So how do we analyze NFT Markets to see what’s a good buy and what isn’t?
There’s not current tool like Coinmarketcap that you can just click and absorb a ton of information within.
Due to NFT’s being fairly new, there’s still a lot of work to be done in terms of research tools.
BUT there’s a good way to do it.
Usually, I start with Opensea Rankings.
This gives you a snapshot of what’s increased in buyer volume, what’s been there for a while etc.
Just because something has pumped doesn’t mean it’s a good project. It makes me want to investigate.
A 230% rise on The sandbox land? Hmm..we can dig deeper.
I’ll click on The Sandbox and sort by highest last sales.
I see a couple of large 75-85 ETH buys. Wow.
I’ll click and try find the buyer and check his recent buy activity.
Oh look, it’s the buyer of the Batman piece for 302.5 ETH! along with a few others.
Looks like he’s gone around doing some big NFT purchases.
Large sales that push Project volumes up are not sustainable. It means some large whales are interested BUT it doesn’t mean that other whales will enter.
Unless there’ 100’s of secondary market sales happening that’s pushing these projects up there, it doesn’t get me interested.
Lot’s of investors, as opposed to 1, means there’s some sustainable interest.
It also has to NOT be a presale. Presales are once off fomo events, I need to make sure it’s the secondary market that’s convincing people to trade.
That means the project is attracting people past the presale round.
Eg, Superrare has been up there for 6 months+.
So when you check the graph,
You can see for 2 years straight Art has been increasing generally in value.
2 years is a long time in crypto world and seeing stable increase like this makes me thing hmmm there’s something here that new people continue to love.
So I’ll look deeper into recent art sales, the artists, etc.
nonfungible.com is also a good research tool to see recent sales data.
You can click into a project like Superrare and see the recent sales. Then check out the buyer/seller wallets along with the art and artists.
There’s also project specific sites.
Like for Gods Unchained, there’s tokentrove.io where you can click certain cards and see the price graphs change.
This is great to see what’s a good entry point.
Each project has it’s own data sites mostly built by community members as they can pull the data out from blockchain API.
There’s even more insightful tools like this by NFTcryptonews.com that shows you max build height of joined land.
There’s also my discord chat that has sales bots that ping you when sales are made.
If you’re REALLY into it and want to know on the daily what’s selling, you can join here.
Or maybe you want to know what Wearables in Decentraland are hot?
Again, most above sites are made by community members and as you join and explore you’ll find them.