Smart Money NFT Traders

Q81. Which wallets have made the most SOL off NFT mints and NFT trades since the start of the new year? What types of actions have led to being a profitable NFT trader on SOL? Is there a pattern behind their NFT trading strategy and can you define some of these traders as "smart money"? Do you think you need to be a "whale" to do well trading SOL NFTs, or can anyone have success in this market?

Introduction:

According to the previous analysis, the performance of Solana blockchain in NFT market over various blockchains is promising and fantastic. Due to this consideration, this bounty aims to track the users that made most profit from NFT trading on Solana blockchain.

Actually, we want to discover the behavior of top NFT traders in 2022.

Methodology:

In this bounty, I used to different methods to clarify the performance of top NFT traders.

The first one track NFT traders by their mint, sell and buy action and used transaction table to identify the previous holder of NFT and count it as NFT seller.

In the second approach, the unique mints in 2022 are used to track the behavior of NFT users and disclose the NFT traders with most profit in market.

For this purpose, the following steps are adopted:

NFT mint--> select mints from flipside_prod_db.solana.fact_nft_mints and set currency to SOL.
Sale NFT--> Track selected mint in flipside_prod_db.solana.fact_nft_sales to estimate the obtained SOL from sell.
Calculating profit--> profit = (Sales volume - mint price) both on SOL
Hold time--> find the time of mint and sale-->DATEDIFF(day,sale_time,mint_time) as hold duration.
Finally, obtain the mentioned parameters for unique minter of NFT and rank them.

Outcomes:

The first bar chart illustrates the top NFT traders and their profit. As shown in this chart, the first two successful traders obtain over 82k and 67k SOL, respectively.

The first and most important part of taking profit from NFT trade is the minting process.

The most used NFT collections to mint by top NFT traders is shown in the donut. As shown in this chart, the magic ticket, monkeyleague gen zero and bored ape solana club are the most used NFT collections by top NFT traders.

The minting performance of top NFT traders over time shown in the area figure. Based on this figure, the top trader mint NFTs in the final days of February.

An important aspect of taking profit from NFT trade is finding the best time for mint and sale NFT on market. The scatter plot shown the average hold duration of NFTs for top NFT traders.

Based on this plot, the two most successful NFT traders hold their minted NFT for 109 and 75 days averagely.