Question:

Quite a few non-Web3-native companies have gotten involved in NFTs — Reddit, Starbucks, Porsche, Nike, the NFL, and others across chains like Ethereum, Polygon, Flow, and more. We want to know:

• How does each project compare, and does choice of chain seem to affect outcome? (Include any metrics you think are relevant — mint and trading volume, total revenue/royalties, unique wallets, hold time, etc).
• How has each project fared since launch? Have volumes fallen off, did are there any unusual effects on activity?

Choose at least 3 NFT projects from non-Web3-native companies for your analysis.

For reference, compare results with at least one Web3-native NFT project of your choice - how do the top brands' projects compare to the industry native one(s) you've chosen?

Overview of analysis:

This analysis has been divided into the three parts:

• Comparison of sale activity for selected NFTs on multiple chains
  • General comparison (All time)
  • General comparison (first 45 days of launch)
  • Over time analysis (first 45 days of launch)
• Purchaser behavior and Leaderboard
• Summary and references

What is NFT:

NFTs are non-exchangeable tokens. They are issued as a unique digital certificate of ownership for any type of digital asset. In fact, an NFT is a smart contract that is regulated and digitally secured using open source platforms (which anyone can download from sites like GitHub). Once written, it can be stored or permanently published as a token on a blockchain network like Ethereum. Because NFT allows the buyer to own the original commodity, which includes internal authentication; As a result, this authentication proves the ownership of this work and cannot be used by others. In fact, the spiritual value of the work is tied to the credibility and identity of the artist, and they agree to produce and donate only one unit of the desired work as NFT to the buyer.

NFTs can be a financial investment, an emotional purchase, a collector's item, or a way for the buyer to connect more closely with the creator of the NFT, such as an artist or a brand. This is similar to how people collect postage stamps, old coins, or butterfly collections.

Why have reputable companies entered the NFT world?

NFTs can be used to tokenize (digitize) almost anything. However, different types of "media" make the most use of these tokens. The most popular applications of NFTs include the following (active projects in each area are also indicated):

• Digital artworks (SuperRare, KnownOrigin, Async Art, Rarible, OpenSea)
• Digital music (Mintbase, InfiNFT, Airnft and Audius)
• Virtual Real Estate (Cryptovoxels, Decentraland and Sandbox)
• Wearable items of virtual reality or VR Gaming and computer games (Axie Infinity, Sorare and…)
• Tickets for various events or permission to attend them (get protocol)
• Event attendance/activity subscription badges (POAP and Galaxy)
• Blockchain domain names (Ethereum Name Service, Unstoppable Domains and TNS)

About Reddit NFTs:

Reddit is basically a large group of discussion forums where registered users can talk about almost anything you can imagine; From world news and popular celebrities to technology, comic books, literature and the weirdest things in the world, including things that are not safe for work.

This association introduces itself as "the front page of the Internet"; Because active users on this platform get to know the important news of the world earlier than the rest of the people and can identify trends better than the general public.

Reddit, as a social network that played an important role in the promotion of digital currencies since its inception, has included Ethereum-based NFTs in its platform. It seems amazing that Reddit manages to sell tens of thousands of NFTs in a matter of hours in such a “crash cryptocurrency market” and also collect 3 million holders. However, with Reddit's monthly audience of just over 50 million users, experts say, this is just the beginning.

About NFL NFTs:

NFTs are non-exchangeable tokens. They are issued as a unique digital certificate of ownership for any type of digital asset. In fact, an NFT is a smart contract that is regulated and digitally secured using open source platforms

Flow ecosystem has rising trend in NFT sector due to the various advantages. One of the most popular NFT collections on Flow ecosystem is NFL AllDay collections. NFL All Day is a digital collectible marketplace that lets football fans collect video highlights in the form of NFTs and connect with other like-minded fans from around the world.

NFL All Day packs are bundled Moments bought in the NFL All Day marketplace. Each Moment belongs to a specific tier, which indicates the number of highlights available and the rarity of the Moment.

About Adidas NFTs:

Sportswear brand Adidas recently teamed up with three prominent members of the NFT space: Bored Ape Yacht Club, GMoney and PUNKS Comics to advance the Metaverse. Adidas Originals has announced the upcoming launch of its non-fungible token (NFT) collection called Into the Metaverse. In this project, Adidas defined a digital asset in cooperation with the above companies and put 30 thousand copies of it on sale on December 17, 2021. As of December 20, more than 20,000 copies of these NFT tokens have been sold in 3 days.

With the help of these unique tokens, it gives users exclusive access to some clothes in the Metaverse sandbox game. There are also plans to buy some physical Adidas brand products in 2022.

