How to analyze NFT using Nansen.ai
What is Nansen.ai?
When dealing with NFT, it is very important to conduct detailed research and learn about market conditions and current trends to earn some large-scale gains. Nansen.ai is a blockchain analytics platform, which combines on-chain data with a constantly growing database that contains millions of wallets. This could help newbies, professionals, and even some companies detect important market trends.
You can find various characteristics available in several tiers there: volume, transactions, NFT indexes, insights, and reports. OneArt has explored key traits that make Nansen.ai so valuable and useful and has prepared a detailed guide for you to leverage its features and find top NFTs to make money on.
How to start researching NFT
Firstly, you have to sign in to the platform to have access to researching. Although some functions are paid, a lot of functions are free of charge, and this is quite enough to conduct decent research.
After you are on a Home page, head up to the NFT tab -> NFT Paradise. There you can see the 24H Market overview. Here you have an overview of Volume, Market Cap, Average Price, and Floor (the lowest listed price of the collection). The chart looks like a news-on-top collection of the last 24 hours. It gives you an idea of what is currently happening and what is hot in the market. Above you can choose filters with marketplaces. NFT collections can be added to the Watchlist (max 5). Here you can dive into each of the projects and learn about them in more detail.
How to analyze the NFT project
Let’s take a look at the hot collection on the current market — goblintown.wtf . Click on the name of the collection to see when it was launched, the number of NFTs in circulation, links, and other significant information.
After that, find the dashboard with the average price & volume:
Here you can pick a period of 90 days, 7 days, and 24 hours. In the example of goblintown.wtf we see how the prices were moving from the start of the sales and then growing to the maximum level. The blue line is the average price giving you an idea of the average price for the goblintown.wtf project. It is better not to focus on the last chart (current day) because it is usually an open day and the data could not be updated yet.
Then we are coming to the Price Range:
Here you can see the average price as on the previous dashboard, as well as the minimum price at the bottom (0.01 ETH) and the maximum at the top (78 ETH).
The Individual Transaction dashboard shows where transactions were made at a certain price level separately for Smart NFT Buyer and Common buyer. You can analyze who bought the token and how much they paid, what were the maximum and minimum prices compared to the average price.
Transactions & Buyers dashboard analyze the number of transactions and unique buyers. Most graphs will look like an example with a spike at the beginning of the public release. But in some graphics, there may be a spike in the middle, which means more people have flooded into the project.
To sum up, after analyzing these dashboards, we can say that in 20 days in the market goblintown.wtf have:
Current floor price: 5.64 ETH
Average NFT price: 5.8 ETH
Highest sale price on the day: 20 ETH
Highest sale price to date: 78 ETH
How to analyze Market Trends
Jump to Trends & Indexes tab. There are charts indicating the total volume of the market, the number of transactions, user activity, as well as statistics on the most expensive NFTs purchased in 24 hours. You can compare data on different marketplaces (OpenSea, LooksRare, Mints, X2Y2).
This chart will give you an idea of the sales volume for each completed trading week. You can compare all marketplaces or pick particular ones you are interested in.
Or compare some wallet activity per week — users who buy or sell NFTs per week. Alongside, take a look at buyers per day: who return or buy for the first time.
Next you have a line of tabs with NFT Indexes. Let’s take a closer look at it.
The Nansen NFT indexes are measuring the performance of the NFT markets. Each index traces an NFT category, or a particular market segment.
Nansen NFT-500 Index
The NFT-500 is a broad market index which tracks the market movement of NFTs based on the Ethereum blockchain (ERC-721 and ERC-1155). The NFT-500 Index tracks the activity of the NFT market. The benchmark index is estimated on an everyday basis and updated every 30 days.
Nansen Blue Chip-10 Index
The Blue Chip-10 index is a remodification of the primary index constructed by Nansen. Basically, Blue Chip could be a collection of 20 top NFTs. The Blue Chip-10 index is calculated every day and updated every 90 days, where the index components are reassessed and updated correspondingly.
Nansen Social-100 Index
Social NFTs concentrate on social connection. These NFTs may grant privileges or access or have other utility. Social NFT collections account for the biggest market share within the NFT market. The Social-100 tracks the top 100 NFT collections by capitalization. The index is calculated every day and rebalanced every 30 days.
Nansen Gaming-50 Index
This statistic is about in-game digital assets. The Gaming-50 index tracks 50 Gaming NFT collections ranked by capitalization. The Gaming NFTs index is calculated every day and updated every 30 days, where the index components are reassessed and updated correspondingly.
Nansen Art-20 Index
This index tracks 20 art collections with the biggest capitalization. Art NFT collections usually have a lower circulating supply. There are some cases where NFT Art collections exist as unique, one-off prices. The index is calculated every day and updated every 90 days.
There are some additional features, both paid and free of charge:
- Discover what Smart Money accounts have bought and deposited to see whether you should purchase and deposit in that pool, too.
- Check token holdings and the hottest active DeFi contracts.
- Overview of stable coin and ETH balances, total ETH deposited, on-chain volume metrics, and transactions.
- Check current gas prices, high gas consumers, and spenders on Ethereum.
- Examine whether a wallet has been Sandwich Attacked and on which trades it happened (BETA version).
You can do even more with Nansen.ai. Use this platform to find hidden hot NFT & Crypto projects and follow us for future guides like this one.