I’m interested in the idea of measuring the general NFT space and turning it into an index where traders who are bullish on NFTs could sell shares to those who think it’s a bubble.
An initial naive implementation might be to take the top 10 coins by market cap listed by Coingecko as NFT coins. Perhaps top 20 makes more sense, as it would include Axie’s governance token, Rarible, and more names.
It might make more sense to instead put actual high-priced NFTs into the index.
Hi!
I’m not sure whether it would be nice to take only the top sales. In my opinion Nfts succeeds, when it’s not just huge sales, of weird kitten pics, but used by regular people. So the whole sales volume of the top 20 exchanges could be used. Here’s a list: https://cryptoslam.io/
But I’m not sure where they get the data…
Is it too complicated to just add up all the erc721 sales with the sales on flow, BSC and wax?
I am guessing it would not be super complicated, although each marketplace might require its own method of disentangling the sale transaction and amount of ETH (or whatever) paid. I do see possible issues with this, such as being easy for a whale to game the latest sales figure by wash-trading with themselves for an absurdly high ETH price.
This nft volume tracker is a great idea.
I think there would be demand even if we started with only tracking one popular platform, and then later expanded to an index for a bunch of them.
I wouldn’t stress about the fake volume, I think it is disincentivised because a buyer would look at the wash trading and be less inclined to buy that NFT. And it would be hard to co-ordinate enough wash-trading purely to game our index.
It seems like it would be easiest to track an index of relevant protocol tokens rather than sales volume, since it’s difficult to figure out where to get the data, and the space is moving so quickly that you’ll miss new sales channels that emerge. Meanwhile, the value of NFT protocol tokens go up in parallel with the sales of NFTs, so it’s a decent proxy, and not too hard to weight and rebalance on a regular basis.
Maybe a market cap weighted index of ten tokens? E.g.:
ENJ
MANA
FLOW
SAND
WAX
AXS
GALA
RARI
NFTX
ERN
Or whatever mix makes sense based on whatever criteria. These were just plucked haphazardly from CoinGecko. Top NFT & Collectible Tokens by Market Capitalization - CoinGecko
Isn’t that what I proposed as the naive implementation in the OP?
Yep, you’re right. 
I wandered off in thinking about NFT indices and by the time I got back to the thread I forgot that the idea was already detailed to begin with. It seeped pretty well into my unconscious, haha.
I realize this isn’t an UMA project, but I actually started an NFT platform index using TokenSets a few weeks ago. If anyone is interested I have details here: Collectible $MUG NFT Collection - Homebrew.Finance, you can reach me on our Discord server or Twitter.