On-chain Research on GenieSwap, an NFT MarketPlace Aggregator
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April 12th, 2022

GenieSwap, the first NFT marketplace aggregator, sounded like a pretty good project to invest in during the NFT boom. Genie primarily works by bringing all the different NFT platforms together and allowing us to buy NFTs using a single interface and a single smart contract.

However, things haven’t been good for the project lately; let’s dive into the data and try finding investment opportunities.

The Global NFT Market Condition

The NFT boom is gone, and I got a gut feeling the floor prices of NFTs might start crashing anytime soon. Here’s some data from NFTgo showing the falling volume of the NFT market. We’re more than 83% down from the January high, and I think we really did hit a pinnacle in January this year and, maybe that was it. 

Here’s the falling total volume (from over $3.3 Billion in January to $500 Million in March) of the NFT markets after the top in January.

The Merge is Coming

Trials and test runs of the Ethereum Merge scheduled a couple of months from now have all been successful. This means we’re most likely going to see it happening in June or July, just waiting for a final announcement.

It will be exciting to see where this triple halving for ETH takes the market. However, with the Merge happening, there’ll be a 90% reduction in ETH issuance, and the locked ETH (not even the rewards) will not be released, creating a supply shock.

Imagine what will happen when prices drive up? ETH hitting all-time highs and with it, the gas needed (in $$$) to mint NFTs hitting all-time highs as well.

GenieSwap On-Chain Data

Genie was pretty popular back in the day when the total NFT market was hitting all-time highs. Genie hit over 2000+ NFT transactions every day; however, things didn’t stay the same. As the NFT market kept crashing the traders or buyers on Genie kept falling, averaging to over 10-20 every day more recently.

GenieSwap Multi-Asset Swap: Dune
GenieSwap Multi-Asset Swap: Dune

I primarily think the platform drove traffic during its initial days when the marketing was super good. However, when things cooled down, the traffic on the marketplace aggregator died out as well. Here’s the number of NFT transfers with successful calls on the platform.

GenieSwap Transfer Ownership: Dune
GenieSwap Transfer Ownership: Dune

Revenue Model of Genie

Usually, the crypto swap platforms charge a small fee for swapping crypto and provide a part of it to Liquidity providers. 

With Genie, there is a similar model used. GenieSwap charges a flat 5% fee on every NFT purchase. Even though it can be a good source of income for the platform, it’s a lot to pay as a fee for someone who’s just trying to buy an NFT.

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Ethereum Address
0x9176587bE04A10491C8d58d24A2941329395d9CC
Content Digest
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