A key skill set for any aspiring NFT investor is the ability to discern the relative value of different collections. It’s not just about having a good eye for art; smart investors should be able to make informed decisions based on critical metrics, pricing dynamics, and market trends.
And while there are tons of metrics you could follow (think: total sales volume, transaction count, etc.), what’s key is knowing how to analyze a collection or wallet holistically. This means evaluating the individual pieces, understanding liquidity and market trends, and optimizing your portfolio with intelligent investing strategies.
At NFTGo, we collate the latest data from the NFT market to give you an in-depth view of how collections and wallets perform. Armed with this data, you’ll be able to assess the value of any given collection.
To get start, let’s look at the different metrics you can use to analyze an NFT collection – and the techniques you can use to make the most of those metrics.
Analyzing a New NFT Collection
New NFT collections quickly build hype – especially if they are from (or promoted by) a big-name holder or collection artist. But how can you know this particular collection or project is worth investing in?
NFT project analysis is a bit of an art, but there are some key metrics you can look at to better understand the project’s potential.
But rather than explain the process, let’s show you how it’s done base on a recent NFTGo team’s analysis of the Cryptoon Goonz collection. This step-by-step analysis will give you an idea of the thought that goes into understanding the value of an NFT collection – and whether or not it’s worth investing in.
Step 1: Look At The WHO Behind The Collection
Every NFT collection or project analysis should start with a what – what is the project about? This requires a bit of background research (made easy by using a marketplace data aggregator like NFTGo) to understand the types of assets present in the collection, who create them, and what kind of market they are aimed at.
Once you know what type of project it is, then you can look at the WHO – who created it and who is involve? Are there any big names attached or associated with this collection? This helps you assess its legitimacy and determine if it has any chance of success.
For Cryptoon Goonz, the project’s founder is @SeanTat2s, and the team around the collection includes cofounder Joel, project manager Ryan Hodge, & lead “enGOONeer” Jesse Friedland.
Knowing who is behind a project allows you to look closer at each individual’s past successes and failures and the team’s track record.
Step 2: Assess The WHAT
Once you know who is involve in a project, it’s time to assess the WHAT. What are the types of assets includ in this collection? Are they scarce or rare? How many unique pieces are there? What kind of market demand does it have?
In the case of Cryptoon Goonz, the collection includes 6,969 NFTs that are store on the Ethereum blockchain. Each NFT features 8 unique attributes and varying levels of rarity. As of publication, the market cap has risen to 1.16k eth ($2.11 million) with 2 whale holders and 315 blue chip holders.
Step 3: What Ownership Rights Come With Investing?
Another key factor to consider is what ownership rights come with investing in a collection. Does the investor get voting rights? Do they receive insider access to any collection communities or exclusive events?
All of these are important to consider when making an investment decision.
When you invest in Cryptoon Goonz, you will fully own the NFT you purchase, along with its commercial rights. You will also become a member of the DAO, which gives you access to exclusive perks like early access to upcoming releases, dedicated areas on Discord, the ability to vote within the DAO, and special promotions.
Step 4: What Rewards Do Holders Receive?
Sure, ownership rights are great, but what other rewards can the holders receive by investing and remaining loyal to the collection? Many NFT collections will offer their investors rewards for their loyalty.
Cryptoon Goonz holders are reward with BRED tokens, which can be used to purchase exclusive items within the collection and to participate in special events.
BRED is accumulate by placing Goon NFTs into the unique “Goonz Portal” within the system. This means the longer you hold onto your NFT – and the more you engage with the community – the more rewards you’ll enjoy!
Step 5: Analyze The Road Ahead
Roadmaps are critical for the long-term success of an NFT project. What are the team’s goals and objectives? Is there a plan in place to reach them? Are they actively developing new features or products?
A well-thought-out roadmap provides investors with a clear picture of where the collection is head while also giving an indication of its potential future value.
The team behind Crpytoon Goonz has released a 2.0 roadmap, which highlights the team’s move toward developing the above-mentioned Goonz Portal (built by @theincubator_ and @MacNCheeasy). The portal allows NFTs to be “transforme” when entered and gain new attributes – giving greater customizability to holders while ensuring the collection stays at the original size.
Step 6: Look At The Collection’s Mint Statistics
Once you’ve reviewed the collection details, you should have a good idea of whether or not the creator and team are serious about the project’s long-term success. You should also have a good sense of how many NFTs will be in circulation, which can provide insight into future pricing and liquidity potential.
But your research shouldn’t end there. You’ll want to compare the words to the hard data to ensure the project has lived up to its promises.
Examine the minting statistics for each collection and look at the number of NFTs minted, how long it took to reach certain milestones, and any changes in pricing trends along the way. This information can provide a valuable indication of demand and liquidity potential for future NFT sales.
For example, Cryptoon Goonz was minted 0.06 ETH each, and the initial mint attracted 2,450 unique minters. The entire collection was fully minted in less than 24 hours – pointing to just how popular the collection was from its launch.
Finally, take a look at the completed mints versus unsold or partially sold NFTs. This can provide an indication of whether there is significant interest in buying up the remaining pieces and potentially drive prices higher in the future.
Step 7: Make Your Move
Once you’ve analyzed the collection, it’s time to make your decision. If you believe the collection is worth investing in, then jump into the marketplace and see if you can find pieces that match your price target.
As you grow in your ability to analyze specific collections and creators, you’ll soon find ways to get in on the front end of top mints and get in on the action even before the collection is sold out.
Become an NFT Analysis Pro with NFTGo
Want to learn even more about how to analyze NFT collections and make the best investment decisions? At NFTGo, we’ve created a powerful marketplace analysis solution that brings together the latest data and insights into the NFT market.
Check out a real-time ranking of top collections, creators, and wallets, as well as get regular updates on the hottest deals in the NFT market. Plus, you can dig deeper into the specifics of particular collections, analyze data points across different collections, and even stay up-to-date with the latest news in the market.
Analyzing NFT collections is a crucial part of successful investing, so make sure you do your homework before putting any money down. Understanding key metrics, assessing individual pieces, and staying on top of market trends are all essential steps for optimizing an NFT portfolio.
Check out all the tools on NFTGo today and start your journey toward becoming a successful NFT investor!