NFTGo: NFT Annual Report 2024

Forewords

The NFT Revolution: 2024 and Beyond

In just a few short years, NFTs have catalyzed a digital revolution - rising meteorically before market forces intervened. Even in the downturn, resilience and innovation prevail. Builders forge ahead, transforming the possibilities for ownership, community, and beyond through emergent use cases.

As we enter 2024, questions loom about the future of NFTs. Some wonder if the hype has fizzled for good. Yet upticks in trading activity signal enduring enthusiast demand.

To comprehend the road ahead, we must review the past. This report chronicles the NFT landscape's evolution from its advent to today. We examine key events, investments, innovations, and data that shaped its developmental arc.

The power of engaged communities and social dynamics to drive adoption, regardless of market cycles. Novel integrations with mainstream brands that expand possibilities. The emergence of decentralized financial products unlocking further functionality.

While speculation has defined several boom-bust phases, a maturing ecosystem is taking form - one centered on utility and meaning rather than bets on price appreciation alone.

As our analysis shows, when surface-level hype evaporates, the true core of NFTs comes into focus – new models for culture, ownership, and community coordinated by code rather than institutions.

The coming year heralds uncertainty but also immense possibility. With more builders joining each day, NFTs remain fertile ground for visionaries charting the future through a decentralized lens.

This report aims to illuminate that future by understanding the past. We invite you to explore this knowledge resource as you navigate the ever-evolving frontier of NFTs. The revolution continues.

—— Elsa, Head of Research

What You Can Expect From the Report

The NFT annual report 2024 builds upon our learnings from previous years to deliver an in-depth perspective on the NFT market.

• Evaluates capital flows and upcoming plans for top-performing NFT projects - serving as a benchmark for grasping future trends
• Covers key metrics across categories: market capitalization, volume, sales, holders, capital inflows
• Analyzes gaming, collectibles, avatars, art, metaverse, DeFi, IP, social, music, utility
• Explains NFT data patterns and trading strategies, like identifying buyer demand
• Examines distribution and characteristics of projects: wealth gaps among users, liquidity differences
• Reveals whale behaviors - investments, reactions to events, entry and exit timing
• Consulted influencers and academics for 2024 NFT predictions

Special Thanks To Our Partners!

CHAPTER 1 NFT ECOSYSTEM

As we enter 2024, the NFT landscape will continue evolving as new utility concepts displace obsolete trends. By examining emerging use cases and infrastructure improvements, we can forecast some likely hype cycles:

Metaverse Interoperability - 2023 saw many brands and creators launch proprietary virtual worlds and NFTs, but these remain fragmented. In 2024, cross-platform ecosystems could enable unified digital identity and assets across metaverses. This will spur fresh hype and speculation on virtual experiences with transferable utility across worlds.

Gaming NFT Evolution - While play-to-earn models received backlash in 2023, gaming NFTs will evolve into tools for creation, customization and governance. User-generated gaming metaverse worlds will take off, leveraging NFTs for provable digital asset ownership, creative contributions, and community coordination.

Social Tokens - Social NFTs allowing exclusive access or influence with creators blew up in 2023. However, in 2024 we may see a shift from NFT speculation to direct revenue sharing via tokens. This social patronage could displace NFT hype with more sustainable monetization for creators building engaged communities.

Overall, 2024's hype cycles will center on NFTs enabling connectivity, creativity, and collective governance - moving beyond an isolated asset speculation mania toward meaningful utility fostering participation and ownership. Use cases that empower, rather than restrict, may finally shift discussion toward constructive applications over profit-seeking hype.

NFT Landscape

The Evolution of NFTs: Key History and Milestones

NFTs have gone through several key phases of evolution since their inception. Here is an overview of the major milestones in NFT history so far.

Phase 1: Early Origins (2012-2016)

• 2012 - Colored Coins introduced the concept of tokens representing real-world assets on Bitcoin's blockchain. This laid the groundwork for NFTs.
• 2014 - Counterparty launched, enabling creation of tokens for any asset on Bitcoin's blockchain. Early NFT experiments happened, like trading Rare Pepe illustrations.

Phase 2: Growth of Infrastructure (2017-2020)

• 2017 - CryptoKitties, one of the first major NFT projects, allowed trading unique digital collectibles on Ethereum. Its popularity drove ERC-721 standard for NFTs.
• 2018 - NFT marketplaces like OpenSea and SuperRare emerged, making it easier to create, buy and sell NFTs.
• 2019 - NBA Top Shot introduced officially licensed NFTs of NBA video highlights, attracting mainstream attention.

Phase 3: Explosive Growth (2021-Early 2022)

• 2021 - Beeple's NFT artwork sold for record $69 million at Christie's auction house, sparking NFT mania.
• 2021 - Bored Ape Yacht Club (BAYC) became a hugely popular NFT collection and status symbol. Its success spurred more PFP projects.
• 2021 - NFT gaming gained steam through Axie Infinity and metaverse projects like The Sandbox and Decentraland.
• 2021 - Nouns pioneered community-centric approach with NFTs tied to DAO governance.
• 2022 - Leading NFT projects like Doodles, Azuki and Moonbirds saw multi-million sales. Yuga Labs emerged as key player.

Phase 4: Market Contraction (Late 2022-2023)

• 2022 - NFT bubble burst as speculation cooled off. Market shifted from short-term flips to long-term utility.
• 2023 - Focus on building sustainable communities and real-world utility around NFT projects going forward.
• 2024 - New NFT projects with accessibility and new narratives, such as Gonesis.

In summary, NFTs have progressed through the expected phases of a new disruptive technology - early innovation, infrastructure development, explosive growth, and market maturation. The long-term utility of NFTs continues to evolve.

CHAPTER 2 MARKET OVERVIEW

2023 NFT volumes appear volatile but ultimately demonstrate momentum late in the year surpassing January/February levels. Q1 and Q4 prove to be the strongest quarters while a lull happens in Q3.

MarketCap & Volume - Signs of a Rebound

Annual trading volume of the NFT market in 2023. Source: NFTGo

Upon reviewing the aggregate data, it's evident that both market capitalization and trading volume have seen a downturn when compared to the previous year. The market capitalization suffered a significant decline of 41.79%, plummeting to its lowest at 3.3 million ETH. The peak of trading activity was on February 20th, where the daily trading volume soared to its yearly high of 240,000 ETH. However, this momentum was not sustained throughout the year. Disappointing updates and releases, such as the much-anticipated game Legends of the Mara, the new collection Azuki Elementals, and the Degods update, failed to meet community expectations, contributing to a dampening of market enthusiasm. As a result, trading volumes remained subdued for the middle portion of the year. Despite this lull, there were signs of a rebound beginning in November.

Blue Chip Index - Continued Blue Chip Dominance

2023 Blue chip index, Source: NFTGo

Entering 2023 off a brutal ~70% correction, expectations for blue chip NFTs have been broadly tempered. However, some glimmers of resilience emerged late in 2023, with the index rallying off a bottom of 4,488 in October 2023 to regain the 5,000 handle by year's end. This may suggest enduring demand for quality collections amidst wide-scale capitulation in more speculative corners of digital assets.

