When calculating the performance of an NFT collection, most analysts calculate the average performance. For example, the first CryptoKitties were sold in December 2017 at an average price of $ 3.24 each. On the first day, 105 CryptoKitties were created and different collectors spent a total of $ 340.63 worth of Ether (ETH) on those CryptoKitties. That makes an average price of $ 3.24 per CryptoKitty. CryptoKitties is currently trading at an average price of $ 256.99. This equates to an average price of $ 256.99 for CryptoKitty and an all-time average collection return of more than 7,800%.
Out of CryptoKitties, CryptoPunks, and Bored Ape Yacht Club, which series of non-fungible tokens (NFTs) was the most profitable for investors since 2017? More importantly, which was the most profitable in 2021? The Cointelegraph Research team answers this question in their 80+ page research report on NFT.
However, average price is considered an unreliable metric for estimating the value of a collection, as some very expensive NFT sales can skew the data. For example, Larva Labs’ most expensive “CryptoPunk # 7523 COVID Alien” sold for $ 11.7 million in June 2021. That’s why CryptoPunk’s historical return of over 700,000% is so high – some CryptoPunks have sold for millions of dollars. Just a warning, the first CryptoPunks were actually given away for free, so technically the historical return on CryptoPunks is infinite. For this analysis, Cointelegraph Research used the price on the first day they traded, that is, June 23, 2017, when 19 CryptoPunks were sold for a total of $ 1,020.3.
However, Canadian concept artist and Medium blogger Kimberly Parker suggests that the median price is a better reflection of how much people are actually paying for NFTs on the market, and more importantly, how many artists can reasonably expect Sell your NFTs when collectors imagine their content.
To calculate the average price of all NFT sales for a specific collection, the sales prices are listed in order from lowest to highest. The median is the selling price exactly in the middle.
A final metric that is often used to measure the return on investment of an NFT collection is the minimum price. The minimum price is the lowest open sale price of an NFT within a collection in a market. For example, the minimum price for a Bored Ape is currently 38 ETH or roughly $ 125,000 on OpenSea. This means that the owner of a Bored Ape is willing to accept $ 125,000 for their NFT, but no less. After Visa paid $ 150,000 for a CryptoPunk in August 2021, the minimum price for that collection increased 280% to $ 425,000.
So to answer the question, the CryptoPunks collection has had the highest return for collectors since its inception in 2017; However, the Bored Ape Yacht Club, which just launched on April 30, 2021, has had the highest return for collectors to date in 2021.
Released in October, Cointelegraph Research’s NFT report covers how to value different types of NFT and how to discover interesting NFT collections before they go mainstream. The report also sheds light on the darker sides of NFTs, including their ecological impact and lack of liquidity. The report is supported by projects, including Enjin, OneOf, Nansen, Mintable, Alien Worlds, Animoca Brands, NFT Bank, The Sandbox, and Pinata.
This article is for informational purposes only and does not represent investment advice or investment analysis or an invitation to buy or sell financial instruments. Specifically, the document is not a substitute for individual investment or any other advice.
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