Find out why so many people are swapping NFTs
NFT swapping is not a new phenomenon in the collector’s community. However, with the constant launch of new NFT collections, swapping is becoming exponentially more lucrative…for some.
In this article, we will take a look at what NFT swapping is, what the end goal is, and recent examples of such swaps.
What is NFT swapping?
NFT swapping refers to the process of buying an NFT and quickly selling it for a larger amount of money. It’s a known practice among all sorts of collectible items. However, with NFTs, sometimes the profit margin can be significantly higher.
As new NFT collections arrive on the market by the minute, more and more investors are turning to the option of making a profit by swapping NFTs. One of the easiest and most sure ways to make a profit through swapping is to secure an NFT from a new collection that has the potential to become a big hit among collectors.
While it’s never easy to determine whether a new collection will be successful or not, many investors have benefited from jumping in on a new release and reselling for a higher price. The end goal of this maneuver is to grab an NFT at a low floor price and sell later when either the floor price has increased or the value of the particular token is on the rise.
In recent weeks, DappRadar data shows that some significant swaps have happened, where collectors have successfully sold NFTs for more than they bought them for. Looking at several recent DappRadar Top 10 NFT Sales, we see that sometimes, NFT swapping involves exorbitant amounts of money.
One recent example is Peg 103, an Ethereum-based NFT, part of the Pegz collection featured in two consecutive rankings. In the first week of August, Peg 103 made number ten on the ranking, switching owners for 269 WETH, or a little over $ 820,000.
The following week, Peg 103 skyrocketed to second place after a sale worth 420 ETH, or about $1.37 million. This is a clear example of how NFT swapping can bring profits in the hundreds of thousands and sometimes even millions of dollars.
Another interesting detail to observe here is the wallet that purchased Peg 103 initially and sold it a week later. According to DappRadar Portfolio, this wallet currently has no other NFTs in it and only has ETH and WETH. This is a clear signal that the owner of this wallet used it simply as an NFT swapping tool, and this is not his collector’s address.
NFT flipping will continue dominating the space as one of the easy methods to make a decent amount of money fast. However, it is not easy to filter through the numerous new collections, or even to get your hands on minting an original NFT in order to push it on the secondary market.
If you are curious about NFT valuations and whether you have a chance at selling one of your tokens for a higher price than you what you bought it for, you can always take a look at the DappRadar NFT Value Estimator tool.