A Comprehensive Guide to Finding the Best NFT Projects in 2023: Tips and Strategies
Many early NFT investors have become millionaires almost overnight.
In April 2021, a Bored Ape Yacht Club (BAYC) NFT was sold for just 0.08 ETH. Less than a year later, the floor price reached 118 ETH, but how can we identify the top NFT projects? Naturally, not all projects have experienced the same level of success, which is why a smart investment in valuable NFTs will be successful. In this article, we cover everything from understanding the rationale for buying an NFT to discovering the hottest projects in order to identify top NFT projects.
Before delving into the topic of identifying top NFT projects, let’s review the concept of this type of digital token. NFTs are digital records that are stored on a blockchain like Ethereum. They prove ownership of various pieces of digital media such as art, video, music, game items, and even meme coins. Anyone can create, trade, or own them.
How can we identify top NFT projects?
To identify top NFT projects, you need to answer a few questions:
1. Why do you buy NFTs?
Top NFT projects have different meanings for different people. The first step in identifying what makes a good NFT project is to understand the reason for buying it. Only then can you find the NFT project that is suitable for you. Below are some common reasons why people buy NFTs.
Earning income from NFTs: It’s no secret that many people want to get rich quick by buying and selling NFTs. In fact, many people have made millions of dollars using NFTs. So, if this is why you’re buying NFTs, make sure to do your research and find low-priced projects with excellent growth prospects.
Artistic merit: For example, Tyler Hobbs and Mike Winkelmann (Beeple) are respected artists in their own right. They have sold NFTs for tens of millions of dollars and are pioneers in this space. Many investors want to own works that have proven artistic merit.
Of course, others are looking to invest in the next “Beeple” piece. Along with a desire to own a digital artwork that will one day be highly valuable, they love to support digital artists. It’s worth noting that the NFT art scene is thriving in the blockchain space.
Getting familiar with NFTs: The best way to learn about NFTs and identify top NFT projects is to dive into the space and even buy some for yourself. This way, you can practice using crypto wallets, making transactions on the blockchain, and securely storing NFTs.
If you’re new to this but don’t want to spend a lot of money on transaction fees, it’s better for beginners to start with blockchains that have cheaper fees compared to Ethereum, such as Polygon and Solana.
2. Where can new and exciting NFT projects be found?
Many people are currently promoting NFT projects, however, not all projects are created equal. While some may be the next big thing, others will be forgotten. This means you need to look for reliable sources and hidden gems. It’s not an easy task, but if you pay attention, you can find a new and exciting NFT project that is on the verge of exploding.
Popular Projects The next step in identifying top NFT projects is to identify popular projects. Which projects had the highest sales volume in the past 24 hours? Which are the top projects of the past week? By looking at the statistics of the largest NFT market, OpenSea, you can find the top projects of the past 24 hours (or week) to see what is currently gaining popularity. You can even evaluate more NFT projects on a website called CryptoSlam.
NFT Influencers: Every industry has experts. For the NFT space, you can find most of them on Crypto Twitter. There are successful entrepreneurs who have become NFT investors, leading digital artists, and even NFT avatars with a large following. By following and engaging with top people in the space, you can start learning about the space and even come across an exciting new project.
Here are some examples of top NFT influencers:
Artchick is a NFT collector with a pseudonym who has played a significant role in the success of the NFT project World of Women.
Elliot, known by some as the NFT Whisperer, specializes in game NFTs for income generation and has created complex strategies in NFT trading.
Alexis Ohanian is one of the co-founders of Reddit and was the first investor in the play-to-earn game Axie Infinity. He also focuses on the Polygon NFT ecosystem due to its low costs.
Punk6529 is known for their passionate reviews and Twitter discussions regarding the future of NFT space. As the owner of a CryptoPunk, they can clearly identify a trend earlier than others.
Kevin Rose founded the successful website Digg and has been part of the internet startup scene for a long time. It’s worth mentioning that he sold one of his generated art NFTs by Feedingzah to Tyler Hobbs for millions of dollars.
Snoop Dogg is notorious in the NFT space for promoting projects on Metaverse and owning many valuable NFTs himself.
3. How to evaluate top NFT projects?
Many factors affect the value of NFT projects. Depending on the NFT project, different factors may be more important than others. For example, utility is more important for a sports team NFT, while rarity is more important for art.
