With Bitcoin recently reaching a new all-time high, Ether doing the same soon after, and then meme coins and gaming coins pumping, it seems like now is not the best time for NFTs. But in fact, what is happening now is likely to be a perfect combination of conditions for the next explosive rise in prices of NFTs.
Let’s break it down into key elements.
It’s no secret that the crypto market goes in cycles. First, the price of Bitcoin goes up, then as people start taking out some profits from Bitcoin, they often move it to Eth, so it’s next to go up and finally we have an ‘altcoin season’, although this year this seemed to be split between ALTs, meme coins and NFTs.
We’re currently in the Bitcoin phase of the market cycle. A lot of people made substantial amounts of money from flipping NFTs during the summer when the crypto market was generally quite bearish and since Bitcoin started picking up from the beginning of October, a lot of the profits from those NFTs started pouring into crypto.
Bitcoin reached new all-time a couple of weeks ago and Eth did it a few days later. Although we’ve seen a bit of a retracement, Bitcoin is still holding strong above 60k and Eth around 4200 USD.
This will be the fuel for the next NFT run. We had one early this year, another one in the summer and the third phase is coming in the next few months. As people will start taking profits out of large-cap crypto, they will start looking for the next thing ready to pump… and NFTs will be one of the obvious choices (if not THE choice).
Yes, the latest meme coins craze started by Shiba Inu may end up being one of the best things for NFTs. Why? Let’s be honest – people who invest purely or mainly in coins like Shiba, Dogelon Mars, CumRocket or SafeMoon are not going to suddenly start thinking about tokenomics, charts and long-term utility? I don’t mean it in a negative or derogatory way but rather to highlight different types of investors. If you’re interested in meme coins, then most likely it’s because you’re hoping for large short-term gains and you probably want a bit of fun too. So where are you going to put the profits taken out of Shiba? NFTs are an obvious choice – they’re fun, a lot of the communities are great and there are opportunities to make 10-100x gains on regular basis.
It doesn’t matter what you think about Mark Zuckerberg or Facebook. If you haven’t seen the full keynote where he announced the rebranding from Facebook to Meta, I think you should. It literally gave me goosebumps.
Not because I’m a fan of Facebook or because I particularly like his vision of the metaverse. But rather because of the fact that one of the biggest big tech companies is going all-on into developing a metaverse and crypto and NFTs were mentioned multiple times during this keynote.
Right now, there are only around 200-300 million people using crypto and probably less than 1% of this number is trading NFTs. Facebook alone has close to 3 billion users. Crypto and NFT adoption in the coming months and years will be progressing at an exponential rate.
People often make the mistake of jumping into whatever is pumping at the moment. The trick to making really big gains is getting into projects before they pump.
NFTs are currently being hit quite hard. Not only their prices are down but also a lot of retail investors are going into meme coins, which is increasing Eth gas prices, which in turn makes minting and sales of low-cost NFTs harder. As an example, the mint price of a new NFT project is often set around 0.07 Eth. The current price of Eth is quite high, which is not helping, but on top of this, gas is often around 0.03 – 0.05 Eth, which is easily around 50% on top of the price of the NFT.
As a result of the above, a lot of new, really interesting projects are struggling to sell out. Also, prices of many established projects are down 30-50% compared to where they were just a few weeks ago. This is a perfect buying opportunity before everyone’s eyes turn back to NFTs – load up your bags now and watch the pump.
Of course, the most difficult thing is finding the projects which are most likely to be successful. In the last few weeks, the NFT market got absolutely flooded with new entries.
I always look for 4 main things:
Good artwork – original, interesting, created by a well-known artist or is simply appealing
Utility – is there any existing or upcoming utility (generating tokens, breeding, DAO, upcoming game etc.)
Solid basics – who’s in the team, is there a roadmap, regular and clear announcements etc.
Community – how many people they have in their Discord and/or Twitter, are they active users or just bots, how’s the atmosphere in their Discord, has the project been mentioned by any crypto influencers?
If a project ticks most of those boxes, I’ll try to get on the whitelist or look for good buying opportunities on OpenSea.
So which projects I’m currently looking at? You can check out my YouTube channel or Twitter for the most up-to-date info but here are a few NFTs, which I think have a huge potential for growth in the coming weeks and months.
(disclosure – I either invested in them or I’m actively looking to invest).
Jungle Freaks – great artwork, well-known artist, 100% hand-drawn, great community. It’s actually doing pretty well in the current market. Floor price was around 1.3 Eth at the time of writing, so didn’t really dip much but it has a ton of potential.
Awakened – really cool project, cyberpunk vibe, lots of utility. It’s definitely worth visiting their website. Long-term project with a lot of the features activating between 45 days and 6 months from the launch. They launched at the worst possible time so you can still get their ‘multipasses’ at or around mint price so around 0.09 Eth.
BearX – cool artwork, utility (token and breeding) and a HUGE amount of hype. Yes, they got hacked but a lot of big NFT projects got hacked recently and they handled the situation very well. Minting for this project is whitelist-only but it will take place in the next few days so keeps your eyes on potential good buys on OpenSea. Beware of the scams!
Rebel Rabbits – I just LOVE the artwork - they are cool as f*ck, end of. Relatively small project compared to the ones above but the artwork and roadmap look really cool and you can get them for around 0.07-0.09 Eth so I think it’s worth a shot.
SpaceApes – similar idea to incredibly successful Cyber Kongz or also very successful Kaiju Kingz. After the contract update on 18th November, every SpaceApe will generate tokens and there will be an option to breed them. More utility coming in the future. Not the cheapest project but the current floor price of around 0.8 Eth is pretty good if you consider that the most similar project is Kaiju Kingz and their floor price is over 4 Eth for a genesis Kaiju.
Kaiju Kingz – now we’re definitely getting into a territory of more pricey NFTs. Genesis Kaiju will set you back over 4 Eth (don’t confuse them with cheaper baby Kaijus) but their price after mint was around 3 Eth and recently they were trading around 6.5-7 Eth, so you can get kind of a bargain at the moment. The biggest benefit is that each genesis Kaiju generates 5 RWASTE token per day, which at the moment is over 50 USD per day or around 1500 USD per month in passive income.
Doge Pound – another pricey NFT – floor recently is bouncing between 2.8 and 3.3 Eth. One of the most well-known NFTs with a huge community and support from many big crypto influencers. Not cheap but definitely worth considering, especially as it’s likely to be one of safer NFT investments.
Finally, I just wanted to say – please be careful when buying NFTs. Many projects are getting hacked and there are plenty of scammers around e.g. fake mints, airdrops, fake collections on OpenSea etc. Whenever possible, try to follow links from official websites or Discords and keep an eye for any information about hacks and scams. You can also check out my video about avoiding NFT scams.
Hope you found this article interesting!
Disclaimer The content covered in this article is NOT to be considered investment advice. I’m NOT a financial adviser. These are only my own speculative opinions, ideas and theories. Do NOT trade or invest based purely upon the information presented in this article.