Most NFT traders are not profitable. Those that are, dominate the market.
Nansen allows us to track these top performers (or “Smart Money”), understanding when they are buying, when they are selling and exactly how much profit they are marking.
In doing so we can generate actionable information that we can use to improve our own strategies and overall profits.
With Nansen’s On-Chain data, you can secure an edge in the crypto and NFT markets:
🤲 Exciting New Opportunities. See where funds are moving their money.
💥 Perform Due Diligence. Get more information on projects or tokens.
🌀 Defend Your Positions. Create smart alerts to track over 100 million ETH wallets.
🔥 Track The Biggest NFT Traders. See what the most profitable NFT wallets are investing in.
To grow your crypto portfolio today check out the Nansen website. Currently, they are running a 7 day trial for just $9. Link here 👇
⏰ In A Rush?
💰 I Wanna Be A Trillionaire…
Users that logged into certain platforms yesterday might have been surprised to see their accounts had ballooned into trillion dollar investments!
For about an hour from 21:00 UTC, CoinMarketCap prices erroneously spiked causing confusion and quite some entertainment.
Here’s what do you need to know:
CoinMarketCap (CMC) is a price-tracking website for crypto assets. It collates real-time information from many sources including centralized exchanges, and in April 2020 was acquired by Binance Capital Mgmt.
Many products access CMC data, from off-chain wallet browsers and data analytics to on-chain smart contracts, where an oracle is required to pass the data onto the blockchain.
If you had checked an Ethereum wallet balance using Ethplorer or an altcoin price on Dextools last night, you may have been temporarily confronted with thirteen digits. You couldn’t trust Trust Wallet and Tether depegged to ~$500 million per USDT!
CMC hasn’t explained the cause of the spike yet, but rumours suggest it might be linked to a Java exploit identified last week in a library called Log4j. It’s possible CMC didn’t update their Java code…
It’s not yet known if anybody lost any money due to the glitch, but it raises an important point – software and humans should have a fallback method if something doesn’t seem right, especially with a price feed.
The simplest remedy here was to check the CoinGecko website, which was unaffected.
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
💠 Tracking Profits of the Best NFT Traders
✅ Smart Money Investment Returns
Nansen.ai: 15/12/2021 - Smart Money Investment Returns
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.
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.
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🔫 Into The Galaverse
If you spent the weekend watching your favorite altcoins bleed, you may have missed Gala Games big event, Into The Galaverse.
The event was held in Las Vegas Dec 11th-12th, with a virtual day on December 13th and gamers agree, the announcements were a big deal.
The Walking Dead: Empires was just one of the new games announced.
TWD will be a blockchain based multiplayer survival game. The main premise of the game is to purchase land and then team up with your friends to defend it from the walking dead villains.
Another big reveal at the event was the world’s first AAA first-person shooter game on the blockchain, Last Expedition. This has been a recent topic of discussion among gamers in the crypto space calling for a AAA level first-person shooter game and Gala appears to be delivering. You can see the game here.
The Sims creator Will Wright announced that he and his team at Gallium Studios will assist Gala Games with building out the VoxVerse. The Mirandus Vox Collection, which will feature a real play-to-earn utility across Gala Games Town Star & soon Mirandus, sold out immediately upon release.
Gala Games also announced a partnership with C2 Ventures to launch a $100 million blockchain gaming fund.
C2 Ventures is led by Ciara Sun, the former Head of Listing & Blockchain Investments at Huobi Global.
There were more announcements and more excitement with performances from bands like Maroon 5, Alice Cooper, Billy Idol, Stone Temple Pilots, etc. Swarms of zombies and robots danced on stage and Snoop Dogg even joined in the Vox dance party. If Gala Games delivers on their promises like they do on entertainment for the event, holders of the Gala token have a wild ride ahead.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.