Original Text: Lim Yu Qian, CoinGecko
Translation: Nancy, LianGuaiNews
Recently, CoinGecko released an NFT research report, which analyzed the overall profits (realized and estimated unrealized) of the top 100 Ethereum NFT traders according to the NFTGO rankings. It was found that the top 15 NFT traders have accumulated profits of $299 million, with major profits coming from blue-chip NFTs such as CryptoPunks, Art Blocks, Bored Ape Yacht Club, and Meebits.
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Below is the original text:
Is NFT a good investment?
So far, top NFT traders have earned profits ranging from 5221 ETH to 55291 ETH from investing in Ethereum NFTs, which, at the time of writing this article (when the price of ETH was approximately $1838), were worth $9.6 million to $101.63 million. Although NFT tycoons have made huge profits through NFTs, it does not mean that ordinary investors can replicate the same returns. Besides requiring skilled expertise, good timing and luck are also necessary.
In terms of realized profits, a trader named SethS ranks first, earning a total of 55291 ETH (worth $101.63 million at the time of writing this article). These profits are more than three times that of the second-ranked trader, accumulated from nine different addresses, holding a large number of CrytoPunks and CrytoPunks V1. Punks OTC ranks second with a profit of 15838 ETH (approximately $29.11 million). Mr.703 follows closely with a profit of 14624 ETH, making him the third highest-earning NFT trader.
In terms of profit strategies, the top 15 NFT traders have earned more than 94.5% of their profits from blue-chip NFT collections such as Larva Labs, Yuga Labs, and Art Blocks. Among them, CryptoPunks accounts for 70.6% of the profits, ranking first; the generative art project Art Blocks ranks second in top traders’ profits, accounting for 12.2%; followed by BAYC and Meebits, accounting for 5.5% and 3.4% respectively.
Among them, 11 NFT traders have earned millions of dollars from investments in CryptoPunks, with 8 of them earning more than half of the profits. It is worth mentioning that a trader named “0x7eb2..3f6b” earned a profit of 7992 ETH by selling CryptoPunk #5822 to Chain CEO DeeLianGuaik, ranking fifth. CryptoPunk #5822 is also one of the most expensive NFTs in history. However, the traders 0xef6d..4a74, Jimmy McNelis, Akira, and Rudy Adler seem to be less interested in CryptoPunks.
In addition to CryptoPunks, 5 NFT traders have also generated millions of dollars in profits from Art Blocks. Among them, a trader named “Akira” earned 5984 ETH solely from generative art projects. Next is Wealthsimple founder Rudy Adler, who made a profit of 5320 ETH from Art Blocks, and 0xef6d..4a74 earned 4656 ETH.
Furthermore, only 3 NFT traders have earned millions of dollars from their investments in BAYC. In addition to NFT collector Jimmy McNelis (j1my) earning a profit of 3030 ETH, Franklin (@franklinisbored) and Pranksy generated profits of 2616 ETH and 2265 ETH respectively.
Overall, the above report also indicates that top NFT traders tend to profit from betting on blue-chip NFTs at a low price in the early stages. This also suggests that NFTs are only suitable for a few investors who can keenly identify blue-chip potential stocks or for NFT investors who can engage in diversified investments.