Nansen’s on-chain insights point to the growing adoption of NFTs on Arbitrum One via the Treasure Marketplace.
Nansen Lite now offers NFT Market Overview and Trends for free via email sign-up on the Arbitrum One network. Full Nansen subscribers have the added benefit of Mint-Master and being able to drill-down into individual projects and wallets using NFT God Mode, NFT Wallet Profiler and NFT Item Profiler. This coverage will enable users to discover opportunities, perform due diligence and make strategic decisions when investing in Arbitrum-based NFT projects.
Using Nansen’s new coverage we found that:
With the benefits of low gas fees, it is no surprise that more users are switching to Arbitrum One, allowing the protocol to lock in over USD 4 billion in total value. Among the many developments on Arbitrum One, the Treasure Marketplace has emerged as its biggest marketplace for NFTs denominated in Treasure’s native token $MAGIC. To understand how Nansen can support data coverage for this community, we conducted an informal focus group session with several Arbitrum One users. Astrololo, an Arbitrum enthusiast, pointed out that:
“Arbitrum has low network fees. It allows users to do much more for less. For example, it allows you to play on-chain games such as on ETH. You need to pay like $80 to do a transaction. On Arb[itrum], you pay under $1, and you're always guaranteed a mint most of the time. It allows creators to make games that require interaction and constant gas fees while making it something people can afford to play” - Astrololo
Additionally, Treasure’s free mint model and organic community growth have been one of its critical strengths. One user of Atrbitrum One, Travis, believes that “a solid [Arbitrum] community is the core for all successful projects, as they are able to withstand changes in the market performance, and any external attacks/breaches on the project, seen in the recent events.” Another Artibirum user, sisu, shared:
“The thing that sets us apart is that everything on the Treasure Marketplace feeds back into each other. It's all denominated in $MAGIC, and each listing is part of the larger whole, with their respective games, increasing the network effects of the ecosystem.” - sisu
Responding to the enthusiasm of Arbitrum One and Treasure users, Nansen asked users how we could provide data coverage for this community. Arcanic shared:
“Nansen can help participants on Treasure/Arbitrum by not only bringing over the same features and utility as on L1 but also gather[ing] and collect smart data regarding the tokenomics of the various collections on Treasure, possibly creating tools that can help visualize data such as yield when inputting certain values (i.e. NFTs held - boosts)”. - Arcanic
Adopting Arbitrum One users’ feedback, Nansen now offers users a network of real-time dashboards centered on the NFT-related activities on Arbitrum One.
The following are trends gathered through Nansen’s coverage of NFT-related activity on the Arbitrum One Network and Treasure Marketplace.
The volume of transactions and transaction count decreased drastically during the first week of March; this could reflect the exploit incident on Treasure, where Treasure instructed users to delist NFTs after the exploitation. Similarly, this trend was reflected in the secondary sales market on the Treasure Marketplace.
Year-to-date, Arbitrum One has processed 75.9k ETH. Additionally, 19.3k unique wallets have made NFT-related transactions on Arbitrum One. Of the volume processed and unique wallets transacting, the Treasure Marketplace accounted for a volume of 73.5k ETH – 96.8% of total transactions on Arbitrum One.
One possible reason for the volatility in returning and new users may be that the NFT transactions on Arbitrum One are still in its early growth phase. However, when comparing the Buyers per day on the Treasure Marketplace, we can see a distinct growth in returning buyers returning to Treasure.
While the growth in contracts with 1,000 or more sales per week experienced a much more visible growth, the contracts with 10 or more sales had a less volatile growth trajectory. This could mean that small projects or peer or community-driven projects are gradually sustained in the Arbitrum One and Treasure ecosystem.
Using information derived from our Profit Leaderboard, we analyzed a sample of 665 wallets transacted on the Artbirum network. Out of 665 wallets, 389 wallets were in profit and were, on average, 28.4 ETH in profit. The remaining 276 wallets were in a deficit and were, on average, -28.1 ETH in deficit.
Additionally, about 4.5% (30 out of 665) of the wallets made a minimum of 100% return on their investment. When analyzing profits as a percentage of initial spending, we found that the average profit was approximately 21.3%, with a max profit return of 1,797% for one wallet. The most significant loss was about -1%. Perhaps, the free mint model is a facilitating factor behind such gains.
For users new to Arbitrum One’s NFT ecosystem, NFT Paradise’s Market Overview provides detailed information on notable NFT collections transacted on Arbitrum One. Furthermore, Legions and Smol Brains are leading as some of the most expensive purchases on the Arbitrum One.
Capitalizing on the unique insights provided by Nansen’s NFT God Mode, we can zoom in on such notable collections. For example, we can see that the average price of Smol Brains has been trending downwards. However, it appears that the sale prices of Smol Brains have converged into a more consistent range (i.e., less volatile sale prices). In addition, Nansen’s NFT God Mode enables users to do deep dives on projects of interest, such as understanding the price actions on an Arbitrum NFT collection, how Smart Money interacts with the collection and the growth of unique holders of that specific collection.
Entering the contract address of any Treasure NFT into NFT God Mode allows a comprehensive breakdown of top holders, unique addresses and a variety of key metrics.
In addition, when combined with the broader Arbtirum One coverage offered by Nansen, users can now dig deeply into associated tokens such as the smart money movement for the $MAGIC engine underpinning Treasure.
While OpenSea may have the lion’s share of the NFT market, the popularity of NFTs is growing by the day. With that comes the demand for what other protocols have to offer. Nansen’s on-chain insights point to the growing adoption of NFTs on Arbitrum One via the Treasure Marketplace. We believe that Arbitrum One, and thus the Treasure Marketplace’s coverage, will enable users to discover opportunities, perform due diligence and make strategic decisions when investing in Arbitrum-based NFT projects.
The authors of this content and members of Nansen may be participating or invested in some of the protocols or tokens mentioned herein. The foregoing statement acts as a disclosure of potential conflicts of interest and is not a recommendation to purchase or invest in any token or participate in any protocol. Nansen does not recommend any particular course of action in relation to any token or protocol. The content herein is meant purely for educational and informational purposes only and should not be relied upon as financial, investment, legal, tax or any other professional or other advice. None of the content and information herein is presented to induce or to attempt to induce any reader or other person to buy, sell or hold any token or participate in any protocol or enter into, or offer to enter into, any agreement for or with a view to buying or selling any token or participating in any protocol. Statements made herein (including statements of opinion, if any) are wholly generic and not tailored to take into account the personal needs and unique circumstances of any reader or any other person. Readers are strongly urged to exercise caution and have regard to their own personal needs and circumstances before making any decision to buy or sell any token or participate in any protocol. Observations and views expressed herein may be changed by Nansen at any time without notice. Nansen accepts no liability whatsoever for any losses or liabilities arising from the use of or reliance on any of this content.