Thread by @mevcollector

OpenSea has gained more than 40k users in the past week alone and broke its record volume the past weekend.

Dune Analytics: dune.xyz/rchen8/opensea

Some thoughts:

1. As more users enter NFTs, more liquidity is present allowing for quicker parabolic price action. Most of this liquidity is directed towards new projects, which now easily hit 3x mint and 2.5k+ holders in the first few days.

2. Most noticeable example is @KoalaAgencyNFT, which went from 0.05 ETH mint to 1+ ETH floor and 4k+ holders in about 3 days.

3. Some legendary collectors/smart money continue to hit (e.g. @0x541nt1 with the 40 ETH/1764% ROI), but now tend to be a lagging indicator. Uncommon/new collectors now lead the mints as they quickly ape.

4. Another example is @BBBotsNFT that launched and went from 0.035 ETH mint to 0.2 ETH floor quickly. Yet only a few legendary collectors minted in a rather large 12-minute window (most buys were on secondary).

5. Perhaps legendary collectors/whales are rotating into Art Blocks and blue chips, which allow for larger sizing and certainty, or are using new wallets?
Either way it tends to be a lagging indicator, especially with how fast new projects mint.

6. As solely following smart money might be too late, it might be better to follow money/demand in general. @icy_tools is a good tool that lets you follow demand, by tracking top mints/volume, which easily let me find @PlasmaBears and @superbunniesnft before big smart money buys.

tldr;
New users ape new projects, which go up only as there's more liquidity/demand v. supply. Therefore, follow money/demand in general and buy more when smart money buys. Sell more aggressively as well, since new users are likely to be euphoric.