NFTs Resilient, GMX Fees Soar, & BTC Holders Capitulate

JAN 25, 2022 • 3 Min Read

Joo Kian

DISCLOSURE: DELPHI VENTURES HAS INVESTED IN BTC, ETH, AVAX, AND SYNDICATEDAO. MEMBERS OF OUR TEAM ALSO HOLD GMX, BAYC, AND NFTS. THESE STATEMENTS ARE INTENDED TO DISCLOSE ANY CONFLICT OF INTEREST AND SHOULD NOT BE MISCONSTRUED AS A RECOMMENDATION TO PURCHASE ANY TOKEN. THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND YOU SHOULD NOT MAKE DECISIONS BASED SOLELY ON IT. THIS IS NOT INVESTMENT ADVICE.

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NFTs Not Affected by Macro Uncertainty

  • Marquee NFT brands have stayed resilient amid all the recent macro uncertainty. While ETH has fallen 35% since the start of the year, NFTs have grown in price (in ETH terms). Since NFTs are denominated in ETH, however, the projects are still exposed to the underlying price of ETH.
  • NFTs that have better branding like BAYC and CloneX seem to be performing better than the rest. The floor price of BAYC ran up to 89 ETH on the speculation that Yuga Labs may be raising funds at a $5B valuation. Of course, take this rumor with a grain of salt until it is confirmed.
  • For more depth on NFTs, see our Members-only weekly NFT Insights to keep up on the latest trends.
NFT Fees and Royalties to Exceed $300M in Jan
  • With the rise of NFT volumes, OpenSea and NFT projects have been earning massive fees. OpenSea has made $93M in marketplace fees, while projects have earned a cumulative $202M in royalty fees in January alone.
  • NFTs have grown remarkably attractive to the public. Search interest for NFTs is at all-time highs and ranked higher than “crypto,” so we can expect volumes to continue increasing if the interest keeps up.
  • The high fees earned have also led to a theory that OpenSea and various projects that earned royalties in ETH have been selling it off, which might have played a part in ETH’s downward price movement.
  • Note: OpenSea charges 2.5% of volume as marketplace fees and a variable % of volume as royalty fee dependent on the projects.
GMX Daily Fees Hit $900K

  • Volatile markets have driven volume to GMX, resulting in a volume surge on both Arbitrum and Avalanche.
  • Combined daily volume on both chains hit $700M on January 21st, the highest the platform has ever seen. This led to the platform earning $900k in fees for GMX and GLP stakers.
  • GMX’s launch on Avalanche has boosted their daily volume. Avalanche now accounts for 30-50% of daily volume done on GMX.
  • To learn more about GMX and its unique oracle model, see our Delphi Pro report.
  • Note: Fees on the platform are distributed 70% to GLP Liquidity Providers and 30% to GMX stakers.
Investors Start to Realize Losses

  • Investors have capitulated on the recent downward movement of BTC to $35k. As fear strikes the hearts of even seasoned crypto investors, $2.5B of net losses have been realized on the day that BTC hit $35k.
  • This level of net realized losses hasn’t been seen since June of last year. With the FOMC meetings ahead of us, we will have to wait to see if the Feds show us anything unexpected. Aside from that, the Russian and Ukraine conflict might lead to a war that can further complicate the current state of the markets.
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