Looking ahead to 2024, there is a credible bull case underpinned by expectations that new blue chip collection will arise such as pudgy penguins. Most likely is an extended period of uneven maturation marked by interim volatility spikes as the market balances precariously between speculation and functionality. Thus while glimpses of stability are plausible, the road ahead remains rocky towards establishing NFTs as a unique digital asset category deserving of rich standalone valuations.

The trading volume of different collections. Data Source: NFTGo

A deep dive into 2023 NFT trading volume reveals that blue chip collections still dominate the market. Bored Ape Yacht Club alone accounted for 10.45% of total volume, with Mutant Ape Yacht Club and Azuki ranking second and third. The top 9 collections combined made up nearly 50% of overall volume. While newer collections arise frequently, the data indicates that the most trusted and recognizable blue chip NFTs are still capturing the majority of trading activity and value.

Category - PFP Is Still the Key to NFTs

A comparison of the market caps of different NFT categories. Source: NFTGo

The chart indicates that PFPs continue to be the cornerstone of NFT applications, having achieved a total market capitalization of approximately 4 million ETH. In contrast, the art category—surpassing games, collectibles, and utility—has emerged as the second-highest in the NFT space with a market cap close to 500 million ETH. This surge is likely due to the advancements in AI, as evidenced by the evolution of OpenAI's ChatGPT, which seems to have bolstered the market significantly.

Since last year, the domain name category has become more prominent, reflecting a heightened interest in digital assets and their potential applications within the burgeoning digital landscape.

PFPs are expected to remain the bedrock of the NFT industry, providing a foundation for various NFT collections to broaden their reach. These collections are exploring new ventures, such as partnerships with the traditional Web2 industry and migration to more populous blockchains, in an effort to expand their audience.

Since 2022, the NFT sector has entered a phase of consolidation, with each category cultivating its distinct audience. The current strategy for growth involves broadening business models to attract additional investors and enthusiasts. Notable developments include the launch of a new game by Yuga Labs, innovative collections and elements by Azuki and DeGods, and Pudgy Penguins' collaboration with Walmart. The integration of AI has infused the industry with fresh momentum, leading to an increase in video and generative art NFTs. Looking forward to 2024, we anticipate more innovative endeavors that will likely invigorate the market further.

A comparison of the liquidity of different NFT categories. Source: NFTGo

Contrary to expectations, it was the gaming category that emerged with the highest liquidity, surging by approximately 380%. This impressive liquidity can be attributed to the popularity of collections such as Otherside Koda, as well as the introduction of new gaming collections like OVERWORLD INCARNA. Additionally, renewed interest in classics such as Pixelmon has further invigorated the market. The art and land categories have also demonstrated substantial liquidity, both exceeding 200% when compared to other categories.

Holder & Traders - From Volatile Market to Calm Market

2023 NFT holder & trader statistics. Source: NFTGo

As 2023 came to a close, the NFT market shifted into a less volatile trading phase compared to the previous year. The initial four months were characterized by heightened activity, with traders rapidly offloading their NFTs, contributing to instability and daily fluctuations in trader numbers. However, the latter half of the year saw a transition to a more tranquil trading environment, leading to a more stable market.

Data from NFTGo indicates that the market as a whole experienced a decline throughout 2023. There was a significant reduction in active traders, with a 47.51% decrease compared to 2022. Despite this downturn in trading activity, the number of NFT holders saw considerable growth, increasing by 132.44% over the course of the year, reaching a total of 6.42 million holders.

Daily number of sellers / number of buyers ratio in 2023. Source: NFTGo

The time series data shows the daily buyer to seller ratio over 2023 ranged from 0.52 to 1.02, with an overall average of 0.85, indicating a reasonably balanced market between buyers and sellers. However, there was moderate variability day-to-day and some cyclicality observed, with the lowest monthly averages occurring in April (0.66) and May (0.80).

The highest monthly average in September (0.92), indicating the upcoming “Uptober” conditions.Daily spikes above 0.95 occurred 11 times throughout the year, highlighting particular days with surging buyer demand compared to sellers. The maximum daily ratio of 1.02 on June 29 was preceded by an incline over the prior two weeks pointing to building buyer strength.

Marketplace - Blur vs OpenSea, Who Wins?

NFT marketplaces in 2022. Source: NFTGo

In 2022, OpenSea dominated trading volumes with 7.74 million ETH, 6x higher than its next competitor. However, new entrant Blur saw meteoric growth after launching in October 2022, surpassing OpenSea's daily volumes by December.

NFT marketplaces in 2023. Source: NFTGo

This growth continued into 2023, with Blur accumulating 4.33 million ETH in total volume - over 2.5x OpenSea's 1.7 million ETH. However, OpenSea maintained a lead in number of sales at 7.9 million vs. Blur's 4.1 million. This implies higher average order values on Blur.

Examining active traders further reinforces Blur's traction with higher-value clients. Blur saw 292K active traders in the past month including 187K buyers and 210K sellers. OpenSea had more traders overall at 642K buyers and 719K sellers, but Blur appears to be capturing more high-value whale traders.

NFT marketplaces in 2023. Source: NFTGo

Key drivers of Blur's growth include its zero platform fees, token incentives, and features catering to professional traders like bulk buys. However, subsidies are likely unsustainable long-term.

The market will consolidate further around platforms offering the best core user experience, discovery and community-building features. Traders will prefer marketplaces with the multi chain trading, highest liquidity, security, etc.

Solana & BTC - The Rising Market in 2024

Overall trading volume and number of traders grew significantly over the course of the year, indicating growing interest in Solana NFTs. Total weekly volume across both marketplaces rose from around $1.5 million in early January to over $1.1 million in late December. The number of active traders per week increased from around 80,000 to over 110,000 over the same period.

Collections comparison between Solana marketplaces. Source: Dune Analytics

The number of unique collections traded per week increased 4x from around 5000 in January to over 15k in December, pointing to growing diversity in the NFTs being traded on Solana.

Traders comparison between Solana marketplaces. Source: Dune Analytics

The number of active NFT traders on Solana surged in 2023, with the combined weekly traders on Magic Eden and TensorSwap rising 3x from January to over 100K by December.

Average weekly trade size declined over the year, from around $850 in January to $550 in December, possibly indicating more speculative trading of lower-priced NFTs. Magic Eden's average trade size was consistently larger than TensorSwap's.

Solana Volumes Traded. Source: Dune Analytics

Magic Eden accounted for the bulk of volume and traders, though TensorSwap gained ground in Q4 2023. Magic Eden's share of total weekly volume dropped from 90% in Q1 to 60% in Q4 as TensorSwap's share rose from 10% to 40%. This suggests rising competition between the two marketplaces.

