Created NFT Collections
Overview
This indicator tracks historically the number of new NFT collections that have been created. There are two series. The first one, “Total NFT Collections” is the cumulative number of new NFT collections created over time. The second series, “New NFT Collections” is the amount of new NFT collections that have been created each day.
How can I use it?
While the previous indicator, Volume Traded by NFTs, was tracking the demand of the NFT market, the Created NFT Collection measures the supply of the NFT market.
As can be seen in the screenshot above, the supply of the market has two clear phases. Previously to 2022 less than 300 collections were usually created each day. After the start of 2022, it is usual to see days where the number of new collections are between 500 to 1000 collections. Mismatches between the demand (trading volume) and supply (new collections created) are a cause of changes in prices of NFT collections. When the supply of NFT collections is greater than the demand for them, the excess supply can lead to a decrease in the price of NFT collections. This is because sellers will be willing to lower the price in order to attract more buyers and reduce the surplus.
On the other hand, when the demand for NFT collections is greater than the supply, the excess demand can lead to an increase in the price of NFT collections. This is because buyers are willing to pay a higher price in order to obtain the NFT collections, and sellers are able to increase the price in order to maximize their profits.
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