Moonbirds Leads a Crowded NFT Market: IntoTheBlock
NFTs

Moonbirds Leads a Crowded NFT Market: IntoTheBlock

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7 months ago

Following the explosive launch of Moonbirds NFTs, IntoTheBlock looks at activity across the NFT space and whether the market is saturated.

Moonbirds Leads a Crowded NFT Market: IntoTheBlock

The NFT space continues to receive aspiring news. The numbers of collections minted increases and NFTs keep achieving new selling price records. This article seeks to analyze the increasing number of collections in contrast with the few that are able to preserve its value, using as an example the newly launched Moonbirds collection.

By mid-2021, activity across the NFT space started to drastically increase. The number of NFTs collections being minted started to exponentially grow from 12.3k in January 2021 to 72.8k in April 2022.

IntoTheBlock’s NFTs Insights

The indicator measures the number of collections on-chain, currently being 83.6k. Even more impressive is the amount of collections being minted daily, averaging  505 collections per day in the last 7 days.
The growth and high demand for NFT collections unleashed an increase in supply of collections. Key metrics like total volume traded reached highs of $55.38 billion. In addition, several unique sales for pieces were in the tens of millions of dollars, although only 4.7% of Ethereum total addresses are currently holding NFTs.
Even though the NFTs space looks promising and continues to reach new highs, the sad reality is that many of these collections being minted do not accrue to the value expected by their issuers. A more detailed analysis of all collections reveals that very few manage to surpass and maintain this expected threshold. Furthermore, currently most of the value is concentrated in a few collections rather than spreaded throughout the space. The Trending Collections indicator below helps to spot the ones with high demand and activity trading.

IntoTheBlock’s NFTs Insights

This indicator shows the collections that have been traded the most over the last 24 hours. Although some of the most notable tend to appear here, others that are gaining momentum and frequently being traded also appear. From the value point of view, the involvement of high trading of the collections signals continued demand for pieces of the collection. Therefore, high volume tends to be indicative of value accruing towards up-and-coming collections.

Currently among the top “Trending Collection” is Moonbirds, launched on April 16. The collection managed to reach unprecedented daily volumes: $280 million were achieved between primary and secondary trading, just two days after its launch. Placing it among the top ranked NFTs collections to ever be launched.

Moreover, its issuer, PROOF Collective gave the collection community power. Members had the ability to claim 2 Moonbirds for free, plus a chance to enter the raffle for the chance to buy one at 2.5 Eth. This propelled the new collection into 5th for “Most Valuable NFT Collections” by market capitalization, surpassing other older and well known projects like Doodles and Meebits.

IntoTheBlock’s NFTs Insights

This indicator shows the 20 most valuable collections, sorted by their market capitalization. The time frame selector allows you to see the variation of the metrics over the selected period of time. In the case of Moonbirds, no change is displayed, because it was launched less than 30 days ago. As an outlier to the hundreds of collections launched daily, Moonbirds has managed to reach a market capitalization of $799.27 million in under 30 days. Primary minters were able to profit in the tens of thousands of dollars for their pieces, including this address which won 50+ pieces by creating 400+ accounts for gaming the Moonbirds raffle.
The NFTs space shows room for growth to continue. Recently Meta, the parent company of Instagram, announced that NFTs are coming to the platform. In addition Coinbase, one of the biggest crypto exchanges launched the beta version of their own NFTs marketplace. Even though the space continues to receive good news, it's important to be aware of the facts — the impressive success of the Moonbirds collections represented an outlier for the 500 plus daily minted collections. The NFTs space requires great knowledge, ongoing tracking and key metrics to make accurate models on the appropriate price of collections.
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