The next development in the cryptocurrency market is investing in non-fungible tokens (NFTs). But with so many projects in the area, it can be challenging to stay on top of things and simple to get duped.
Crypto arts, music, video games, and TV series are currently the biggest developments in the NFT industry. Many individuals mistakenly believe that purchasing an NFT is equivalent to purchasing a web link to an online image or video clip. Holding an NFT actually entitles you to a number of additional advantages, including access to special communities, ownership of intellectual property, eligibility for exclusive material and airdrops, and more. You also have the only right to sell that NFT.
The cryptographically distinct tokens known as non-fungible tokens, or NFTs, are linked to both digital and physical content and serve as evidence of ownership, authenticity, or group membership. In video games, NFTs provide players the ability to genuinely own the one-of-a-kind digital items they buy, such as pet monsters or starships, and also give them the freedom to trade or sell those NFTs when they want to.
Data from the NFT tracking website, CryptoSlam, shows that the worldwide NFT market recorded sales of approximately $333 million in October 2022. Another well-known website for monitoring statistics on NFTs is DappRadar, which monitors Blue Chip NFTs as well as the larger NFT and decentralized application economies.
Data from the NFT tracking website, CryptoSlam, shows that the worldwide NFT market recorded sales of approximately $333 million in October 2022.
A Blue Chip NFT: What is it?
In conventional finance, a blue chip company is one that is well-known, firmly established, and financially stable. According to Investopedia, blue-chip businesses are renowned for withstanding downturns and continuing to make a profit despite unfavorable economic conditions.
Blue-chip stocks are regarded as reasonably secure investments with a track record of accomplishment and steady growth. Although blue chips are consistently stable, they are unlikely to produce the same high returns as potentially riskier investments. This also applies to blue chip NFTs, which are typical to ordinary NFTs.
What Makes a Blue-Chip NFT?
What would be regarded as the distinguishing features of blue chips in the NFT business as it is not a good idea to attribute the traits of traditional blue-chip stocks to blue-chip NFTs? The following criteria are important for investors to consider:
If you’re looking for a blue-chip NFT, the content should be your top priority. Is it a piece of art, an avatar, some music, a video file, or an in-game item? Is it original and original or is it a copy of an already existing project?
The majority of the NFT market is made up of NFT avatars, also known as profile pictures (NFT PFPs), which are the hottest trend right now. As a result, many recently launched projects are copies of CryptoPunks, which invented the NFT avatar style. If you want to know if a project is distinct, look at NFT collections that are already on their way to blue-chip status.
The Name recognition
A project that is viewed as valuable is significantly more likely to be launched by artists who had a significant following before joining the NFT sector. For instance, Beeple was already a well-known digital artist before he dipped his toes into the NFT world. Beeple made history in March 2021 when he sold one NFT artwork for a record-breaking $69 million at Christie’s.
Sales volume and the floor price
An NFT becomes more valuable as its floor price rises. An NFT may be a candidate for blue-chip classification when it has a high floor price and substantial trading activity. A project’s sales volume, which shows it has natural buoyancy, is what justifies a high floor price. For instance, the NFTs issued by Bored Ape Yacht Club or CryptoPunks can be regarded as blue chips due to their floor price and sales volume.
A project’s sales volume, which shows it has natural buoyancy, is what justifies a high floor price.
The development team and the vision
As vital as or perhaps even more so than the artist is the development team behind a given collection. The smart contract that produces the NFT and its utility features is programmed by the developers. When determining the worth of a development team’s work, the team’s expertise and track record are essential. When a project begins, anonymous development teams raise suspicion and are more likely to vanish. It is easier to have faith in a project’s success when developers are transparent and engaged in its development, even after it has been released.
Use cases and usefulness
On the blockchain, NFTs have developed much beyond the simplest cartoon profile photos. In order to generate buzz and guarantee the longevity of a project, several projects have included new use cases and practical features. Use cases that certain initiatives provide holders with include exclusive merchandise, early access to new NFT releases, invitations to actual events, and more.
The endorsements from investors or celebrities
Early on in a project’s life, celebrity support can either make or kill it. NFTs have received endorsements from stars such as Jimmy Fallon, Steph Curry, Reese Witherspoon, Snoop Dogg, and Post Malone. Their influence can enable a project to become a blue-chip endeavor. Of course, you should still conduct your own research before committing to a project out of a celebrity endorsement.
Popularity and involvement in the community
An NFT project’s potential can often be determined by the community it has created. The future of the project is more hopeful the more substantial and involved a community is. Similar to joining a sports team or a fraternity or sorority in college. Another example of a utility is a community: NFT holders may receive exclusive access to a private community in some projects. For instance, only owners of Bored Ape NFTs are permitted entry to the private community at the Bored Ape Yacht Club.
The future of the project is more hopeful the more substantial and involved a community is.
Few examples of Blue chip NFTs
Now that we’ve discussed some of the qualities that define a blue-chip NFT, let’s look at some of the best NFT collections that are generally regarded as having attained that status.
