Blue Chip NFTs: What It Is, It’s Projects And How To Identify It?
What is a Blue Chip NFT?
The term “blue-chip NFTs” describes non-fungible tokens whose value has skyrocketed. Market observers predict that these digital assets will maintain their high valuation for a very long time. The factors that determine whether an NFT is considered a “blue chip” company is Brand recognition, community involvement, celebrity endorsements, floor price, and sales volume. Blue chip NFTs means projects that are expected to be stable in terms of value and profitable in the long term.
A “blue chip” company is one that is famous and regarded as a safe investment on a global scale market. High-quality goods and services are typically offered by blue-chip businesses, which are also known for their ability to weather economic downturns and turn a profit despite them.
What makes Blue-Chip NFTs Unique?
In the conventional financial world, blue chips are all about longevity, dependability, and quality. It would be incorrect to attribute the traits of traditional blue-chip stocks to blue-chip NFTs. Equity-to-debt ratios, ROE, and ROA are not really relevant. Market capitalization might be relevant, but not many NFT collections have been around long enough to have gathered a significant market cap.
Since the market boom of 2021, hundreds of NFTs have been created, and more are being added every day. The majority will never be regarded as blue chips. Only a small number of NFT projects today can be classified as blue chips purely based on their market value. Blue-chip NFTs are simply NFT projects that are anticipated to maintain a high value for a very long time.
What are the Characteristics of a Blue Chip Project?
The projects on this list all share the following characteristics, even though they aren’t necessarily “blue chip” projects:
1. Historical Value (Floor Price and Sales Volume)
One of the most important characteristics of blue chip NFTs is their historical value. This speaks to the NFT’s sales volume and floor price. An NFT must have a track record of consistent value growth in order to become a blue chip.
2. Brand Power
Brand power is the second characteristic of blue-chip NFTs. Blue chip NFTs are perceived to be worth more because they are frequently linked to famous people or celebrity endorsements.
3. The Team
The team behind an NFT is equally important in determining its standing. A blue-chip NFT’s creators, developers, and advisors frequently have a solid reputation in the industry and a successful track record.
4. Roadmap
Another crucial characteristic to take into account is the roadmap of a blue chip NFT. The NFT must have a distinct and useful purpose, such as the ability to access special events, unlock exclusive content, or take part in exclusive communities.
4. Community
Another distinguishing characteristic is the strength of the local community. It must have a sizable and active following of investors, collectors, and fans who encourage it and aid in its expansion.
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Blue Chip NFTs Projects
Let’s look at a few top picks for NFT collections that are generally thought to have merited that status.
- CryptoPunks
- Bored Ape Yacht Club
- Cool Cats
- Doodles
- Meebits
1. Cryptopunks
CryptoPunks is a forerunner in the NFT space. It is a collection of 10,000 NFTs that Larva Labs released back in 2017. The NFTs were produced on Ethereum. They reported a sales volume of 575.2M in 2022, and 3% of NFT marketplaces’ trading value was made up by CryptoPunks on its own native marketplace. Although one of the first NFT collections, CryptoPunks does not have a market cap greater than BAYC. Cryptopunks have sold one of the most expensive NFTs ever.
2. Bored Ape Yacht Club
The Bored Ape Yacht Club (BAYC) is an NFT collection of 10,000 profile pictures created by Yuga Labs and stored on the Ethereum blockchain. BAYC collectors have works of art depicting uninterested apes with arbitrary decorations and traits. The most expensive NFT in the collection was Bored Ape #232, which sold for the equivalent of $2.85 million (1,080.69 ETH) in January 2022. In March 2022, the collection’s market cap was $2.5 billion. The collection is one of the most valuable on the NFT market because the floor price for a Bored Ape is over $250,000.
3. Cool Cats
Cool Cats is another new addition that has followed in the footsteps of Bored Ape Yacht Club by experiencing rapid growth. The 9,999 blue cartoon cats in this collection, which was created in July 2021. However, they all have randomly generated hairstyles, hats, accessories, facial expressions, and clothing. More than 50% of Cool Cat NFTs have the basic status “cool,” indicating that they are worth 3–4 points. Users can take part in exclusive events like NFT claims, raffles, giveaways, and more if they’re Cool Cat collectors.
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4. Doodles
Doodles (DOODLE) is a collection of 10,000 NFTs created by Evan Keast, Scott Martin, and Jordan Castro. Keast and Castro worked on the team that launched CryptoKitties in 2017 before launching Doodles. Users can vote for experiences and endeavors supported by the Doodles Community Treasury by purchasing a Doodle NFT. The Doodles NFT collection shares characteristics with the majority of other premium NFT collections, including distinct rarity degrees.
5. Meebits
Meebits is an NFT collection of 20,000 3-D voxel characters generated by a proprietary generative algorithm. They are full-body 3D characters, in contrast to other blue chip NFTs on this list. The characters each have unique characteristics, including clothing, hairstyles, tattoos, and more. The Meebits NFTs, or 3D representations of the pixel, are voxels, as can be seen by carefully examining them. In 2022, Meebits had sales of more than $164 million.
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Celebrities who purchased Blue Chip NFTs
It won’t surprise anyone at all to see famous celebs “ape” into some of these NFTs given the growing popularity of blue chip NFTs. The Bored Ape Yacht Club NFT collection has been able to draw the most pop artists out of all the projects. A few well-known individuals who own BAYC NFTs include Snoop Dogg, Steve Aoki, Justin Bieber, Paris Hilton, Eminem, and Timbaland.
Is it a good idea to invest in blue-chip NFTs?
Blue-chip NFTs can be a wise investment, but the majority of them are out of reach. However, due to each NFT’s individuality, prices for NFTs from the same collection can vary greatly. Start with the least expensive investment in the collection if you are a beginner. They are reasonably priced and usually the most straightforward to resell for a quick profit.
If users don’t have a large sum of money to invest, look for NFTs with the potential to become blue-chip securities in the future. Opportunities for significant gains remain, particularly now that well-known marketplaces like eBay are also embracing the NFT craze. Every blue-chip NFT had a humble beginning, and if they’re lucky, they might find one that’s just about to take off.
Conclusion
Only a small number of projects in the NFT sector currently meet the criteria for “blue chip” status. As the NFT market continues to develop, more blue-chip NFTs will probably continue to appear. Due to the general lack of long-term data, it may be difficult to determine which project will be a future blue chip.
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