Ordinals Inscription Volume. Source: Dune Analytics

During 2023, Ordinals revolutionized the industry with the innovative concept of Inscriptions, garnering significant attention from all investors. By January 2024, the total number of Inscriptions had reached over 56M. As shown above, between April and September 2023, since a majority of marketplaces commenced support for Ordinals and BRC20, a period of remarkable growth shown in the graph. Despite a temporary decline in daily inscriptions in October, the launch of UniSat's Brc20-swap catalyzed a resurgence in activity. This resurgence was marked by a consistent daily inscription count of approximately 250K, starting from November onwards.

Ordinals Type. Source: Dune Analytics

Initially, the predominant use of Ordinals was truly for images. However, with the market's evolution and the introduction of BRC-20, the lack of file format restrictions in Ordinals facilitated the embedding of JSON files, predominantly in text format, into BTCs. Under the help of Indexer, BRC-20 could replicate functions akin to those of ERC-20, including minting and transferring assets. This development led to text becoming the most popular type of Ordinal, accounting for nearly 90% of daily inscriptions. Notably, the daily text inscriptions on several occasions exceeded 400K.

Ordinals Trading Volume. Source: Dune Analytics

The evolution of the marketplace is closely aligned with the progression of Ordinals. Data from the graph indicates that UniSat, the inaugural marketplace to launch BRC-20, marked a significant milestone in this development. As time progressed, major exchanges such as OKX, Huobi, and Binance began listing the $ORDI token, substantially boosting trading volumes.

Since November, OKX has consistently dominated a major portion of the market's transaction volume. By January 2024, over $1.8 billion worth of transactions had been executed, highlighting the robust growth and increasing market acceptance of Ordinals.

NFT/ETH Ratio - NFT Market Exhibits Unique Resilience

NFT/ETH 2023 market cap ratio. Source: NFTGo

Since the beginning of 2023, Ether has been at a historically low point, and NFT floor prices have also remained at a relatively low level. Notably, the ratio peaked in February, coinciding with Ethereum's lowest price point of the year at $1,429. This indicates that, despite the overall correlation between the NFT and ETH markets, the NFT sector exhibited its unique stability.

Throughout 2023, the overall trend showed a downward trajectory in the NFT/ETH market cap ratio, falling from just about 0.06 to below 0.04. As the year progressed, there was a modest recovery in the ratio. The rebound in the ETH market also brought activity back to the NFT market. According to CoinGecko, the current market cap of ETH is about $275 billion, while the market cap of the NFT market stands at about $8.6 billion.

2023 Pearson correlation coefficient of ETH and the NFT market. Source: NFTGo

In short, the correlation coefficient of the two markets was about 0.6 in 2023. The lower correlation occurred in Q1 and Q2 when the ETH market was in the doldrums. In Q3 and Q4 of 2023, the correlation coefficient remained stable, above 0.8, indicating that in a more active ETH market, NFTs also tend to show strong corresponding activity.

On the other hand, we cannot deny that the NFT market also has trends and performances separate from other markets. To illustrate this further, in February, while the price of Ether dropped to its lowest point of the year, the trading activities of NFTs reached their annual peak, with up to 221K ETH traded daily.

NFTFi Trends - DeGods and MAYC Were the Most Consistently Deposited Collections

2023 NFTfi Weekly Deposit by Collection (Top 8). Source: NFTGo

Total weekly NFT deposits averaged around 3,500 in 2023, with spikes over 5,000 several times. The top 10 collections made up 30-40% of deposits on average. DeGods and Mutant Ape Yacht Club were the most consistently deposited top collections throughout 2023. Azuki also remained in the top 5 for most weeks.

2023 NFTfi Weekly Deposit. Source: NFTGo

Deposits spiked in late June, likely due to increased crypto market volatility. Activity declined in late December around the holidays. If growth continues at its 2023 pace, we could expect to see average weekly deposits in the 4,000-5,000 range in 2024. Some potential spikes to 6,000+ deposits per week. Established blue chips should hold their ground as deposit favorites.

SocialFi Trends - Continued Growth In Volumes

2023 SocialFi Weekly Transaction. Source: Dune Analytics

The socialfi transaction volume data for 2023 shows an active and growing ecosystem across multiple platforms. Total daily transactions fluctuated between 10,000 to 200,000 over the year, with the highest volumes seen in September driven by activity in Friendzy, StarArena, and Hub3.

While established platforms like Friend.tech and Post saw relatively stable transaction levels week-to-week, newer entrants like Hub3 and StarArena saw more volatility as they increased adoption. Friendzy also saw spikes in volume as it held special events and promotions throughout the year.

2023 SocialFi Market Percentage. Source: Dune Analytics

In terms of trends for 2024, we would expect to see continued incremental growth in transaction volumes across both existing and emerging platforms. As the space matures, we anticipate less volatility in activity as user bases stabilize for individual apps. While unknown new entrants could drive further spikes in volume, the established platforms are poised to see 10-25% increases in year-over-year transaction levels based on 2023 growth trajectories. Overall socialfi activity could reach upwards of 300,000 transactions per day on an average basis by late 2024 if current momentum persists.

CHAPTER 3 MICRO TRENDS

Floor Distribution

​​The data shows that most of the NFTs (1,727) have floor prices between 0 and 0.01 Ξ, accounting for over 35% of the total. As the price range increases, the number of NFTs in each range declines steadily. NFTs priced between 0.01 and 0.1 Ξ make up an additional 23% (1,274 NFTs), while mid-range floor prices between 0.1 and 1.0 Ξ account for another 14% (302 NFTs).

Only a small proportion of NFTs are priced above 1.0 Ξ, with 53 (just over 1%) in the 1.0 to 2.0 Ξ range. The distribution declines further for higher price bands - just 33 NFTs (0.7%) have floor prices from 2.0 to 3.0 Ξ, 18 (0.4%) range from 3.0 to 4.0 Ξ, and only 7 (0.1%) are priced above 6.0 Ξ.

Floor price distribution. Source: NFTGo

Digging deeper into the NFT floor price distribution data reveals several notable trends:

• Highly top-heavy distribution - The market is overwhelmingly dominated by low-priced NFTs under 0.1Ξ, which account for 58% of the sample. Higher price tiers exhibit an exponential drop-off, with only 1% of NFTs priced above 1Ξ. This signals a market with few high-value standouts compared to a glut of lower-value pieces.
• Scarcity of mid-tier offerings - NFTs with floor prices between 0.1Ξ and 1Ξ make up just 14% of the data. This relative scarcity of "mid-market" priced NFTs indicates pricing tends to currently polarize towards extreme low or high ends.
• Virtually non-existent ultra high-end market - Only 0.06% of NFTs have a floor above 100Ξ, underscoring an overall lack of pieces exhibiting "blue chip" crypto art traits and values. Reports show historical "blue chip" thresholds starting from around 25Ξ.

In summary, the distribution highlights an NFT market favors inexpensive speculative plays, while mid-tier and high-value collectibles remain scarce. As the market matures, we may expect more balanced price tier distributions, signaling improved market health and diversity.

Collection Issuances

Number of NFT projects (high-quality collection by NFTGo)

As of January 1st, 2022, the total high quality number of NFT collections issued was 1,239. This cumulative count grew steadily day-by-day over the course of 2022, ending the year at a total of 4,856 collections, adding 3,617 net new collections minted during the year.

