Almost a decade ago, nobody knew terms like metaverse, decentralization, cryptocurrencies, and NFTs. However, today, these terms are used extensively. On top of this, popular NFT projects like Bored Apes Yacht Club and CryptoPunks have attracted billions of investment.
Last year, $44 billion worth of Ethereum was attacked by NFT marketplaces and collections alone! Further, everybody is trying to own a bit of this market for their own collections. Keeping this in mind, we are going to look at the future trends in this industry. We’ll also talk about how and when you should enter the NFT market.
NFT or Non-Fungible Tokens are digital items that can be bought and sold by using cryptocurrencies. This is done on blockchain technology. In this term, non-fungible refers to the fact that every item is different from another. This means that even if the items might look similar there would still be some differences.
The value and popularity of every item or NFT would take a different direction. From a technical point of view, NFTs make it possible for individuals to purchase and sell ownership of unique digital items like drawing, moving pictures, songs, memes, 3D art, or anything else that might be available in the digital world.
Apart from this, there are also people who are trying to digitize ownership of several non-digital assets like luxury watches and houses. Given this information, one big question that a lot of people face is when one should enter the domain of NFTs.
When Should I Enter the NFT Domain?
When it comes to answering this question, many people would advise acting as soon as possible. This is specifically true for people who follow the path of investing first and harvesting later.
Sadly, the answer to this question is a bit more complex. Ideally, your investment in NFTs should follow an intelligent pattern. A good jumping-off point would be to judge the fame and popularity of NFTs from collections. But you would have to be quite wealthy to afford that.
Thankfully, there are also some other options that can be explored. You should look to purchase in the early stages. This means that you should focus your energy on finding and tracking capable NFT projects before they even launch and start minting.
In this case, minting refers to a scenario where the person who is minting is the first individual to take ownership of an item by entering into the blockchain. These types of NFT collections offer whitelist spots through competitions or raffles. This helps in guaranteeing ownership of some of their items to their followers.
In some cases, one might even get discounted prices to the whitelisted buyers for minting. This ensures that the person who gets whitelisted gets the first advantage. To understand all of this, let’s consider an example.
There was a recent project named Laid Back llamas. This project offered an exclusive 1-day minting period to their whitelists. When the public sale started, everything sold out in less than 2 minutes. In less than a month, the entire collection had traded over 2700 Eth.
The main conclusion that can be drawn from this example is that there are several things that lead to the success of particular NFT projects. The factors are the purpose of the collection, the story behind the project, the art, and the community.
Before we close off for the day, let’s take another example. You might be familiar with the name of Megaland Aliens. It is an early-stage project that might expose one to a great start in the NFT world.
This project is trending right now and will launch in the second half of February. The project has a unique artistic style and story behind it. The art is developed by a Canadian artist who takes up a surrealistic approach for creating portraits of creatures that look like aliens.
The project also has an interesting story attached to it that has been shared on the website. The story is a shared dream by many people on earth. According to the social media posts, the collection is benefiting from dream theories given by Carl Jung and the art style of Salvador Dali.
Beyond this, the Megaland Aliens team has also provided a good roadmap to transfer the project direction to owners. This would allow everyone to contribute to the success of the entire collection.