NiftyNoon: Can Former NFT “Blue Chips” Ever Recover?
As the market reflects upon last NFT market caps, many have begun to wonder if recovery is possible (July 26, 2023)
Nifty Thought
The myth of the NFT blue chip has been dispelled. The once mighty titans of Doodles, Clone X, and even Bored Ape Yacht Club have all fallen significantly in the last year alone. As the market reflects on the extreme price volatility these collections have faced, a natural question arises: is this a generational buying opportunity or simply a falling knife? Frankly, the speculative NFT bubble of 2021 and 2022 has resulted in prices entirely detached from reality. Anchoring the value of these collections to those highs is irrational. The true “bottom” for any NFT anywhere is zero. Most startups, particularly those in emerging technologies, fail before ever achieving product market fit. To expect any current NFT project to succeed in the long run is not simply an expectation the project will be an aberration in web3; it is an expectation it will be an aberration in the history of technology.
Most reading these newsletters are likely to agree that the total market cap of digital collectibles five years from now will be many times larger than what it is today. However, it is also very likely that the market cap of today’s existing digital collectibles will only continue to shrink over time. With this in mind, the best way someone can position themselves to benefit on the tailwinds of NFT success is to simply buy the cryptocurrencies they are priced in rather than the NFTs themselves.
Highlighted News
Market cap of top NFT projects over time (August 2021 to July 2023):
https://twitter.com/waleswoosh/status/1683811085025959942?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Project and Community News
A thread on the next steps in the evolution from Fingerprints DAO to on-chain governance:
https://twitter.com/fingerprintsdao/status/1683609743267381248?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
LooksRare shares season 2 airdrop details:
https://twitter.com/looksrare/status/1683833484312453126?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Is it still fair to call these NFTs blue chip if they fall 60%-95% against ETH?:
https://twitter.com/bobbyong/status/1683667938765848577?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Cyber Kongz and Ronin Network are joining forces:
https://twitter.com/cyberkongz/status/1683875730348802049?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
XCOPY piece receives 130 ETH 1-year loan:
https://twitter.com/nftfi/status/1683910814976147456?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Super rare artist leaves final emotional note as an NFT:
https://twitter.com/troyfitzpatric/status/1683441856208678914?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
After a few weeks off, it does feel like we're back in the mode of chaining big sales together as another 25 BAYC dumped in the past hour:
https://twitter.com/punk9059/status/1683843645831802882?s=46&t=Hb-nBT0zonE82bFfQEj7Cg
Opepen Edition 4 set 010 just sold for 5.50 ETH - $10,208:
https://twitter.com/vangoyaa/status/1683772890552979458?s=46&t=0wecaO-EP3PW8JWdCAssUg
Quick Stats:
Blur ETH Daily Volume: 3,736 ETH (▼ 34.11%)
OpenSea ETH Daily Volume: 1,019 ETH (▼ 25.46%)
BTC: $29,201.67 (▲ 0.16%)
ETH: $1,852.71 (▲ 0.08%)
Solana: $23.45 (▲ 1.30%)
Polygon: $0.71 (▼ 2.47%)
NFT Daily Winners:
🌈 Doodles: 1.62 ETH (▲ 5.45%)
👩🏻 Milady Maker: 2.52 ETH (▲ 1.61%)
🦉 Moonbirds: 1.74 ETH (▲ 1.16%)
🏴☠️ Captainz: 5.50 ETH (▲ 1.14%)
⛰️ Otherdeeds: 0.59 ETH (▲ 0.09%)
🏳️🌈 Chromie Squiggles: 9.50 ETH (► 0.00%)
NFT Daily Losers:
⛩️ Azuki: 4.74 ETH (▼ 0.22%)
🧬 Clone X: 1.65 ETH (▼ 0.42%)
🚬 CryptoPunks: 47.69 ETH (▼ 0.63%)
🐧 Pudgy Penguins: 3.98 ETH (▼ 0.87%)
🦧 Bored Ape Yacht Club: 30.49 ETH (▼ 1.58%)
🐈⬛ VeeFriends: 1.72 ETH (▼ 2.85%)
🧟 Mutant Ape Yacht Club: 5.53 ETH (▼ 2.94%)
Notes:
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