New data reveals unusual NFT flipping trend Dorian Batycka · 2 mins ago · 2 min read
Despite a market downturn, sellers on the NFT marketplace BLUR keep flipping at increased rates — despite losses surmounting.
Cover art/illustration via CryptoSlate
New data from @NFTStatistics shows a unique dynamic emerging within the NFT space.
Data shows that as NFT flipping has increased with the market upswing, flippers are now losing 4,000 ETH per week over the past two weeks, which has baffled market watchers.
Currently, the opposite is true, says @NFTStatistics. The 30-day period has seen the highest number of flips ever recorded. However, he notes that despite this, losses from these flips are approaching historic highs.
NFT flippers losing money
Moreover, @NFTStatistics shows using on-chain data that flippers have lost over 12,000 ETH so far on Blur trades in the last month, which he speculates may be in anticipation of the Season 2 token unlock — with listings accruing value in BLUR token based on their listed value.
@NFTStatistics postulates that the losses can be attributed to the downward trend of the market, and adds that volumes of trading have resulted in high gas fees and royalties, adding to the losses.
Additionally, @NFTStatistics said NFT holders have been dumping their assets onto bidders, contributing to the losses incurred by flippers.
Other notable NFT news this week:
- Meta, Instagram and Facebook have decided to wind down their NFT offerings 6 months after their debut.
- Manifold offers paid burns, the new feature allows creators to choose whether to add an option fee on top of a burn redemption per edition minted, with 100% of funds being diverted to creator.
- Salesforce is tapping into NFTs through a suite of customer offerings designed to help integrate with cloud computing.
- Yuga Labs continues to expand the Bored Ape ecosystem with new Sewer Pass NFTs, alongside a generative drop and an Ordinals one too.
- Sotheby’s announced on March 15 a swanky new NFT exhibition and auction opening at its Paris location March 17-24, inspired by the “Oddly Satisfying” subreddit, it features meme-inspired art works by the likes of Anyma, Beeple, Lucas Zanotto and Josh Pierce.
Recent data released from the blockchain analytics firm NonFungible.com has revealed an unusual NFT flipping trend. NFTs, or non-fungible tokens, are digital assets that are secured and stored on the blockchain. They are unique, easily traded, and often have speculative value attached to them.
The data reveals that NFT flipping activity has been increasing over the past few months, with over $6.5 million in reported flips happening in the first quarter of 2021. This number is up from just $700,000 in 2020. Flipping is when someone buys an NFT and then quickly resells it at a higher price. It’s similar to buying and selling stocks in the stock market.
According to NonFungible.com, the majority of NFT flipping activity is being driven by investors who are buying and selling popular pieces of art, trading cards, and other digital collectibles. Some of the most popular NFTs being flipped include Cat-athon, Cryptopunks, Decentraland, MLB Champions, and NBA Top Shots. It appears that investors are leveraging the unique nature of NFTs to capitalize on short-term trading opportunities.
Unsurprisingly, the data also reveals that the most active NFT flipping hubs are in the US, UK, and the rest of Europe. As the popularity of NFTs continues to grow, it’s likely that flipping trends will continue to rise as well.
It will be interesting to see if this NFT flipping trend continues in the future, and whether it signals a larger shift in the way people view and trade digital assets. For now, investors should be aware of the potential risks that come with trading NFTs, such as market volatility and the possibility of financial loss.