How to evaluate early NFT projects

Extra effort to find potential NFT projects

Although everyone is talking 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.

So let’s get right down to it.

Look for upcoming and popular projects

You can follow upcoming projects on Twitter by searching the hashtag #NFT. In addition to Twitter, you can check out upcoming and trending NFT projects using these tools:

1. Oxalus (mainly Ethereum and Solana NFT)
2. NFT Drops Calendar (Ethereum, Solana, Flow chain, BNB chain)
3. Hyperspace and Magic Eden (Solana)
4. NFT Calendar (Ethereum, Solana, Flow chain, BNB chain)
5. Upcoming NFTs (mainly Ethereum and Solana NFTs)
6. 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 coins:

1. Icytools
2. NFT OnChained
3. Bit rate
4. Binance NFT
5. Crypto.com NFT

Let’s check out one of the tools for ourselves.

When you go to Oxalus’ upcoming NFTs, you will see future NFTs as below:

As you scroll down, you can see some upcoming NFTs for today and top 100 upcoming collections.

Once you’ve identified a project that looks promising, it’s time to move on to appraisal.

Presence of a community and supply

You can check out the social 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 specific project to see the numbers and charts as shown below:

This will give you a general idea of ​​the number and growth of the project’s community. But it’s always a good idea to check out the community yourself by going into Discord and Telegram.

Then you can check the total offer of the collection. The supply of NFTs affects how a collection is valued. The market value of each NFT tends to be lower for high supply pools. Low supply collections often have high floor prices due to their rarity and scarcity.

Project research

This is an important step. Visit the project’s website and social media to learn about the community, team, roadmap, tools, etc. We discussed this in detail in last week’s NFT recap. You can find it here.

Here are some parameters you can check for NFT collections that are new:

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.

To check the rarity of Ethereum and Solana NFTs, you can use rarity.tools and HowRare.

For BNB Chain NFTs, Rare board is a good resource. For example, let’s look at one Moonpets NFT on Rareboard:

The image above shows the characteristics of this particular NFT. Out of the 10,000 NFTs, only 0.02% have most of the mentioned characteristics. This means that only two NFTs share the same characteristics. Because of this, this NFT is rare and may command a higher price than more common NFTs from the same collection.

Important NFT measurements

Floor price: A floor price refers to the lowest price for digital goods on NFT marketplaces.

The higher the floor price of an NFT project, the greater the demand for it from society.

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 could suffer huge losses if the project loses appeal because liquidity will dry up.

Volume: The total traded volume can be used to determine whether an NFT project is in demand. The higher the volume, the more liquid the market.

Sale: NFT sales provide insight into past and current interest in an NFT collection.

It can be a sign of growing interest if an NFT collection shows a lot of recent sales. On the other hand, in the event that many NFT holders are selling and the floor price drops, it may 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 important if you are interested in investing in the NFT market. You must also make an effort to analyze and evaluate 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 into the NFT market.

We’ll be back next week with more exciting information about NFTs. Until then, stay tuned, hey!