March 2023 saw the fastest acceleration, with 1,215 new project releases during the month. This represented 329% growth over February's volume.

Platforms like OpenSea have reduced barriers for launching new collections with templated minting and turnkey marketplaces. This democratization empowers more creators, but has also facilitated low-quality speculative projects.

New NFT projects launched by month 2023. Source: NFTGo

On average, 8.4% of yearly collection volume was minted each month. March and November saw the highest rollout rate at 9.45%. Q1 had particularly strong issuance, averaging 9.15% across January through March.

In the second half of the year, new collections declined each quarter: Q3 averaged 8.24% over July to September. However spikes correlate loosely with seasonal events like Q1's winter-spring transition. Overall the 8.4% average suggests steady, sustained monthly releases in 2023.

Market Cap & Volume Distribution

The data shows collections with market capitalizations under 100Ξ make up the largest share at 5,662 projects, accounting for almost 90% of the total number of NFT collections.

Meanwhile, mid-tier collections valued between 100Ξ and 10KΞ represent 9.8% of the sample, with 1,070 total projects in this range. Only 43 collections, or 0.7% of the total, have reached higher market valuations above 10KΞ.

Market Cap distribution among all NFT projects. Source: NFTGo

This distribution indicates high valuation collections are more scarce. The relative scarcity of large market cap collections suggests consolidation has yet to occur, and few clear "category leaders" have emerged so far. This is expected in a nascent market, and the landscape may concentrate into fewer high-value collections as the space evolves. The mid-market segment represents an area of potential growth in coming years as well.

Liquidity Distribution

NFT liquidity refers to the ability to sell NFT smoothly at a reasonable price. When there is a lack of liquidity, some NFTs must be discounted in order to be sold quickly.

Liquid collections in the market. Source: NFTGo

NFT liquidity is closely related to the market. Trading volume and traders’ activities are used to measure the liquidity trends. We can conclude that the market is the most liquid in January and April. It becomes less liquid in May and gets to the lowest point in September.

Royalty Distribution

2023 Royalty Income for Top Collections. Source: NFTGo

Examining royalty data from top Ethereum NFT collections in 2023 reveals a market still searching for stability amidst cycles of extreme hype and decline. In the first half of 2023, blue-chips like Bored Ape Yacht Club and Mutant Ape Yacht Club posted strong numbers, with BAYC generating $10M+ in royalties on its best days in June. However, the summer brought a cooldown, with BAYC declining from $18.7M daily revenues on 6/23 to just $3.5M by 7/9.

2023 BAYC & MAYC Royalty Data. Source: NFTGo

BAYC roared back in the fall, hitting a peak of $9.6M in royalties on 11/4 during the Otherside metaverse land sale. But November's hype tapered quickly, with sub $1M days in December. In the year, BAYC claimed the top royalty spot in 10 of 12 months. MAYC followed a similar boom-and-bust pattern.

2023 Azuki & Beanz Royalty Data. Source: NFTGo

Meanwhile, Azuki maintained impressive royalty volumes all year, ranging between $2M to $15M per month, indicating steadier floor prices. Moonbirds showed its strength as an emerging blue-chip as well, placing in the top 5 projects for 8 months straight in the second half of 2023 and cracking $2M in October revenues.

2023 Royalty Distribution Among Top Marketplaces. Source: NFTGo

We can see that OpenSea continues to be the dominant NFT marketplace in terms of total royalties distributed across top collections. Specifically, OpenSea distributed 17,696 ETH in royalties for Bored Ape Yacht Club and 18,434 ETH for Otherdeed for Otherside - substantially higher than other marketplaces.

While OpenSea continues to lead in blue chip NFT collections, Blur has found a niche with more middle-tier and emerging projects. The royalty data shows volume is beginning to concentrate on Blur for collections outside of the top tier by market capitalization and sales activity.

2023 Royalty Payer Number. Source: NFTGo

As the market develops further in 2024, increased utility around gaming, metaverses and Web3 applications could help stabilize floor prices and smooth out some volatility - welcoming more mainstream users. But the data indicates the NFT industry still has progress to make on its path to steadier long term growth.

Less Royalty Earned in 2023

Royalty Earned in 2022 and 2023. Source: NFTGo

CHAPTER 4 Global Influence

The Search Interest For NFT

The relative search volume of "NFT", "ETH" and "BTC" on Google Global statistics in 2023. Data source: Google Trends

We can glimpse global netizens' attention to NFTs from Google search volume and can use Google Trends to monitor the keywords "NFT", "ETH" and "BTC.” From the beginning of the year until April, NFTs maintained a consistent lead over Ethereum in search volumes. However, starting from May and extending through October, this trend shifted notably. During this period, the search interest for NFTs aligned more closely with that for Ethereum, indicating a parallel level of public curiosity and engagement with both digital assets.

In contrast, the search volume for Bitcoin (BTC) exhibited notable fluctuations throughout the year. However, a striking change was observed from October onwards, with an explosive increase in search interest. This surge can be attributed to the emergence of innovations like Ordinals, which brought a renewed focus and excitement to the Bitcoin domain. The introduction of Ordinals, a novel concept integrating NFT-like elements with the Bitcoin blockchain, appears to have galvanized public interest, catapulting Bitcoin's search volume to new heights.

Ordinals Are Becoming the Hottest Topic

The relative rising search queries of "NFT" on Google Global statistics in 2023. Data source: Google Trends

Analysis of the top 10 related topics and queries related to "NFT," "ETH" and "BTC" shows something interesting. The most related topics, with a significant search rate, are: ordinals, tensor, Bored Ape, and blur. Innovative NFT products such as Ordinals on Bitcoin and Tensor, Solana's NFT marketplace, are increasingly capturing the attention of investors and market participants. The NFT domain is broadening its scope beyond Ethereum, diversifying across various blockchain networks and thus expanding its reach in the digital asset market.

The relative top search queries of "NFT" on Google Global statistics in 2023. Data source: Google Trends

Among the topics most relevant to NFT searches, we find that similar to 2022, “NFT meaning,” “what is NFT” and “opensea” continue to rank high. In 2023, we’ve seen the rise of new trading platforms such as Blur, but the influence of OpenSea is still not to be underestimated.

The relative rising search queries of "ETH" on Google Global statistics in 2023. Data source: Google Trends

Looking back across 2023, the search volume of ETH is mainly around its upgrade. Ethereum’s Shanghai upgrade enables stakers and validators to withdraw assets from the Beacon Chain. Given that staked Ether constitutes approximately one-seventh of the total token supply, equating to nearly 16 million coins, this advancement carries substantial implications.

The relative rising search queries of "BTC" on Google Global statistics in 2023. Data source: Google Trends

During the year of 2023, global interest in BTC has surged. The related search queries reveal a significant increase, particularly for terms associated with purchasing BTC, such as "coinsbit buy btc," indicating a growing consumer intent to invest. Other rising queries suggest a keen interest in market movements and specific platforms.

