NFT Project Analysis Using Holder, Buyer, OTC, and Wallet Network Metrics

Summary

The document outlines nontraditional ways to study NFT projects, using CryptoPunks as its example. It proposes tracking unique holder wallets to gauge ownership distribution and concentration, and first-time buyers to assess whether new participants are entering. It also describes monitoring over-the-counter transactions made through a contract’s wallet-specific sale functionality, which may reveal activity by larger or more active participants.

For holder growth, it reports steady expansion from 2017 through late 2020, a sharp increase during the 2021 NFT bull market, and slower growth afterward, including an estimate of about 1.2 new CryptoPunk holder wallets per day in 2022. The article also recommends graph analysis to find wallet clusters and group activity by transaction value. These measures can add context to volume and floor price, but wallet counts can be distorted when one owner uses multiple addresses, and the material provides exploratory indicators rather than a tested trading strategy or proof of predictive power.

Key ideas

• Unique holder counts can help describe NFT ownership concentration, though one owner may use several wallets.
• First-time buyer activity can indicate whether new participants are entering a project.
• Wallet-specific over-the-counter sales can help track negotiated transactions and active participants.
• Graph analysis can reveal wallet clusters and patterns in transaction activity.
• The CryptoPunk holder figures are descriptive and do not demonstrate predictive trading value.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.