Polygon NFT 🎨

    Q3. How popular are NFTs on Polygon?

    Summary đź“‹

    • Introduction
    • Methods
    • Results & Discussion
    • Conclusion
    • References & Appendix
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    1. Introduction 🟣

    1.1 Context

    Polygon is an EVM¹ (Ethereum Virtual Machine) and PoS² (Proof of Stake) Blockchain. Polygon is also known as “Ethereum’s internet of blockchain” because one of its purpose is to be a layer-2 scaling³ solution for Ethereum ecosystem, allowing users to perform almost the same interactions in Ethereum, but much cheaper and faster. E.G. The block-time on Polygon is 2s compared to 10s on Ethereum. Access for more informations.

    1.2 Objective

    The primary objective of this dashboard is to answer some questions, like:

    • “How popular are NFTs on Polygon?” tracking daily volume over the past month/year/etc.
    • “How many Polygon users started off with NFTs”?
    • “Who made the most profit”?

    We’ll try to set logical metrics to answer all of these questions.

    2. Methods đź§Ş

    I got data from the new Polygon database, beginning June 06, 2022

    2.1 Metrics and Data Sources:

    2.1.1 Volume of NFT Transfers in USD & Number of NFT Txs

    I’ve decided to choose a metric that covers all NFT activities as a measure of NFT popularity. I used the polygon.core.dim_labels to get NFT contracts and labels, and I merged into polygon.core.fact_token_transfer and polygon.core.fact_transactions to access transactions information such as senders, receivers and values. Then, I can calculate the volume and number of NFT transfers.

    2.1.2 Users that Interacted With NFT First Time

    I used the database polygon.core.dim_labels and polygon.core.fact_event_logs to figure out the first user interaction with NFT. It might be a NFT purchases or sells, common transfers, mints, or, in most of the cases, web3 game activity.

    2.2 Filter and Constrains

    The main filter I use was LABEL_TYPE = 'nft' because I don’t want just to get NFT data from Opensea or other marketplace as suggested, but I would like to see all NFT activities. I believe that to check the NFT popularity with accuracy, it’s important to assess web3 projects that use NFTs as features like Dapps and games.

    3. Results & Discussion 📊

    3.2 How many Polygon users started off with NFTs?

    3.3 Who made the most profit?

    It seems like addresses that received any NFTs didn’t sell it from 06 Jun 2022 until now. As shown in the table bellow

    4. Conclusion 🟣

    • The NFT popularity in terms of volume and transfers is slightly decreasing, maybe because of the crypto bear market.
    • However, Polygon received 136.9K addresses that interacted with NFT first time, beginning Jun 6, 2022
    • Most of NFT activities over the period were related to games.
    • We couldn’t see addresses that received any NFT, and after sold/transferred it (since Jun 06, 2022). Therefore, there’s no profit to display.

    5. References & Appendix đź“°

    [1] EVM: [2] PoS: [3] Layer-2 Scaling:

    Note

    Dashboard built on July 15, 2022

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    Discussion

    • NFT transfers are roughly steady overtime.
    • We can see that the moving average of daily volume is decreasing. My hypothesis for this is MATIC price caused the downward trend. However, as we can see through the scatterplot, the MATIC price is increasing over the same period, and its correlation with the daily volume is negative.
    • We also can notice that most transfers and USD volume involve NFTs from Sunflower Land, Decentral games, Voxies and Decentraland. They are all web3 games that use NFTs a lot.
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    Discussion

    • We can realize that the additional new users are decreasing over time. Keep in mind that we are looking for a range of dates. It might have users that interacted with NFT before 06 Jun, and are being counted as new interactions. However, we can visualize that new users are decreasing at a steady rate (take a look at New NFT Users Rate).
    • Again, we can see that most of the new addresses are playing Sunflower Land, Decentral Games and Voxies.
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