Google Search Interest Index of ‘Crypto’

The search interest in 'Crypto' as revealed by the data suggests robust global engagement and curiosity concerning digital currencies. Notably, regions across Africa, North America, and Asia are demonstrating considerable public intrigue and investment in cryptocurrencies. Despite China slipping by two positions relative to the previous year, the search volume has not shown a significant decline, indicating that the global interest in cryptocurrencies continues to trend upwards.

Google Search Interest Index of 'NFT'

Regarding 'NFTs', the observed search interest patterns underscore an escalating global consciousness and participation in the NFT marketplace. Prominent Chinese cities such as Hangzhou and Shanghai exhibit a marked interest in NFTs, reflecting the country's growing involvement. On a worldwide scale, cities within Asia continue to contribute significantly to the search volume, reinforcing the region's position as a primary driver of the NFT market's growth.

The number of potential sellers and buyers is balancing

Interest in the keywords "buy NFT" (blue) and "sell NFT" (red) over the last 12 months. Source: Google Trends

After entering a calm wait-and-see period last year, this year's trading market is still not volatile. Initially, the search volume for buying NFTs was slightly higher than for selling, suggesting a robust market entry. However, as the year progressed, the search interest for selling occasionally surpassed that of buying. The search trends for "buy NFT" and "sell NFT" have tracked closely together, suggesting a dynamic market with active participation in both purchasing and selling.

Brand Landscape

Luxury fashion houses like Louis Vuitton, Dolce & Gabbana, and Burberry are releasing exclusive NFT collections that combine digital and physical ownership of high-end fashion items. There is a focus on providing real-world utility and exclusivity.

Big consumer brands like Coca-Cola, Budweiser, McDonald's, Pizza Hut are mostly experimenting with free promotional NFT drops to engage fans and communities. The drops are small in scale.

Sports teams and organizations like the Chicago Bulls, Golden State Warriors, MLB are launching NFT collections around iconic moments and memorabilia from games and championships. There is a collectible appeal being leveraged.

Automotive brands like Lamborghini, Citroën, Mercedes are offering NFTs that provide digital ownership of branded cars and access to experiences. There is a fusion of digital assets with aspirational physical products.

Media brands like CNN, TIME, Rolling Stone, Associated Press are testing different journalism and photojournalism content being packaged as NFTs. But ethics around benefiting from human suffering is emerging as an issue.

Consistent utility being offered includes access to discounts, exclusive products, VIP events, and metaverse spaces. Financial value from scarcity and collectibility is also a driver.

Trends for NFT adoption

1. Leveraging exclusivity and scarcity value for premium pricing
2. Offering real-world utility like access to products or VIP events
3. Building engaged digital communities of fans and collectors
4. Digital versions of physical assets like cars and fashion items
5. Dynamic NFTs that evolve based on external factors like sports performances

CHAPTER 5 NFT Fundraising Trends

Crypto Fundraising Trends

Total funds raised and total number of funding rounds by month 2021-2023. Source: Cryptorank

Crypto fundraising trends in 2023 reflect a challenging year for many projects. Analysis shows total capital raised has declined approximately 80% compared to 2022 levels.

The data reveals a "smile curve" pattern in 2023, with fundraising declining steadily since March before recovering slightly in November. Specifically, March 2023 saw the peak monthly total at $1.37 billion raised, followed by a low of $370 million in August. November's total rebounded partially to $1.67 billion, but remains well below 2022 levels.

Persistent macroeconomic uncertainty coupled with volatility in crypto markets dampened investor appetite for risk. In addition, high profile failures of crypto firms in 2022 led to more cautious evaluation of project viability and use cases.

However, the partial rebound in November indicates some renewed optimism and willingness to invest at discounted valuations. Strong projects with robust fundamentals may take advantage of market weakness to build. As macro conditions evolve in 2024, fundraising totals will shed light on investor sentiment and risk tolerance in the crypto space.

Most active investors in 2023. Source: Cryptorank

DWF Labs and Coinbase Ventures led crypto deal activity in 2023, participating in 42 deals each. Hashkey Capital and Polygon Ventures also ranked highly, completing 41 and 40 deals respectively. The top 10 most active crypto investors in 2023 each participated in over 30 deals for the year.

Number of Funding Rounds by Investor and Category. Source: Cryptorank

Polygon Ventures led gaming crypto (GameFi) deals in 2023 with 13 total rounds. This aligns with broader investor interest in the category - gaming and NFTs have attracted significant capital historically as well. For example, over the last 3 years, Animoca Brands has been the most active backer with 123 GameFi and 58 NFT investments.

GameFi & Social

Monthly fundraising by category on number of rounds 2021-2023. Source: Cryptorank

Funding deal volume peaked for GameFi and NFTs in late 2021 through early 2022. April 2022 saw the high point with over 50 rounds in each category. However, deals have declined since then.

In contrast, the monthly volume of deals in social crypto (SocialFi) has held relatively steady from 2022 into 2023, averaging 10-15 rounds per month.

Monthly fundraising by category on USD of raised 2023. Source: Cryptorank

In terms of capital raised, March 2023 GameFi deals totaled $133 million, while SocialFi aggregated $204 million that same month. However, amounts pale compared to April 2022’s heights of $2.49 billion raised for GameFi alone. Historical strength in GameFi and NFTs has slowed in 2023 as speculation cooled and markets consolidated. However, the more consistent pace of SocialFi deals implies backers still see promise in the category's fundamentals.

Regional Funds By Category

Number of projects by jurisdictions of funds. Source: Cryptorank

The United States led globally in the total number of crypto fundraising deals, followed by Singapore, a crypto-friendly jurisdiction. China also saw significant fundraising activity, ranking high in total deal volume.

CHAPTER 6 Top Sales

Top Sale in 2023

CrypToadz #4030 was purchased on the OpenSea marketplace for 1,055 Wrapped Ethereum (WETH), or more than $1.6 million worth. But it might be a fat-finger mistake or wash trades.

Top #10 Sale in Summary

Top Sales in 2023. Source: NFTGo

• Games

• PFP

• Art

• Land

• DeFi

• IP

• Domain name

• Social

• Music

Top #10 Most Profitable Address

Top #10 Whales

Top #10 Marketplace

CHAPTER 7 TOP PROJECTS To Watch Out

NFT Projects Poised to Release Tokens in 2024

NFTs have exploded in popularity, with new projects launching constantly across blockchains like Ethereum, Solana, and Polygon. Many NFT collections have roadmaps indicating future token releases, which can provide additional utility and incentives for holders. This chapter analyzes several hyped NFT projects likely to airdrop or release native tokens in 2024.

Haven's Compass

Haven's Compass is an upcoming free mint of 2,000 NFTs on Skale Network, created in partnership with Pixel Realm Labs. The Compass NFTs promise future airdrops of the project's $HAVEN governance token. Holders will also get free entry to tournaments, in-game skins, and whitelist spots for other Skale mints. The token has the potential to provide governance rights and monetization within the Haven gaming ecosystem.

