New NFT ventures are proliferating on the Web, but what makes them wise investments? Recently focus has been placed on NFTs, or non-fungible tokens, as a result of the absurd prices at which certain unusual assets are now being traded. It feels like a new NFT initiative is debuting every two weeks due to the constant hype surrounding one NFT trend or another. How can analytics experts participate in the NFT initiative without unintentionally actually investing in a resource that isn’t as useful as it might seem? In this article we will find about the Nft metrics and what does volume traded mean on opensea ?
(NFT) project managers, collectors, dealers, and investors assess the worth of NFT data using a variety of measures. For instance, whether it is a blue-chip asset, will provide a high return on investment (ROI), needs to be held on to it for higher gain, and so forth. NFT volume exchange is one such essential measure, but what does volume traded mean on opensea?
Hundreds of thousands of NFT ventures are available, and the number of new NFT ventures being created each year has also considerably increased.
Even successful investors may be considering how to evaluate NFT projects at this time in order to select which one to invest in. Spencer Noon, co-founder of Variant Fund, listed the following measures for assessing NFT ventures.
1. Estimated Market Cap
A NFT’s projected market cap serves as the first measurement of evaluation. This can be determined by dividing the cost by the supply for the past seven days.
Compared to cryptocurrencies (fungible tokens), NFT markets are typically less liquid and move far more slowly because you have to locate a buyer for your NFT.
More token owners may be prepared to spend more to buy each other’s NFT collections if the projected market cap is high, which indicates that there are many token owners.
2. Diamond Hand Balance
The number of owners who have not sold their first NFT collection is the second criteria to evaluate a collection of NFT cards. This is a helpful metric for locating long-term supporters of a project.
3. Amount of Different Holders
The number of distinct holders is the third criterion to gauge an NFT’s worth. To gauge the size of a project’s community, utilize this indicator. Increased word-of-mouth spreads in larger communities, which in turn helps sell the venture to even more prospective purchasers.
4. Volume Traded
The volume traded of the NFT collection is the fourth metric you can employ. This demonstrates the collection’s total value.
Both Opensea and Rarity also offer this metric. But what does volume traded mean on opensea?
It shows the amount of money being spent on the venture, volume traded is a solid indicator of the number of members informed of a project. The value of existing collections is swapped frequently.
This discrepancy in volume demonstrates the gap in popularity between what many people consider to be the NFT projects’ (BAYC) pinnacle and a well-known and well rated project (WOW).
The volume exchanged also enables us to make educated guesses about the revenue generated from subsequent purchases for the founding group or developers.
People need to be ready to purchase and trade in order for a collection to reach significant volume.
It is simple to tell if an NFT project is presently popular by examining the total volume exchanged. The market tends to be more liquid the larger the volume. You need a stable marketplace so that you can enter or leave NFT trades with ease.
The amount of revenue (through secondary sales) that two collections with the identical volume of trades could have generated will vary depending on the royalty percentages that each collection has decided upon.
Obtained by multiplying the royalty percent (determined at mint) by the volume traded to determine the total number of royalties earned by a venture.
How successful an NFT collection is can be assessed by analyzing the volume traded. There must be a want for a collection or buyers in favor for it to reach a large volume.
To find out what does volume traded mean on opensea, let’s look at this example, Bored Ape Yacht Club, among the top NFT projects, has a high consumer awareness and low volume traded value relative to World of Women, another of the top NFT initiatives.
5. Rarity Rating
The rarity score, a metric developed by Rarity to assess the potential value of the NFT collection, will likely prove to be the most helpful one on this list.
NFTs with greater rarity scores are typically more expensive than ones with lower rarity scores, all other being equal and if you do not have an aesthetic preference.
On the website rarity.tools, generative art and valuable NFTs are ranked according to their rarity. The rarity of a single NFT is one of the important factors in determining its value
With just this knowledge, NFT collectors could more readily appraise and evaluate the relative worth of various NFTs.
Along with the volume traded, OpenSea also provides you with the NFT collection or project’s floor price.
6. Floor Cost
The floor price of NFT collections is yet another helpful metric that can be applied. This indicator can be used to track how simple it is for new NFT clients to sign up for the NFT collection.
The numerous new NFT initiatives that are launched every day can be accessed and navigated using the six metrics mentioned previously. These measurements will become even more crucial as the Open Sea expands exponentially.
NFT Volume Mean and volume Traded Mean on Opensea ?
The total number of properly executed deals over a certain time frame in one NFT collection or across the Ethereum network is known as the NFT trading volume.
Again to understand what volume traded means on open sea,let’s look at another example, For instance, the hourly trading value for a certain Doodles NFT is 1,000 if 1,000 of that NFT’s specific transactions occur within a single hour. A volume traded metric for an NFT asset will be displayed nearly universally on NFT markets. A comprehensive database of 10,000 NFTs’ trading volume is another option.
Understanding NFT Trading Volume Calculation and understanding what does volume traded mean on opensea ?
For each mentioned NFT, the NFT platforms utilize automated systems to total all sales for one day, seven days, thirty days, etc. The systems then retrieve the amount traded data at the predetermined periods.
You may be able to alter the To and From dates in some DeFi programmes, as well as alter the transaction volume into ETH or USD numbers for simpler understanding.
Assume you pay 60 ETH to purchase ape #2815 from the Bored Ape Yacht Club (BAYC) collection and then sell it for 100 ETH. By day’s end, the customer resells it for 110 ETH. Thus, 270 ETH will be traded for this NFT during a single day.
The entire sum of money, such as ETH or USD, transferred between the seller and the buyer over a given time frame is referred to as the volume transacted or trading volume of an NFT collection. The majority of projects, traders, and collectors base their assessments of digital content on volume exchanged criteria. This explains what volume traded mean on opensea.
Now you know about Nft metrics and what does volume traded mean on opensea. Market dynamics essentially decide how valuable NFTs are, making it impossible to accurately forecast where the NFT industry will go in the future.
However, by conducting thorough market research and utilizing the metrics we’ve provided, you can raise your chances of succeeding. They can be used to assess and handle the NFT market more effectively.