Tracking the Best NFT Traders Guide

So what does this graph mean?

• Blue bars represent the daily volume in Eth of NFT sales from the smart money sector
• Red bars represent the daily volume in Eth of NFT investments (or spending) from the smart money sector
• The turquoise line tracks the daily difference between these sales and investments i.e. net profit of the smart money sector

Now we understand the data we can dive into actionable insights that can improve our returns.

1️⃣ Top performing NFT wallets consistently make profits

The smart money segment has made profits almost every day since September – shown by the turquoise line remaining above 0. We often talk about the importance of smart money, and this shows exactly why; because they consistently outperform the market.

2️⃣ Profits have been on a downwards trend

Whilst smart money has been making profits for a considerable time period, the amount has been decreasing over the last 3 months. We can see this by the downtrend of the turquoise line. This information signals that the market is maturing and that it is becoming increasingly difficult to make large gains. This stresses the importance of finding tools that allow you to gain a competitive edge over the market and highlights the current state of the NFT space.

3️⃣ Total activity (both buying and selling) has dramatically decreased

Total activity in the NFT market has also fallen, shown by the decreasing size of the red and blue bars through time. This indicates the sentiment of these top performers. As returns diminish, they become more likely to rotate into other sectors of crypto that may be outperforming NFTs. Whilst it looks like this is what is happening right now, markets operate in cycles and keeping an eye on the data can help us spot a reversal before everyone else.

☀️ Conclusion

Tracking the profits of top NFT wallets can reveal a large amount of information about the market and can help guide our sentiment, strategies and understanding of price movements. Nansen gives us the invaluable ability to do this by tracking profits from the top performing NFT wallets.