Dark Frontiers

Dark Frontiers is releasing a pass for its upcoming play-to-earn sci-fi multiplayer game. The pass's 1,200 NFTs will grant utility including token airdrops of $DARK, the game's native token. $DARK can be used for in-game activities like crafting, upgrading, and merging items. The tokenomics include a burning mechanism to reduce supply over time. As an integral part of Dark Frontiers' play-to-earn model, $DARK offers long-term utility for pass holders.

Citizen Conflict

QORPO ecosystem has announced exciting new campaigns set to launch in the coming weeks. A key initiative is their soft-staking program that rewards Citizen Zerø NFT holders with $QORPO tokens. As the native currency, $QORPO will grant power and influence across QORPO products. NFT collectors will get priority, with loyalty points accruing over time based on holding tenure.

Overworld Play

Overworld Play's NFT mint of creature avatars sold out quickly, hinting at strong community interest. The team is now focused on a presale of its utility token, which will power its upcoming MMORPG game. $MNCT token airdrop will be in Q1, used for staking, governance, transactions, and monetization within Overworld's gaming metaverse.

Mittaria Genesis

Mittaria Genesis is backed by Animoca Brands. Holders gain access to a variety of valuable utilities. They receive airdrops of future NFT collections, priority access to in-game experiences, and staking rewards. Most notably, Mittaria Genesis holders is likely to be airdropped the $LUCIUM token. $LUCIUM is set to be the cornerstone of the broader Translucia ecosystem initiative. Translucia is led by T&B Media, which has the backing of Thailand's largest company, CP Group. This gives the token strong credibility. Otherwise, $LUCIUM will likely have a pre-ICO sale for Mittaria holders, granting early access. The token is expected to power captivating seasons and rewards systems, similar to game passes.

KartParty

KartParty is launching a PVE web3 game with 700 NFTs in its genesis collection. KYZ utility tokens will be airdropped to holders, granting access to future NFT collections. KYZ will also enable priority access to in-game experiences and staking rewards. Most notably, KartParty NFT holders gain airdrops of the game's PVE tokens.

Block Games

Block Games aims to connect players across games and blockchains via a decentralized cross-platform network. The project is collaborating with Polygon Studios to develop web3 games. Block Games is set to launch its native BGG token, which will serve governance functions and enable portable profiles across supported games. BGG offers utility for network participants.

As NFTs evolve into fuller-fledged ecosystems and games, native tokens are becoming key to aligning incentives, enabling governance, and rewarding active community members. Savvy NFT holders are eyeing roadmaps and locking in collections early, before prices surge in anticipation of associated token releases.

Top Projects To Watch Out

NFTs: Memecoin $MEME

Memeland has built tremendous momentum in 2022 as an emerging player in the NFT space. With its talented founding team, vibrant community, and universal meme theme, Memeland is poised for a breakout year in 2024.

Key trends to watch:

• Metaverse Launch: Memeland has teased development of a meme-themed metaverse called Treasure Islandz. If executed properly, this could become a top virtual world for the web3 community.
• Staking and Gamification: Memeland's staking mechanisms like Growing and Questing have proven successful in driving engagement. More features like rankings, missions, and competitions can further boost retention.
• Expanded IP: New original characters and meme universes beyond the existing MVP, Potatoz and Captainz have huge potential. Memeland could become a media empire.
• Tokenomics Innovation: The $MEME token needs novel utility and integration to stand out. Tying it deeply into the metaverse experience will be key.

Memeland has grown its community to over 300k Twitter followers in under 2 years. If it continues gaining users at this pace, its community could rival top NFT brands. With its strong foundation, Memeland has the potential to join the top 10 NFT projects by market cap within the next 2-3 years if execution goes smoothly.

NFTs: Mocaverse

Backed by Animoca Brands, Mocaverse is poised to be a leading metaverse ecosystem in 2024.

Current NFT floor price: 4 ETH

Current NFT holders: 3,800+

Key trends to watch:

• Launchpad for partners and animoca portfolio projects
• Moca token airdrop (not fixed) and staking mechanisms to engage holders
• Exclusive events, activities and rewards to drive retention

Partnerships

• Leveraging animoca's 360+ portfolio projects for collabs
• Integrations with other major metaverses like The Sandbox and Decentraland
• Big brand partnerships (e.g. Gucci) to expand reach and credibility

Overall, Mocaverse aims to achieve massive growth in key metrics like volume, floor price within the next 18-24 months. This is reasonable given animoca's resources and the rapid pace of growth in the NFT space. Execution of the roadmap and continuing to provide real utility will be key to achieving mainstream adoption. The community and partnerships already established position Mocaverse to potentially emerge as a top 10 NFT project by market cap by 2025.

GameFi: Shrapnel $SHRAP

Gameplay

• Core FPS gameplay inspired by Escape from Tarkov provides familiarity but with innovation around extraction mechanics
• RPG elements like classes, skill trees, and persistent loadouts add depth
• High risk, high reward extraction mode encourages tactical decisions
• Player-created content like cosmetics and maps enables creativity

Technology

• Use of Unreal Engine 5 brings AAA-quality graphics and performance
• Integration with Anybrain for anti-cheat enhances integrity
• Custom blockchain built on Avalanche ensures speed, security and low fees
• Professional tools empower user generated content creation

Business Model

• Play-to-earn model allows monetization of time spent in-game
• NFT cosmetics and items enable trading economy between players
• Staking and node structures incentivize ecosystem commitment
• Marketplace and secondary sales provide revenue streams

Community

• Strong emphasis on governance, feedback and collaborative development
• Reputation system encourages positive behaviors
• Social channels and promotions foster engagement
• Focus on creators provides content and careers

However, standing out in a crowded genre dominated by big brands will require flawless execution across gameplay, technology and community building. The competition will be fierce, so constant innovation and involvement of its community will be key.

Ecosystem: Gonesis

Gonesis is the genesis NFT brand of NFTGo(@nftgoio). It is aimed to build a NFT-based digital ecosystem that engages billions of users, and onboard them into Web3 and metaverse, by leveraging attractive contents, art and exclusive benefits. Gonesis is not only a NFT brand, but also a content and model layer for metaverse. Gonesis includes two NFT collections

Gonesis Ring: A 2K ERC721 collection. It's a pass and a top-tier asset with exclusive benefits within NFTGo's next-gen ecosystem.

Gonesis Traveler: A PFP collection, featuring 10K unique Travelers who play roles as core characters in the Gonesis worldview. It also helps to build a good vibe for connections, resources and knowledge sharing.

Music: Sound.xyz

Web3 and NFTs are still early. As the market matures by 2024, music NFTs could see higher traction as an alternative revenue stream for artists. If Sound continues its artist-friendly focus and provides a great user experience, it could establish itself as a leading music NFT destination within the next 1-2 years.

Music NFTs on Sound are stored on Ethereum/Optimism using IPFS, allowing collectors to own a unique copy of the song. Features like ownership comments make NFTs more engaging. It offers some other features like free listing, bulk purchases, listening before buying, curator rewards etc. This could attract artists and collectors.

