collection has collected 44.68 M $USD in its trades as royalty which is more than any other project in Ethereum NFTs, 89.5% (40M $USD) of this volume has collected in OpenSea.
- Finally if we look at the trades counts, An NFT artists have a chance to sell his/her arts easier on OpenSea rather then LooksRare and x2y2, but if the Artist is willing to get the maximum possible royalty, LooksRare can be a better choice.