#Rivet utility drivers#

These NFTs will be easier to sell in the future, assuming they can maintain this liquidity. Of the top 10 NFTs by transaction volume, the highest cumulative transaction volume is MAYC with $1.068 billion, followed by Otherdeed with $897 million. This means that these NFTs lack liquidity, which will hinder their growth. Many NFTs issued on Ethereum are in a no-transaction state. While many have amazing, unique designs, the market is saturated and not every new collection can be the next CryptoPunks or CryptoKitties. With the rapid growth of NFTs, numerous projects are popping up. Lower trading volumes usually signal a bear market, while higher sales volumes mean there is less liquidity risk. Trading volume in the NFT market is an important indicator of market demand. While there is no hard-and-fast rule to evaluate an NFT project based on rarity, it is important to learn about and understand this dynamic. Rarity is also important within a collection and includes unique characteristics, properties and combinations. MeebitsвЂ™ floor price was 15 times lower than CryptoPunks. To create an easier entry point into NFTs, Larva Labs-the team behind the project-launched Meebits, a 3d voxel collection with 20,000 NFTs. In the NFT world, a supply of around 8,500 NFTs in a collection is considered very small, whereas there are some major projects, such as Meebits, that have up to 20,000.Д¬ryptoPunks is the earliest NFT project on Ethereum and, as of June 17, the floor price was 48.9 ETH. Rarity is one of the most basic data metrics, and is completely separate from the inherent quality, utility or aesthetics of the project.Д«asically, supply and demand indicates that the rarer the NFT, the higher its value. They also have a background in large traditional tech firms, like Google and Facebook, another criteria to look for.ДЇootprint Analytics вЂ“ Ranking of NFT Collections

#Rivet utility drivers#

These are important drivers that impact the value of an NFT project.ДЄnother team that meets the above criteria is Chiru Labs, which created Azuki. the ability to maintain valuation and VC funding in the bear market.The team was founded in February 2021 and created BAYC, acquired CryptoPunks and Meebits in March 2022, issued ApeCoin to pave the way for the Otherside project, then drove the development of the Otherside project.Д®ven as we entered the bear market, the team closed a $450 million round in March with a $4 billion valuation. Look no further than the team behind Bored Ape Yacht Club and Otherdeed as a perfect example-Yuga Labs. What exactly should you keep an eye out for?

The teamвЂ™s background and experience are crucial to determining an NFT projectвЂ™s value. Even if a collection catches your eye, here are some indicators to help you evaluate a projectвЂ™s potential. Is the key picking the one that looks coolest? Far from it. While the value and sustainability of the NFT market is a divisive topic, the big-name players do believe there is a science to choosing promising collections and projects. However, NFTs are quickly becoming an alternative asset class as their transaction volume grows, household names enter the market, and VCs fund more projects. Most people lose money trying to trade them in good conditions, never mind in a bear market.