Aggregating NFTs from other platforms is smart as it provides more choices to buyers in one place. Integrations with payment platforms also makes purchase more accessible. Ability for artists to edit music post-drop is an interesting feature that provides more control. Limited open editions also allow capitalizing on momentum.

Top artists like Snoop Dogg are dropping music NFTs on Sound. If more big names join, it could drive significant interest and volumes. Nevertheless, critical mass of artists will be important.

Reporting tools and analytics dashboards allow artists to track royalties, sales etc. This transparency can build trust and loyalty.

As a niche music NFT marketplace, Sound faces competition from platforms adding music verticals like OpenSea. Maintaining competitive differentiation will be key.

Creator: Story Protocol

Story Protocol aims to be a decentralized protocol and infrastructure for tracking attribution and enabling frictionless licensing of creative IP like stories, art, music etc. This could enable new models of open and participatory storytelling and franchises. The protocol seems architected around simplicity, with "nouns" (data structures for IP, licenses, relationships) and "verbs" (modules for actions like licensing, revenue distribution). This modular approach could allow diverse applications to be built on top.

Licensing and royalties distribution modules aim to make licensing more seamless and programmable compared to opaque legal negotiations today. This could enable remixing and co-creation at internet scale. It plans to embrace internet abundance and communities instead of just defending IP. This ethos combined with potential for open IP could lead to new models of fan engagement and capital formation.

If Story Protocol succeeds in getting traction and developer/creator buy-in, we could see exciting new participatory entertainment franchises and funding models emerge by 2024. For instance, a new transmedia franchise born on the protocol involving both pro creators and fans.

However, a key challenge will be overcoming inertia of current IP infrastructure and getting adoption at scale. This will likely require demonstrating new opportunities for value capture to creators/studios.

Community: ARC

One of the most talked about projects is ARC, which stands for Asia Rediscovered Community. ARC is reimagining the private members' club model using NFTs and a decentralized community approach.

At its core, ARC is a members-only community connecting influential individuals in the global Asian diaspora. The goal is to leverage these connections to create value through a social venture studio model. ARC issues NFTs as proof of membership, aligning incentives around contributing ideas, resources, and networks to the community.

Unlike other NFT communities focused on flipping NFTs for profit, ARC incentivizes long-term value creation. The social venture studio produces new projects, businesses, and intellectual property, distributing value back to engaged community members over time. ARC aims to build an engaged, diverse community focused on giving value to receive value.

A key differentiator is ARC's focus on connecting both Web3 natives and newcomers. While housed on Web2 platforms like iOS, Android, and physical spaces, ARC maintains an inclusive ethos. The curated membership process ensures committed, value-adding members rather than speculators.

ARC facilitates connections through digital and real-world channels. Features like the ARC app and ARC Playgrounds physical locations enable networking and collaboration. ARC also encourages members to self-organize into interest-based subgroups for more organic co-creation.

The long-term vision is a sticky community where members can self-organize and create value. As one of the most talked about 2024 projects, ARC shows the potential of community-driven Web3 models to move beyond hype and deliver tangible value. If successful, ARC could provide a blueprint for community-focused platforms creating collaborative businesses, products, and brands.

CHAPTER 8 Whale Movement Analysis

Over the past year, the NFT market has undergone significant changes and shifting trends. As key players look to navigate this evolving landscape in 2024 and beyond, we examined data and behaviors from NFT "whales" - the industry's largest holders and traders - during 2023.

Whales are defined as individuals or entities that hold substantial amounts of specific high-value NFTs, maintaining diversified portfolios of bluechip and other assets. Through on-chain analytics, 394 wallets were identified as whales based on their capital size, transaction patterns, and influence.

Distribution of assets in the NFT Market. Source: NFTGo

As of 2023, these whales collectively held NFT assets worth approximately 700K ETH, accounting for around 20% of the total market value. This concentration of wealth signifies whales' importance as bellwethers; traders closely follow their on-chain movements for signals, and projects aim to attract their engagement.

While representing a small subset of NFT holders, whales' decisions and strategies impact overall market directions and prices. As the space matures, maintaining a balance between whales and broader retail participation will be key to healthy expansion. But for now, these influential traders remain drivers and barometers of the NFT ecosystem as developers roll out new products, brands tap into use cases, and regulations evolve. Their 2023 positions and behavior provide insights that can help guide strategic decisions industry-wide in 2024.

Whale Trends and Analysis

Whale Mint Trends

Whales mint trends. Source: NFTGo

There were a total of 36,284 whale mints over the course of 2023. Monthly mint numbers peaked at 13,185 in January, driven by spikes of 1,607 mints on 1/15 and 5,209 on 1/19.

February also saw elevated activity with 5,978 mints, but then monthly mints declined. March (3,528 mints) and April (5,486 mints) had small rebounds. From May to December, monthly mint numbers stagnated below 1,000, signaling reduced engagement by whales.

Daily mint amounts ranged from 0 to highs of 5,209, but the average was around 100 mints per day. End-of-month spikes were seen e.g. 1,254 mints on 6/28, pointing to potential month-end purchasing patterns.

Peak activity occurred around January when NFTs were still surging in popularity. But as hype faded, whales minted fewer new NFTs.

Whale Behavioral Traits

Buy/sell ratio

Whale Buy/sell Ratio. Source: NFTGo

Overall, there was higher selling volume than buying volume in 2023 - total sells were 22,804 ETH versus total buys of 15,503 ETH. There appears to be a general downward trend in monthly trading volumes as the year progressed.

Monthly trading volumes fluctuated significantly. The highest total monthly volume occurred in February 2023 with buys of 5,828 ETH and sells of 8,998 ETH. The lowest monthly volumes occurred in August and September.

The daily volumes also varied widely, with some days seeing very high trading activity such as 2/1/23 which had 1,096 buys and 1,892 sells, compared to other days with minimal activity like 9/1/23 with just 22 buys and 22 sells.

Top NFT Whales To Watch Out

Punks OTC, a notable blue-chip asset holder within the NFT sector, exhibits a substantial footprint in the market. An analysis of 6,626 on-chain transactions reveals a pattern of 86 mints, 2,776 acquisitions, and 1,417 disposals, predominantly centered around the CryptoPunks collection. Despite holding a limited number of CryptoPunks, Punks OTC demonstrates a high-frequency trading behavior with this collection. A notable transaction includes a same-day trade of CryptoPunk 9109, yielding a 6 ETH profit. The data indicates an average holding period of under three months, with trading activities on CryptoPunks averaging twice daily, underscoring a strategic flipping approach.

Widely recognized as a KOL on Twitter, Franklin has strategically focused his trading on prominent NFT collections, including BAYC, MAYC, DeGods, and Milady Maker. These collections are highly sought after in the NFT industry. In addition, his trading records show a significant involvement with Blur Blend, particularly between June and August, indicating a preference for this platform.

