WETH Offer Acceptance Rate Reaches ATH
The acceptance rate of WETH offers for Ethereum-based NFTs hit a new all-time high today, according to data from NFT Statistics (@punk9059). This surge is likely tied to the macro crypto volatility in the markets today.
NFT Statistics, the Director of Research at Proof, shared the information in a tweet this morning. According to his data, the ratio of WETH offers to market buys spiked over 0.4 (40%). The previous high was just over 0.3 (30%) in early October.
Thus far today we've seen the highest percentage of WETH volume on OpenSea vs ETH volume ever.— NFTstatistics.eth (@punk9059) November 9, 2022
This means that sellers are accepting existing bids as opposed to buyers buying at sellers' offer prices. pic.twitter.com/oahbIlz9h9
Let's take a look at some specific collections, with a focus on the number of WETH offers accepted versus total sales.
- Bored Ape Yacht Club: 7 WETH offers out of 11 sales (63.6%)
- CryptoPunks*: 2 WETH offers out of 8 sales (25%)
- Azuki: 9 WETH offers out of 15 sales (60%)
- DigiDaigaku: 2 WETH offers out of 5 sales (40%)
- Moonbirds: 10 WETH offers out of 14 sales (71%)
- Squiggles: 6 WETH offers out of 12 sales (50%)
*Punk metrics based on bids accepted vs market buys.
So Moonbirds owners are "capitulating" the most, with Punk owners the least.
Another important takeaway from the high-level data is the general trend line. The WETH ratio seems to be moving steadily up as this year progresses. The rate was in the 0.05-0.1 range from January to May (bull market) but has been grinding up since. Since October, the ratio has been in the 0.2-0.3 range, indicating that 1 of every 3-4 sales is someone taking a WETH offer.
How can an NFT trader use this information?
Well, consider making WETH offers for NFTs instead of market buying. This trend will likely continue as long as the crypto volatility continues.