On-chain Analysis: Nakamigos NFT
When many people believed that the hype around NFTs was fading away, the Nakamigos Collection emerged and reignited the NFT trend.
Introduction
Nakamigos is a blue-chip collection that has been creating a lot of buzz lately in the world of NFT. The project quickly gained popularity last month, with a surge in transaction volume that caught the attention of many in the NFT community.
As a result of this sudden surge in popularity, M3TA was curious and decided to do some research on the Nakamigos NFT Collection.
Our analysis focused on three primary objectives:
To provide meaningful insights into the project
To investigate its impact on the NFT market
To evaluate how interested the NFT community is in the collection
What is Nakamigos NFT?
Nakamigos is an exclusive collection of 20,000 pixelated face NFTs created by HiFo Labs. The characters are 24x24 pixels and share a similar style with CryptoPunks.
As a Nakamigos holder, you are granted the same commercial rights (or license) as Yuga Labs provided for CryptoPunks.
The name "Nakamigos" is a clever play on words, combining the surname of Bitcoin's pseudonymous founder, Satoshi "Nakamoto," with "amigos," the Spanish word for friends. This gives Nakamigos the meaning of "Friends of Nakamoto”, a term that encapsulates the spirit of ‘camaraderie’ among those inspired by Nakamoto's vision.
Camaraderie, in simpler terms, refers to the feeling of friendship, trust, and togetherness among people who share common interests or experiences.
Despite HiFo Labs being mysterious with no presence on social media except for Twitter, the Nakamigos NFT collection has gained significant popularity among collectors looking for a unique and visually stunning NFT.
When it was first released on March 23, some Nakamigos NFTs were sold for millions of dollars through a Dutch auction and secondary sales.
Analysis
Data as of Apr 18, 2023.
If you spot any issues with this Report, please let us know here.
Take a look at Nakamigos On-chain Analysis in this dashboard here.
Transaction Volume
Nakamigos has taken the NFT market by storm since its initial mint on March 23, 2023. In just 30 days, the platform has made a significant impact, with transaction volume totaling over $52 million as of April 18.
Despite experiencing a peak in transaction volume on March 4, 2022, the project continues to attract attention and maintains its position as a top trending NFT on icy.tools. This achievement is a testament to the platform's robust community, which has been able to sustain interest despite a limited social media presence.
After monitoring Nagamigos' transaction count and volume across multiple marketplaces, we found that the majority of activities had taken place on Blur and OpenSea. While the volume on Blur was slightly higher than on OpenSea, the number of transactions on OpenSea was slightly greater.
Our data suggest that a small group of traders may be responsible for the larger trades on Blur, which could be an indication of wash trading.
Wash Trading
While the wash trading volume for Nakamigos represents just 1.35% of the total trading volume, which is relatively low compared to other blue-chip NFTs, our initial suspicion has been confirmed - most of the wash trading activity seems to be concentrated on the Blur.io marketplace.
This could be due to the fact that Blur doesn't impose any fees on NFT transactions.
Nakamigos Price
While the transaction volume and count for the project peaked and subsided around April 03, 2023, the average price has remained relatively stable. Only in the days following April 09, 2023 did the price show a slight decline.
However, due to the project's youth and the limited data available, it's difficult to determine the overall trend with certainty.
Holding Duration
Our analysis revealed that nearly half of Nakamigos' users held onto their NFTs for up to four days. Given that the collection is less than a month old and is associated with Satoshi Nakamoto, the founder of Bitcoin, it is not surprising that many users are speculative traders. With such a popular and newsworthy background, there is likely to be a high demand for these NFTs, which can drive up prices and enable traders to earn greater profits.
Where to Trade Nakamigos?
When it comes to buying and selling on NFT marketplaces, we've noticed a trend: On OpenSea, sellers tend to sell their items at the price they set, while on Blur, buyers tend to purchase at the price they offered. So, if you're looking to sell your NFTs, it's a good idea to do so on OpenSea. On the other hand, if you're looking to buy, Blur might be a better option.
It's worth noting, however, that this gap between bid sales and ask sales seems to be shrinking over time.
Conclusion
In short, the Nakamigos Collection is a rapidly growing NFT project that has gained a strong community despite a limited social media presence. The high prices of its NFTs have not affected its popularity on icy.tools, demonstrating the continued interest and support from its community. Additionally, although there may be wash trading occurring on Blur, it has a minimal impact on NFT prices, making Nakamigos a good choice for short-term NFT traders. Hence, our analysis shows that OpenSea is the best platform for sellers, while Blur is better for buyers. Overall, the Nakamigos Collection is a significant player in the NFT market and is worth monitoring as the market continues to develop.
Disclaimer
The views expressed herein are for informational purposes only and should not be considered as investment advice. They may not necessarily represent the opinions of M3TA. As every investment and trading opportunity carries risk, you should conduct your own research before making any decisions. M3TA assumes no responsibility for our users' investment activities or their profits or losses. The articles, data, and content provided by M3TA should not be relied upon for any investment-related decisions. We do not advise investing funds you cannot afford to lose.
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