Part 1: Comparison of sale activity for selected NFTs on multiple chains

Useful links:

• Adidas NFTs
• Reddit NFTs
• NFL AllDay

Findings:

The invisible friend collection has been selected as web3 native project to made precise comparison with these selected collections. The general comparison of NFT sale on various chains over the selected time period is as below:

• The NFT sale in volume dominated by the NFL AllDay collection as expected.
• The NFTs on Reddit collection are more expensive than other two and the second place belong to the Adidas NFT collection. Also, the median of sale price validate the previous statement.
• The average volume of sale and unique purchaser per day are high for NFL AllDay compared to Adidas and Reddit NFT collections.
• The over time analysis related to the selected collections on various marketplaces has been in the first 45 days of launch.
• The sale count and number of unique purchasers have been dominated by NFL AllDay collection as can be seen.
• However, the sale volume in USD is dominated by Adidas and NFT AllDay in the first 45 days of launch.
• In the first 45 days of launch the most successful collection is NFL AllDay from the aspect of sale count but by considering the sale volume in USD the invisible friend collection has dominated the other non-web3 NFT collections.
• The average sale price of invisible friend collection was higher than other collections in the first 45 days of launch but sometimes Adidas has spiked ad passed it.

Part 3: Summary and references

Findings:

Now its time to investigate the behavior of purchasers on selected collection through various blockchains:

• The invisible and Adidas collections have one time purchaser more than other collections. However, the purchasers of NFL AllDay are more sticky and bought NFTs from this collection more than 5 times.
• The distribution of purchasers by average sale price in USD indicates the value of NFTs on each collection and blockchain. According to this chart, most of the purchasers of Adidas and Reddit collections bought NFTs for 5-100 USD but the dominant purchaser group on Invisible friend collection is 500-2000 and this is a validation for higher value of NFTs on this collection.
• The average hold time of NFTs for various collections has been estimated and shown by pie charts. Based on the outcomes, the NFL AllDay collection has been hold more than other collections.
• Also, other collections have been hold by 10-20 days on average.

Part 2: Purchaser behavior

Methodology:

The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:

• Step 1: Find out the NFT sale on each chain

  • Blockchains→ Ethereum, Flow and Polygon
  • Used table→
    • NFT trading→ Blockchain.core.ez_nft_sales
    • Ethereum→ Adidas
    • Flow→ NFL AllDay
    • Polygon→ Reddit
    • We3 native project→ Invisible friend

• Step 2: Determine the sale activity of NFTs on chains

  • General metrics→ Count of sale and purchasers- Count of NFTs, Average sale volume- Average sale count and volume of sale per day, collection and marketplace- Floor and highest sale price
  • Over time metrics→ General metrics overtime, Cumulative analysis, 7 and 14-day moving average sale price in USD, Median and average sale price in USD

• Step 3: Purchaser behavior and Leaderboard

  • Purchaser distribution by sale count and volume in USD
  • Held NFT by owners
  • Purchase distribution over days of week

• Step 4: By aggregating the outcomes of the steps and deep dive into the blockchains, draw a conclusion about the NFT sale across chain

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The most important part of the overtime analysis in this investigation is that, the sale activity of various collections has been determined in the first 45 days of the launch.

The methodology used for this purpose→ row_number()over(order by BLOCK_TIMESTAMP::date) as days

Part 1-1: General comparison (All time)

Part 1-3: Over time analysis (first 45 days of launch)

Conclusion:

NFT is becoming more and more used day by day and the scope of its use has gone beyond the world of crypto. For example, the non-exchangeable token is an inseparable part of the metaverse concept that shapes the future of the digital world. By considering the consequences of previous parts the following conclusion has been drawn:

• The network used for NFT development has a significant impact on the success of the project. The Ethereum network is considered one of the most popular and largest first layer networks in the crypto universe. Also, due to the success and popularity of the Flow network on NBA TopShots, it provides a very suitable platform for NFT developers. Due to the fact that it is one of the most popular second layer networks for the Ethereum network and its very low costs compared to Ethereum, the Polygon network is doubly attractive for NFT projects.
• The trend of using NFT in various networks has always been growing, but large group of factors have been affected the success of project on blockchains.
• The supremacy of the Ethereum network is undeniable from the point of view of sales volume.
• The origin of NFT projects (web3 native or out of this world) on the each network has great impact on the volume and price of NFT sales, which can be seen in the results as a comparison Invisible dominated the selected collections.
• Considering the importance of NFT projects and their popularity among users, all networks are trying to introduce unique projects and gain a larger share of the NFT sales market.

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Part 1-2: General comparison (first 45 days of launch)