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).