Utility: Utility is the real-world benefits added to an NFT, such as copyright for an image, access to exclusive content, and even airdrops. Dynamic NFTs in blockchain-based games like Axie Infinity are also popular, such as giving power or spells to gamers.
Rarity: Highly demanded NFTs with limited supply have much higher prices compared to projects without scarcity. While all NFTs are unique in their own way, they are often part of a thematic set of NFTs, such as the Bored Ape Yacht Club, which has 10,000 NFTs. This scarcity helps make a project more desirable.
Community: The larger the community of an NFT project, the easier it is to spread the project through word of mouth. Celebrities can also be a significant help for a project as they can share the project with millions of their followers.
Floor price: The floor price is the lowest price at which each NFT is sold in a collection. When the floor price is increasing, it is a positive indicator, and if it quickly decreases, it can be concerning.
Volume: The volume of NFT transactions in a collection is a good indicator of demand for the project. You can compare the volume of a particular project with other projects and also see if its volume has been on an upward or downward trend over time.
Estimated market cap: The estimated market value is a key metric that many NFT investors use to determine whether a project is overvalued or undervalued. You can find the estimated market value of hundreds of projects on the Rarity website.
Team: Does the founder and team have a proven track record? This is a positive sign that they are recognized as creators who produce valuable projects in the industry. While some investors prefer to know the real names and faces behind a project, others are comfortable with a completely fictitious team.
Roadmap: Are there any future collaborations, business opportunities, or project advancements? While some NFT projects are just collectibles like CryptoPunks and Ether Rocks, others are building metaverse worlds where NFTs can be used or adding real-world tools through other means.
Where should I look for early NFT projects?
You can also use various NFT platforms, programs, markets, and calendars to identify top NFT projects early on, such as:
NFT Calendar: The world’s first NFT calendar, NFT Calendar, covers notable releases, important events, and eye-catching drops. If you’re interested in finding early NFT releases, keep an eye on upcoming versions using the NFT Calendar provided by Business2Community and NFT Calendar, which offers details of upcoming weeks and months.
Twitter: Start by browsing information available on Twitter. Many web artists use Twitter to market their works and collections, so you can follow them to hear about upcoming drops. On the other hand, you can use different Twitter accounts that keep their followers informed about exciting projects in real-time.
Discord: It is the top-ranked program used by NFT fans to create communities. To use Discord, you need to create an account, join a specific Discord server, open your permissions on the server, and choose a communication channel. This way, you can connect with like-minded individuals and look for projects with higher interaction.
YouTube: Recently, YouTube announced that it is expanding its activities towards NFTs to allow users to “own” videos produced by creators. On YouTube, you can use different channels to engage in this area. For example, consider channels like NFT Zerk, Ryan D Crypto, Kosher Plug, Bento Boi, and Champ Crypto.
Crypto.com: This platform is built on the Crypto.com blockchain and does not receive any transaction fees for purchasing it. Use the Drops page to search for upcoming new projects. Also, subscribe to the mailing list to receive notifications about live broadcasts.
OpenSea Marketplace: It is the largest NFT marketplace in terms of asset selection and most widely used resource. Its monthly transaction volume is billions of dollars. OpenSea receives a 2.5% fee from each transaction. You need to open an account and use “Explore” to conduct your research and browse rankings to find out which projects are popular.
Binance Cryptocurrency Market: Binance is one of the top digital currency exchanges in the world. You can take advantage of its wide selection of assets and significant daily trading volume. The market charges a 2% transaction fee for buying. You need to register for an account, set up a wallet, and search for good projects.
Rarible: It is another useful source for finding future drops. Currently, you can only buy on its web platform. As for fees, buyers and sellers have to pay a 2.5% commission for purchasing. You need to synchronize your wallet to access and store your digital assets.
Nifty Gateway Marketplace: Nifty Gateway is known for its exclusive offers. It doesn’t charge any fees for buying, but sellers have to pay a 5% commission and a $0.30 transaction fee. You need to open an account and buy a wallet, although purchasing digital assets is optional.
SuperRare Market: SuperRare is another good option for unique art NFT markets. Here, you can find a collection of digital artworks created by prominent artists and creators. You need to create an account with SuperRare, search for projects, and use your digital wallet for NFT.
Final Words
Now that you know how to identify top NFT projects, you can follow influential NFT creators and stay in NFT markets for popular projects.
