Track the Sales History of an NFT: Know How

To fully understand the value and potential future performance of a Non-Fungible Token (NFT), it’s essential to track its sales history. This information can offer valuable insights into the NFT’s past value, its popularity over time, and potential future performance.

Why is Tracking NFT Sales History Important?

Sales history gives you a comprehensive overview of an NFT’s past performance, which can be instrumental in making informed decisions about buying, selling, or trading. An NFT with a good sales history could indicate a sound investment, while an erratic or stagnant sales pattern could be a potential red flag.

In any investment, understanding the asset’s performance history is key to evaluating its potential. This truth holds in the NFT market as well.

It’s important to remember, just like in any other investment market, past performance does not necessarily predict future results. However, it does provide added context you can use when forming your investment strategy.

How to Track the Sales History of an NFT

1. Using NFT Marketplaces

Most NFT marketplaces have tracking systems that allow you to view the sales histories of individual NFTs. Major marketplaces like OpenSea, Mintable, and Rarible provide accessible information about previous NFT transactions.

On the desired NFT page, you may typically find information about when the NFT was created, who has owned it previously, and its previous and current selling prices. Some platforms also feature historical price graphs and performance analytics for comprehensive analysis.

2. Verifying on Blockchain

Blockchain, the technology underpinning NFTs, provides a transparent and public ledger of all transactions. This includes every buy, sell, or trade involving an NFT. You can view this information by using a blockchain explorer like Etherscan (for Ethereum-based NFTs).

To use it, you’ll need the address of the wallet that owns the NFT and the token ID of the NFT. Then, by searching for the wallet addresses associated with the NFT, you can see every transaction involving the token and build a history that way.

3. Using NFT Tracking and Evaluation Platforms

Platforms like NonFungible.com and CryptoSlam offer tracking tools that specifically help you track the sales history of an NFT. They provide various services such as sales history, pricing analytics, and trading volume, which are critical in evaluating the worthiness of an NFT investment.

Tips for Evaluating an NFT’s Sales History

When evaluating an NFT’s sales history, pay attention to significant price changes. If the NFT’s price has drastically increased or decreased in a short period, there might be a specific reason driving that trend.

Look also at how many times an NFT has been traded. NFTs that are traded frequently might be more popular, which can indicate a higher probability of reselling them in the future.

Remember, the role of an NFT’s sales history is to inform and guide your investment decisions. While it’s an important factor, also consider other variables like the project’s team and popularity, the demand and supply of the specific NFT, and the overall sentiment and trends in the NFT market.

Summing Up

Being able to track and analyze the sales history of NFTs is critical in the NFT trading market. With this knowledge, whether you are a beginner or an advanced trader, you are better equipped to make informed decisions and potentially reap greater returns from your NFT trading and investing activities.