Data AnalystJ.Hackworthsecondary title

How much is an NFT customer worth?

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Most users generate very few fees or transaction counts. It is worth noting that,What really makes the difference between Blur and OpenSea is the top 1% of traders, who are the key drivers of the NFT market.Blur attracted top traders with its recent airdrop and zero fees.secondary title

The LooksRare and X2Y2 Post-Airdrop Situation

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LOOKS token distribution

On the first day of trading, the price of LOOKS tokens was around $2.1, with an estimated total airdrop of $206 million. Within a few weeks, LooksRare’s tokens increased by 180%, and the transaction volume increased from 0 to more than 20 billion US dollars.

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Get airdropped wallets, what do you do with these tokens?

As with the UNI token airdrop, initially, most airdrop holders chose to “sell” their tokens. So, these wallets are not currently staking or holding any tokens. LooksRare and X2Y2 are no exception.image description

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X2Y2 Airdrop Wallet: Percentage of Holding vs. Selling

For airdrops of other tokens, the results may be a little lower, but many users are profiting from their tokens thanks to the generous staking rewards offered by LooksRare and X2Y2.

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Convert "wool party" into buyers

Although the standard for LooksRare airdrops requires users to list NFTs on LooksRare to claim them, most wallets have never actually been bought or sold on the platform. And, the conversion rate of buying an NFT is only 24%.

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Although the move to list NFT will increase the number of NFTs purchased by users in the market. But from a practical point of view, many wallets do not actually list NFT, and some wallets will remove their NFT after receiving the airdrop. Since only one NFT needs to be listed to get the airdrop, X2Y2 and LooksRare missed out on the extra revenue it could have earned from users.

In 4 months, the retention rate of airdrop wallets on LooksRare was less than 10%. One year after the airdrop, only 0.2% of the airdroppers are active.

So the problem with distributing tokens in a big airdrop event is that,Many users will never engage with the platform without further incentives. In addition, it is better for the platform to have smaller airdrops to keep the frequency of users using the platform.

For the remaining handful of airdrop wallets, some are more loyal. On LooksRare, 20-30% of weekly trading volume and about 25% of weekly active buyers are airdroppers.

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Blur: A New Paradigm for Airdrops

After seeing the shortcomings of the previous NFT market, Blur came into being. Like other NFT marketplaces, it also plans to airdrop tokens to users, but this time there is a twist that the airdrop will last for three rounds based on:

• The first round: users who have bought and sold NFT in the past 6 months;

• Round 2: Users actively listing NFTs on Blur;

• Round 3: Users who bid on Blur.

While Blur cast a wide net for users, in the end only a handful of eligible Blur addresses actually used the platform. And, as traders look to get as many airdrops as possible, Blur’s metrics continue to soar.

41% of Blur's total users purchased NFTs prior to launch. These wallets often "contract" most of the transaction volume on the platform.

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It is too early to say that the BLUR airdrop was successful

With the Blur airdrop now live and with 360 million tokens distributed, the airdrop is estimated to be worth $288 million (assuming an average price of $0.80 on the first day of trading).

While many have reaped huge returns from the airdrop, with others claiming millions of dollars, only 21% of users currently hold the token airdrop, and only 31% of airdroppers have bought or sold NFTs.

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What's driving the Blur hype?

Without a doubt, Blur’s airdrop has done a fantastic job of generating hype and sales for the platform. Many speculated that the airdrop would lead to the demise of OpenSea. Others believe that professional traders are the ones who drive all the trading volume to generate more airdrop rewards. To investigate this theory, an analysis was performed of the total volume, profits, and wash trades of Blur's top traders.

Transaction volume on the Blur platform is very uneven, with just 25 addresses completing nearly 20% of the total purchase volume. For the top 250 users, this figure widens to 45%, showing the significant contribution of power users to the capacity of the platform. In contrast, OpenSea's top 250 addresses combined accounted for only 11% of the total.

The total airdrop rewards claimed on the Blur platform are closely related to the trading volume. Traders earn BLUR rewards ranging from 2% - 10% of total trading volume. Some addresses have even received millions of dollars in airdrops. In addition to the NFT in the wallet, many of these users can earn airdrop rewards (sales - purchases + airdrops) simply by trading on the platform, and generate considerable profits. After the airdrop, the number of "profitable traders" increased by 20%.

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Blur wash trading (left-handed versus right-handed experts)

While Blur's overall wash trade percentage is relatively low at around 11%, the majority of the top traders on the platform are washing their trades to maximize their returns. The analysis showed that the top 5 traders accounted for 37% of the total volume and that most of the top traders were involved in some form of wash trading.

in conclusion

in conclusion

The NFT market has witnessed a series of airdrops over the past year, but the success of these airdrops has been in doubt. A close examination of the airdrops of LOOKS, X2Y2, and BLUR tokens reveals a major post-airdrop sell-off and a sharp drop in user activity after the airdrop. Blur has made significant strides with the introduction of a multi-round airdrop model, but there seems to be a small minority manipulating the overall hype and volume. From the data, we can see that:

• Large airdrops can backfire as users tend to sell tokens after claiming them.

• To retain user attention, airdrops have proven effective, as Blur has successfully turned one-time users into loyal customers.

• A one-size-fits-all airdrop approach won’t work. Instead, on-chain data should be used to incentivize and significantly increase the success rate of airdrops by finding high-quality users.

• Given the airdrop results of previous projects, the disappointment was greater than expected, but continued progress will continue to strengthen the alignment of long-term interests between the protocol and users.