Is the NFT Bear Market Finally Ending?
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The time to cop some discounted NFTs is now!
gm!
The light at the end of the tunnel may be approaching. It’s been a rough couple of weeks — feels like years in NFT time (if you know, you know). But a lot of signs are pointing to that fact that the NFT bull run is gearing up. First let’s take a look at why and then I’ll discuss how I’m positioning myself for it.
UPDATE: JrnyCrypto just uploaded this today (Nov 15th):
The Signs
There’s a few indicators that money will be flowing back to NFTs. First is some nice data posted by @NFTLlama:
You can see in the above chart that the Volume of NFT sales spiked yesterday (Nov 13th) which is a good sign. It means that as crypto seems to be topping out (for now) people are shuffling back to NFTs and sweeping the floor on some undervalued projects (more on that later).
Below you can see that ETH is signaling a drop on the daily chart. You can see according to the TMO it’s in Overbought territory and is beginning its descent. Whether this holds or is just a small correction we will have to wait and see. Just like with stocks, if the 5 EMA crosses below the 20 SMA it’ll most likely enter a Stage 4 Decline.
So that’s what’s happening on the money / investing side of it all, now let’s take a look on what’s happening on the social side of things. The air is definitely charged with NFTs crackling in the zeitgeist these days…
As you can see from the above Google Trends chart, searches for “how to buy nft” are soaring. This is no doubt a product of normies hearing about NFTs in coverage/discussions of the Metaverses after the Facebook announcement AND the fact that Coinbase and other big companies are announcing plans to launch their own NFT Marketplaces (which I previously covered in another post).
When Coinbase launches its platform, it’ll be a gamechanger because it’ll bridge the gap between the NFT world and normies who have crypto accounts, have heard murmurings about NFTs, but have absolutely no clue how to buy NFTs the way the space is currently setup.
Join the Coinbase NFT waitlist here:
The VeVe app is the closest thing to an easy entry into NFTs as you can get right now (maybe NiftyGateway as well, but not every big or new project is listed on there). But even Veve has it’s limitations right now, such as not being able to remove your money from the app’s ecosystem and numerous glitches and bad design choices in the app itself. Not to mention it’s a first come first served basis so if you don’t click the Buy Now button EXACTLY at the second the sale opens, you’re SOL, not mention that even then you have a slim chance with all the bots and people connecting their Androids to the computer to manipulate the purchasing mechanism. But at least there’s no gas wars when buying here so at least there’s that.
But again, it’s also about awareness. I have a friends who are big Star Wars fans yet had no clue the first ever official Star Wars NFT dropped last week (I was lucky enough to snag the R2D2 but didn’t get the Mickey and Walt one that I really really wanted). Just to give you an idea of the current state of the VeVe NFT space, I purchased the R2D2 for 60 gems (the in app currency — 1 gem=$1) and it is currently selling for 1.6k! That Mickey and Walt one I mentioned… sold for 333 and is now going for 6.6K!! Luckily, they have plans to switch the app over to the Ethereum network via ImmutableX and allow you to withdraw your gains.
When the NFT space has easier accessibility, which is only steps away, we’re likely to see an NFT boom similar to what happened with Crypto back in 2017. Now you might be thinking you missed the boat on NFTs because you don’t have a Bored Ape or a Cool Cat, but it’s still VERY early in the space.
So NFTs are gonna be huge in the near future, what about right now? …
Time to board the NFT Train!
While NFTs began as mostly PFP (profile pic) projects, their real strength lies in in their utility. Whether it’s access to online games, real world, functions, DAO voting, etc… the applications for them are endless and community members are now looking for more than just a new piece of art for their Twitter avatar. So here are a few starter tips for finding a good NFT project and avoiding any rug pulls aka scam projects.
FOLLOW NFT INFLUENCERS
It’s smart to start a CryptoTwitter List to organize the NFT influencers that you want to follow. To help you get started, here’s the link to the list I created for this purpose:
Also, since everything on the blockchain is public, you can do some light sleuthing and follow the Influencer’s crypto wallet(s) to see what projects they’re buying into before they’ve announced it on their socials. There are a lot of tools and sites out there to help you manage all this.
Just be aware that you can airdrop NFTs to anyone’s wallet address, so some shady folks will send over one or more of their NFTs to make it look like that influencer aped in when in reality it’s all just part of their scam. That’s why it’s a good idea to really dig into the Etherscan tx info and do your DD.
JOIN THE PROJECT’S COMMUNITY (via their DISCORD)
One of the most important aspects of DYOR is taking the temperature of the community of an NFT project. The best way to do that is by joining their Discord server. You’ll always want to make sure the numbers of their members (and Twitter followers) are genuine and not bots and feel out out active the project’s Team is in the chat as well as how good that are at hitting their target dates, roadmap milestones, and communicating with their members.
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**NOTE: When joining an NFT project’s Discord IMMEDIATELY go to turn off Privacy Setting and TURN OFF “Allow Direct Messages” or you’ll be bombarded with scam DMs.
!!! NEVER EVER EVER UNDER ANY CIRCUMSTANCES CLICK A LINK OR MINT AN NFT FROM A DM MESSAGE !!!
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Look for projects with an underlying UTILITY
As I mentioned, a PFP alone is not enough reason to enter an NFT project unless you really truly just love the art. Some things to look for are the following:
- DAO (Decentralized Autonomous Organization)
- Metaverse Plans
- NFT Staking
- Utility Tokens
- Real World Utility
-Additional Community Access
- Parternships
- Other NFT Whitelist access for holders
I wont go into detail on any of these as they vary by project, so do your own research. Most of this info should be in their Roadmap, although older projects are adding these as they begin their Roadmap 2.0 so again, do some research and see what the project is offering.
What to do right now…
I would say right now is a great time to sweep the floor (which means buying the lowest listed NFTs in a given collection). There are some great projects that are currently undervalued (think of them as being Under 30 RSI right now). Once Coinbase and other apps launch and have these projects listed, their demand will go up but the supply will remain limited to whatever the collection was minted at. So the key here is finding projects on OpenSea that have Blue Chip potential and snatching them up before the NFT boom (same goes for NFTs on the VeVe app as well).
There are a lot of projects oversaturating the market right now and most haven’t been minting out by a long shot. That is why I think, unless you want to roll the dice to land a rare, it might be a better strategy to buy a project that is already succeeding but has a lot of potential ahead and buy it at a slight premium. Think of this extra cost as the insurance that saved you from aping into a mint that craters after launch. But if you DO want to get in on a project before the reveal, keep an eye on the secondary market on OpenSea as I see a lot of projects drop below even the minting price so you can sweep the floor and buy the NFT off of all the paper hands.
Do some research about the project and even go through the past data about the Floor Price. It’s crazy how much they act just like stocks and hit Support and Resistance prices. You can use the skills you already have to buy into a solid project when the fear is at it’s peak.
You can scope out which projects are most popular on OS right by checking the current stats:
OpenSea Ranking
OpenSea Activity
Hopefully you found this helpful but remember, DYOR!
Trade long and prosper!
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