Larva Labs, a development company, produced CryptoPunks, which is regarded as one of the first NFT collections. 10,000 photos have been tokenized as NFTs for use on the Ethereum blockchain as part of CryptoPunks. A unique pixel avatar is yours exclusively if you possess a CryptoPunks NFT. The original Ethereum NFTs are known as “CryptoPunks,” and they were established in 2017—years before the general public became interested in rare digital treasures. Unbelievably, in 2017, CryptoPunks was made available without charge. When they were first launched, the two-person Larva Labs team did not even know about Ethereum’s ERC-721 non-fungible token standard. The 9,000 CryptoPunks distributed to the general public were quickly snapped up by Ethereum wallet owners, while Larva Labs kept the remaining 9,000.
When they were first launched, the two-person Larva Labs team did not even know about Ethereum’s ERC-721 non-fungible token standard.
Over the following three years, NFT production progressively increased, but in late 2020 and particularly early 2021, demand for these digital artifacts which are reportedly rare soared. The secondary market value for CryptoPunks skyrocketed, resulting in NFT sales of millions of dollars, auctions at Christie’s and Sotheby’s, and a plethora of CryptoPunks being used as Twitter profile images.
The largest NFT collection, however, is Bored Ape Yacht Club, despite the fact that CryptoPunks was one of the earliest.
2. Bored Ape Yacht Club
The 10,000 profile pictures that make up the Bored Ape Yacht Club were created by Yuga Labs and are stored as NFTs on the Ethereum blockchain. Collectors of the Bored Ape have a drawing of an ape that appears uninterested and has features and accessories that were chosen at random. Images are never identical to one another.
You can join the titular “club” and receive privileges by purchasing a Bored Ape Yacht Club NFT. Including the following variant sets, according to data from CryptoSlam, Bored Ape NFTs achieved a trading volume of more than $750 million by January 2022. Athletes, musicians, and others began using Bored Apes as their preferred Twitter NFT avatar.
Doodles, a line of NFTs with artwork by Burnt Toast, was introduced in October 2021. Doodles come in a bright variety of colors, characteristics, and sizes, and there are 10,000 of them in the collection. Voting for experiences and activations supported by the Doodles Community Treasury is possible for each Doodle.
Doodles come in a bright variety of colours, characteristics, and sizes, and there are 10,000 of them in the collection.
Pharrell Williams, a musician, and producer, joined Doodles as Chief Brand Officer in September, according to a report by Doodles. Williams intends to act as executive producer for a music album that will be inspired by the initiative. Doodles NFT sales increased by 1,200% in that same month and were worth $704 million at the time.
Azuki, which was introduced in January and just reached a new milestone, quickly rose to become one of the most popular NFT initiatives introduced in 2022 in terms of the overall trading volume. The January launch of the Ethereum-based profile image project resulted in its first secondary sale reaching $1 million by March 2022.
Azuki #9605 broke the project’s previous record sale, which was Azuki #4666 on February 13 for 204 ETH, or about $586,000 at the time, selling for 420.69 ETH, or $1.42 million at the time.
In 2022, the Ethereum collection with an anime theme rose to the top of the NFT initiatives.
3. Twin Flames
Twin Flames, which debuted in February 2021, was created as a homage to artist Justin Aversano’s twin sibling, who died while still in utero. 100 photographs of several sets of twins are included in the collection Twin Flames. The images, which were captured in various locations across the world between 2017 and 2018, depict a wide range of people in the settings and attire of their choice, all of whom are connected by the fact that they are twins.
Twin Flames are highly sought-after Ethereum-based NFTs that were just recently minted. Twin Flames NFTs are owned by Snoop Dogg and Gary Vaynerchuk, and as of October 2021, according to OpenSea, the trade volume for the photo collection was close to $13 million. One NFT from the collection was sold that year for 506 ETH, or around $1.9 million.
CryptoKitties, developed by Dapper Labs, are non-fungible tokens that were initially created on the Ethereum blockchain using the ERC721 token standard. Before the introduction of ERC721, all blockchain-based tokens were interchangeable or fungible, making any Bitcoin or Ethereum token the same as every other. Unique, non-fungible tokens could be created using ERC721.
Each CryptoKitty is different, and a smart contract contains the digital genome of each one. Its phenotype, or outward appearance, is determined by the immutable genotype encoded in the smart contract. Any two CryptoKitties can be crossed using a genetic algorithm to produce a child with its particular qualities (or “attributes”).
CryptoKitties became so well-liked that it hampered the ability of other platform users to quickly validate their transactions.
Due to the Ethereum network’s limited capacity to execute numerous transactions at once, a wait immediately formed as a result of CryptoKitties’ rapid rise in popularity. Breeding CryptoKitties became so well-liked that it hampered the ability of other platform users to quickly validate their transactions.
CryptoKitties made the announcement that the company was switching to the specialized blockchain Flow in May 2020.
Blue Chip NFTs come and go, just like stocks. As early this year’s cryptocurrency bear market took hold, the once unstoppable Bored Ape Yacht club’s value fell. Apes cost $1.3 million to buy in January; as of November 2022, that JPEG is worth $69,000. Popular artist Justin Bieber.