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Five Strategies to Identify Blue-Chip NFTs: Holder Distribution Ratio, Trading Volume, Rarity - Floor Price Ratio

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Five Strategies to Identify Blue-Chip NFTs: Holder Distribution Ratio, Trading Volume, Rarity - Floor Price Ratio

Most NFTs eventually go to zero, so I usually collect projects that I believe will succeed in the long run.

This article is authorized to be reprinted from BlockBeats, summarizing the views of NFT enthusiast Mando on his personal social media platform, translated and organized by BlockBeats. Original article can be found here.

With thousands of NFT projects out there, it's increasingly difficult to determine which ones to buy. I believe that most NFTs eventually go to zero, so I usually collect projects that I believe will succeed in the long run.

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To succeed in this, you need a very selective filtering mechanism and will not buy unless a project performs well in multiple aspects.

Here are the indicators I value most when looking for projects:

1. Statistics

  1. Unique Ownership: Ideally over 50%
  2. List Percentage: Ideally below 11%
  3. Trading Volume: Consistently in the top 40, especially during dips or bear markets
  4. Distribution: Ideally, few addresses hold over 1% of the total NFT supply
  5. Rarity Curve: Ideally, the top 1% of rare NFTs are at least 4 times the floor price

2. Team + Structure

  1. Professional Members: Look for long-term team members who are aligned with the project and its goals
  2. Identity Endorsement: Ideally, at least one team member has an identity endorsement
  3. Incentives: Ideally, most minting profits go into the project treasury, with team income mainly from trading fees

3. Uniqueness

  1. Unique Selling Point: Find a unique selling point compared to other projects in the field, preferably beyond aesthetics
  2. Field: We are in the early stages of a cultural movement, so you can choose projects in nascent fields like wearable NFTs

4. Atmosphere

  1. Experts: Look for respected individuals in the field willing to participate in the project
  2. Influencers: Seek support from Key Opinion Leaders (KOLs) who can bring higher exposure to the project
  3. Engagement: Find a team native to NFTs who are active on Spaces and Twitter

5. History

  1. Experience: Ideally, look for projects existing for over 2 months, as this is crucial in finding alpha to better understand all aspects of the project
  2. "Survivors": Ideally, find projects that have survived at least one bear market with a historical price drop of over 40%

We hope these indicators are helpful. Good luck!

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