coinedition.com
The total royalties paid out to $NFT projects on Ethereum have reached 699,816 $ETH, which is roughly $1.29 billion. Deranzxc, an analyst for on-chain analytics firm Nansen, shared his in-depth on-chain research into $NFT royalties and other trends in the broader $NFT market.
Nansen took to Twitter earlier to share the results of deranzxc’s on-chain research, which revealed that 699,816 $ETH had been disbursed to $NFT artists as royalties. According to Nansen, the conversion rate takes into account the price of Ether at the time of the NFTs’ sale, which values the lifetime royalties at a whopping $1.8 billion.
Of the total royalties, 25.9% or 181,252 $ETH were paid in 2021. The majority of the royalties were disbursed last year, with more than 64% of the nearly 700,000 $ETH paid out. The royalties paid in 2023 accounted for 9.4% of the lifetime amount.
According to Nansen, royalties received by $NFT projects and artists this year are far lower than the previous years, despite the $NFT volume being similar to that of 2022. The year-to-date (YTD) metrics showed that 2023 has already recorded 50.6% of the sales that occurred last year. But the royalties earned from those sales only amounted to 14.7% of 2022’s figure.
The Nansen analyst further highlighted that the effective fee rate for royalties had trended downwards, from an average of 2.5% last year to 0.6% as of July 2023. Of all the royalties paid to $NFT projects so far, Yuga Labs collectively received 9.4%. Yuga Labs is the web3 firm behind leading $NFT projects such as Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC).