This week’s NFT Roundup discusses finding potential NFT collections early on and how to use tools to assist you in your assessment and analysis.
Extra Efforts to Find Potential NFT Projects
Although everyone talks about Non-Fungible Tokens (NFTs), few know how to find and evaluate one. Before we continue, we recommend that you review last week’s post on what to look for before investing in your next NFT project. Today we discuss how to find potential NFT projects and analyze them early on.
So, let’s get right to business.
Look for Upcoming and Trending Projects
You can follow upcoming projects on Twitter by searching for the hashtag #NFT. In addition to Twitter, you can check out upcoming and trending NFT projects using these tools:
- Oxalus (Mainly Ethereum and Solana NFTs)
- NFT Drops Calendar (Ethereum, Solana, Flow chain, BNB Chain)
- Hyperspace and Magic Eden (Solana)
- NFT Calendar (Ethereum, Solana, Flow chain, BNB Chain)
- Upcoming NFT (Mainly Ethereum and Solana NFTs)
- NFT Calendar from NFT Evening (All)
In addition to the above, you can also check out the following sites and tools for trending NFTs on mint:
Let’s check out one of the tools for ourselves.
When you head over to Oxalus’s upcoming NFTs, you will see future NFTs as below:
Scrolling down, you can see some upcoming NFTs for today and the top 100 forthcoming collections.
Once you’ve identified a project that looks promising, it’s time to move on to assessment.
Presence of a Community and Supply
You can check out the socials of an NFT project, such as its Twitter profile and Discord server. The social accounts can also be checked on Oxalus by clicking on a particular project to view the numbers and charts as shown below:
This will give you a general idea about the number and growth of the project’s community. But it is always wise to check out the community for yourself by actually getting into Discord and Telegram.
Next, check out the total supply of the collection. The supply of NFTs affects how a collection is valued. The market value of each NFT tends to be lower for collections with high supply. Low-supply collections often have high floor prices due to their rarity and scarcity.
This is an important step. Visit the project’s website and social media to learn about its community, team, roadmap, utilities, etc. We discussed this in detail in last week’s NFT roundup. You can find it here.
Here are some parameters you can check for NFT collections that are on mint:
Checking NFT Rarity
NFT rarity indicates how valuable an NFT is. It is common (but not always) for collectors to seek out the rarest NFTs from a project. An extremely rare NFT can be extremely valuable.
The picture above shows the attributes of this particular NFT. Out of the 10,000 NFTs, only 0.02% have most of the attributes mentioned. This means that only two NFTs share the same attributes. Due to this, this NFT is rare and may fetch a higher price than more common NFTs from the same collection.
Essential NFT Metrics
Floor Price: A floor price refers to the lowest price for digital items on NFT marketplaces.
The higher the floor price of an NFT project, the more demand it has from the community.
Ceiling Price: This refers to the cost of the most expensive NFT in the collection.
It is possible for an NFT collection’s price ceiling to skyrocket if demand for the project increases. However, investors looking to sell can suffer huge losses if the project loses appeal because liquidity will dry up.
Volume: The total volume traded can be used to determine whether an NFT project is currently in demand. The higher the volume, the more liquid the market is.
Sales: NFT sales provide insight into past and current interest in an NFT collection.
It could be a sign of increasing interest if an NFT collection shows many recent sales. On the other hand, in case many NFT holders are selling and the floor price is declining, it could indicate falling demand or even panic selling.
Depending on the blockchain the NFT is created on, you can find these metrics on sites like Icytools, Binance NFT, Moby or Bitdegree.
Keeping track of upcoming NFTs is essential if you’re interested in investing in the NFT market. You also need to put in the effort to analyze and assess projects if you hope to reap benefits from your investment.
Today, we discussed researching NFT collections. Hopefully, this will prepare you to take your next big step in the NFT market.
We’ll be back next week with more exciting information about NFTs. Until then, stay tuned, buh-bye!