The world of NFTs is growing every day, with new projects and platforms being released regularly, it can be challenging to keep track of all the best ones. But don’t you worry: we’ve got you covered.
It can be tough to determine which projects are worth your time and even tougher to know when a project is no longer active. That's why we've put together this guide to help you find the best NFT projects out there.
This guide will show you how to find great NFT projects – and what to look out for when evaluating them. But before that, let's answer the most basic yet important questions of them all...
What is an NFT?
NFTs, or non-fungible tokens, are unique digital assets that can’t simply be duplicated or replaced. They're often used to represent digital collectibles, such as in games like CryptoKitties and CryptoPunks.
NFTs are created – or “minted” – on networks called blockchains. For example the Ethereum blockchain allows you to create, distribute, and verify the authenticity of a digital asset (like digital art) without needing a third party. You’re even able to place a monetary value on your asset and put items up for sale. This makes NFTs a trustworthy and secure way to store and trade digital collectibles.
The easiest way to think of an NFT is to think about how they mirror our reality: in the “world” of the metaverse, NFTs are your personal “things,” cryptocurrency is the “money” you use to pay for them, and digital tokens are the “receipts” used to track and trade them. Simple!
What Are NFT Projects?
Any project that uses NFTs to create digital collectibles or assets is an NFT project. These can be games, platforms, or anything else that uses NFTs.
The best way to find NFT projects is to browse blockchain platforms like OpenSea or SuperRare. These platforms allow for the creation and distribution of NFTs, so they're a great place to find new projects.
If you're new to NFTs, we recommend starting with Ethereum. It's the largest and most popular blockchain for NFTs, and it has a wide variety of projects built on top of it.
How to Evaluate NFT Projects
When evaluating NFT projects, there are a few things you need to look at. These include the project's utility, its team, and its security.
The “utility” of an NFT project refers to the functions or uses it carries by owning one or more of its tokens or digital assets. . For example, owning an NFT from a certain project may grant you access to real-world events, or give you voting rights on the direction of the project. A good NFT project should have a clear language around what it can be used for other than just speculation and trading.
The team behind a project is essential, as they're the ones who will be building and supporting it. A good team should have experience in NFTs, blockchain, and product development. Ideally, they need to be verified as trustworthy people with a solid track record of success – or at the very least the skills, transparency, and dedication to execute their vision.
Security is critical for any blockchain project. A good project will have measures to protect against attacks and theft. Your tokens are only safe if the project is secure.
Don’t be afraid to do a deep dive on the project by checking out their social media accounts. What is the community saying? Are they supportive? Do they have any concerns? Are people excited about the project? While hype doesn’t equal validity, it's important to determine if the project is in fact real.
The project's website is another crucial factor to look at, and it should be well-made and easy to use. The website should also have all the information you need about the project, including its team, whitepaper, and roadmap.
Most NFT projects use Discord as a place to build their community. Join their server and see what the community is like. See how active they are and how responsive the team is. This should give you an idea if they are real people and not just scammers.
Head over to OpeanSea and look at the ratio of “unique holders” to “total holders.” If it's 50 percent or more, that's a good sign the project is being used and has real value. However, if it's less than 25 percent, it may mean the project isn’t doing so well.
While researching NFT projects on OpenSea, check their activity volume. This is the total amount of tokens that have been traded on the platform. If it's high, people are using and trading them. If the project gets 15-20 sales per hour, it's healthy.
Read the project's white paper. This will give you a deep understanding of the project and its goals. It should also list all the team members and their qualifications. It will also outline the project's roadmap and plans to achieve its goals.
Look at the token metrics for the project. They should include the number of tokens in circulation, the price per token, and the total market cap. Look for projects with a low market cap and a high cost per token.
There are a variety of applications for NFTs. Some of the most popular ones include games, collectibles, art, and real estate.
While NFTs in games have become a controversial topic in the gaming community, it’s no secret that they are being used more and more in games. Take games like Axie Infinity, CryptoKitties, and Decentraland for example people are making real-world money through the use of unique and valuable in-game items.
Collectibles are another widespread use case for NFTs, and they allow you to create and own unique items that can be traded or sold. Some of the most popular collectible NFTs are CryptoKitties, CryptoPunks, etc.
NFTs are also being used to create and sell art, allowing artists to create and sell their work without a third party. Some of the most famous art galleries that use NFTs are Maecenas, DADA, and others.
Finally, real estate is another application for NFTs, and it allows you to own and trade property securely and trustlessly. Some of the most popular projects that use NFTs for real estate are Decentraland, BitProperty, and others.
NFTs are still a relatively new technology, and many projects are being developed. It's not easy to decide which projects are worth investing in. Here are some tips to help you:
(1) Do Your Research
The first step is to do your research. Make sure you understand the project and its goals. The whitepaper is an excellent place to start, but you should also check out the team, website, Discord, and OpenSea.
(2) Look for Healthy Projects
When researching projects, look for healthy ones. This includes projects with a low market cap and a high price per token. It also includes projects with a high level of activity on OpenSea.
(3) Use Caution
When investing in NFTs, use caution. There is a lot of speculation in the NFT market, and prices can change quickly. Make sure you do your research and only invest what you can afford to lose.
NFTs are a game-changing technology that change how we interact with digital assets. They can revolutionize many industries, including gaming, collectibles, art, and real estate. There are many projects being developed in this space, so our advice is to thoroughly do your research before investing. Happy NFTing LOOP fam!