Many people use the bidding function when collecting their NFTs. Are traders making profits when they use bidding, and what collection has the most bidding volume? Let's dive in and find the answers.
Reasons to Use WETH Bid
- Pay how much you think the NFT is worth.
- Bid for NFTs efficiently and save time by bidding on multiple NFTs simultaneously with the same amount of WETH.
- Save costs by skipping gas fees.
Guide for Bidding on NFTs
To bid on an NFT you will need some WETH. You can exchange your ETH for WETH to get started. After you acquire your WETH, go to the NFT you desire and click on the "Make offer" button.
A box will pop up and ask you to enter the amount of WETH you are willing to bid. You can input any amount of WETH and select the expiration date for your offer. You can set a short offer expiration period so you don't forget your outstanding WETH offers. After that, click "Make offer" and you are ready to go.
If you'd like to buy into an NFT in a collection, but don't have a specific NFT in mind, you can save time by setting up a collection offer. Instead of making an offer on every individual NFT in that collection, you'll make one offer that applies to all NFTs in the collection. This function became available in June 2022 on OpenSea. Here's everything you need to know about the bidding game, how profitable the top bidders are and what we can learn from them.
WETH Bid Transaction Count
The bid count of individual transactions with WETH started increasing exponentially at the end of June. This is the time when Opensea introduced the collection offer function instead of having to make an offer on every single NFT by yourself.
Looksrare was previously dominating the bid transactions by contributing more than 70% overall daily. Now the majority is contributed by Opensea. Rarible and X2Y2 are negligible in recent bid transactions since both of them have had a very low bid transaction count.
WETH Bid Volume
In terms of WETH volume, Looksrare contributes more than 80% compared to all the marketplaces. It grew to more than 200k WETH at the beginning of 2022. However, the trend has now decayed quickly and has a very low WETH volume.
From the normalized WETH volume chart, both X2Y2 and OpenSea started to consume up Looksrare volume. X2Y2 also offers quite some incentive to list your NFT assets on its marketplace. This attracts users to list over there and bid over certain collections. Since both X2Y2 and Rarible have very low bid volume and transactions, we will dive into only Opensea and Looksrare and compare their bidders.
Top 10 NFT Collections with the Highest WETH Volume on OpenSea & LooksRare
The chart above shows the top 10 NFT collections that have had the highest WETH volume on OpenSea. In the collections above, 9 out of 10 collections are blue-chip NFTs. The majority of bidders on OpenSea are focusing on blue-chip collections in large bidding volume.
The case is different on LooksRare, there are less blue-chip collections with a large bid volume. The top is Terraforms which is from the art category. According to NFTGo.io, this collection has been marked for suspicious activities like wash trading. LooksRare contains more wash trading volume than organic bidding compared to OpenSea.
Top 20 OpenSea Bidders & LooksRare Bidders
Among the top 20 OpenSea bidders, only 2 have had more transactions directly purchasing the NFT on secondary while the remaining 18 traders focused more on bidding only to get their NFTs. The top bidders bid over 800 time
In terms of selling volume and profit, only 1 out of 20 bidders are in loss while all the other bidders are in profit. There are also some bidders with no selling volume and we categorize them into collectors and flippers. Flippers represent those in profit and have selling volume. Collectors are those with only bid transactions but without any selling volume.
The top 20 bidders on LooksRare have only bid transactions and never buy directly on the secondary market. The majority of LooksRare bidders also have a large bidding transaction count. Anticipation is that those bidders are trying to wash trade some of the NFTs for LooksRare rewards in LOOKS tokens.
At first glance, the statistics in the Sell Volume vs. Profit chart above don't seem to make any sense. 19 out of 20 bidders on LooksRare are in loss and have incredibly high selling volume. Those bidders are selling their NFTs at a loss. Those bidders likely just wanted to get the LooksRare reward and the majority of bid transactions were not organic.
Conclusion
Bidding is a very useful function in purchasing your NFTs when the price is too high for the NFT you desire. From the analysis, we can see that most organic bidding volume is toward blue-chip collections, and the top bidders on Opensea are making a profit. Why not try bidding next time?
Note: The above information is for informational purposes only. Investing in digital assets such as NFTs and cryptocurrency brings with it a high degree of risk. Please consult with a financial advisor before making any investment decisions. NFTGo.io does not provide financial advice and is not responsible for any losses incurred as a result of investing in digital assets.