Franklin's on-chain activity, totaling 24,630 transactions, comprises 9,142 buys and 9,192 sells. This balanced buy-sell ratio suggests a trading strategy oriented towards short-term holdings rather than long-term investments. Franklin's influence extends beyond trading; his insights and analyses shared on Twitter not only reflect his trading acumen but also impact and inspire the trading decisions of others in the NFT space.

This trader emerged as a top participant in the NFT market in the last quarter of 2023. The trading portfolio predominantly features transactions in blue-chip NFT collections like Azuki, Pudgy Penguins, DeGods, and MAYC. Notably, the use of Blend has been instrumental in amplifying trading frequency. This trader also exhibits a forward-thinking approach by focusing on NFTs that bridge Web2 and other Web3 industries. Notably, their activity includes trades in the Michelin 3xplorer Club and the minting of over 700 Uniswap V3 Positions. An upward trend in their trading volume became particularly evident from November, aligning with a surge in overall market activity. This trend suggests a strategic response to evolving market conditions and opportunities.

Recent trading activities of this address spotlight the TinFun collection, launched in January 2024. This trader demonstrates agility in capitalizing on emerging market opportunities, achieving notable success. Alongside these ventures, a diversified trading strategy is evident, with focused investments in established collections such as y00ts, MAYC, and Moonbirds. This approach suggests a balanced risk management strategy in NFT trading.

The address has seen a significant 675% increase in trading activities over the last three months. With 12,705 on-chain transactions, including 4,148 buys and 4,211 sales, the address demonstrates a short-term holding strategy in its trading behavior.

This trader engages with a diverse range of NFT collections such as Meebits, Azuki Elementals, TinFun, JeerGirl, mfers, Honey Comb, and more. The use of various platforms for trading is evident, with a majority of purchases on Blur and sales spread across NFTX, SudoSwap, Blur, and Floor Protocol. Currently holding 25 different collections, the address showcases a wide interest and a strategy of diversification in the NFT space.

Chungster is a notable trader in the NFT industry, known for his year-round active trading. His impressive on-chain activity, totaling 13,368 transactions, breaks down into 1,239 mints, 4,220 buys, and 5,586 sales, highlighting his dynamic role in the NFT market. Chungster's engagements reflect a diverse interest in both mainstream and niche collections. He's invested in established names like Azuki, BEANZ, BAYC, DeGods, Pudgy Penguins, and more, showcasing his affinity for high-value NFTs. Simultaneously, he explores less conventional collections such as Pixelmon, Lil Pudgy, Sproto Gremlins, and more, demonstrating a broad scope of interest and a knack for identifying emerging trends.

Chungster's minting choices are often aligned with collections that have generated significant buzz, including Frog Squad and Azuki Green Bean. This indicates a strategic approach to participating in potentially high-impact projects. Furthermore, his portfolio reveals an interest in the burgeoning gaming sector of NFTs, evident from holdings like Otherside Vessels and Otherdeed Expanded, pointing to his foresight in diversifying into gaming-related NFTs.

This address boasts a substantial history in the NFT market, with 12,440 on-chain activities, including 6,233 buys and 3,028 sales. A significant focus of these transactions is on prominent collections like Azuki, Moonbirds, Lil Pudgys, and BEANZ, as well as the more recent TinFun collection. The trading frequency of this address ranges between 20 to 50 transactions per day, predominantly executed through the Blur Blend.

Despite a trading history concentrated on well-known NFT collections, a closer look at the current portfolio reveals a different strategy. It predominantly comprises less recognized collections such as TinFun, AOI Engine, Honey Comb, and Springfield Punks. This discrepancy between trading activity and holdings indicates a nuanced approach, balancing between high-profile trades and investments in emerging collections.

Zymerce entered into our vision as a discerning long-term holder in the NFT market. Demonstrating strategic acumen, he often acquires NFTs in bulk during market dips, resulting in a substantial and diverse portfolio. His on-chain activity, totaling 13,311 transactions, comprises 4,100 mints, 2,694 buys, and 2,689 sales, underscoring a significant commitment to gaming NFTs, as shown by extensive minting in Otherside Mara, Otherdeed Expanded, and Otherside Vessels. Contrary to many traders who maintain a consistent pace, Zymerce has notably slowed down his on-chain activities since November. Despite this reduction in recent transactions, his holdings have grown by 20% over the past six months, now encompassing 3,368 NFTs.

Starting in November 2023, coinciding with the onset of the bull market, this address has emerged as an active trader in the NFT space. With a substantial record of 19,130 historical on-chain activities, including 17 mints, 9,621 buys, and 8,531 sales, the trader demonstrates a focused approach on established collections like TinFun, BEANZ, y00ts and Pudgy Penguins. This trader's strategy involves bulk purchasing of these collections followed by swift flipping, indicating a preference for short-term holdings over longer investments. Additionally, his attention to some collections like Sybil Samurai also suggests his familiarity with NFT characteristics and market values.

Drewaustin has achieved remarkable success in the NFT market, securing 20x profits from various collections, including the collection like FLUF World. His investment acumen is evident in his adept selection of both established and emerging collections. A prime example of his strategic foresight is the early investment in the Opepen collection, initiated in May, which has consistently generated significant returns.

As a shrewd investor, Drewaustin leverages his understanding of platform diversity to maximize opportunities. He skillfully identifies and invests in promising yet relatively unnoticed projects, demonstrating an exceptional ability to spot and capitalize on emerging trends in the NFT space.

Nyax employs a high-velocity, volume-centric trading strategy, adeptly capitalizing on price dips in the NFT market for quick profits. This trader's nuanced handling of specific collections like OCB and Milady Maker showcases a profound understanding of their unique market dynamics and values. In contrast, for widely popular collections such as BEANZ, Nyax adopts a bulk buying approach, focusing on rapid sales for accelerated turnover. His recent trading activities pivot towards profit maximization through minting, which include profitable mints from collections like Sproto Gremlin and Shishi. This approach not only highlights Nyax's skillful market navigation but also his ability to exploit timely opportunities for profit.

Nakiri exhibits a strategic and profitable approach to NFT trading. Notably, he achieved a 5x return on investment by actively trading Otherdeed for Otherside, starting with an investment of just 6.9 ETH. His astute trading in the Milady Maker collection also led to a 3x profit, with an average acquisition cost of 3.13 ETH and an average selling price of 3.53 ETH. In dealing with trending collections like TinFun, Nakiri's strategy of bulk purchasing and quick flipping resulted in 2x profits, buying at an average of 0.57 ETH, which is notably lower than the current floor price.

Nakiri's success can be attributed to his keen ability to follow market trends and capitalize on short-term opportunities. This is exemplified by his bulk trading in meme-oriented collections like Fatzuki, demonstrating his skill in seizing timely profit-making opportunities.

Pranksy, an OG in the NFT space, has a significant trading footprint with 96,862 total on-chain activities, including 27,566 mints, 9,462 buys, and 13,194 sales. His approach involves active batch minting and a commitment to portfolio diversity. In mid-2023, Pranksy minted around 1.1K NFTs, notably 121 from Ether Avatar, while also exploring many lesser-known projects. Impressively, his portfolio spans 767 collections, with 90% in micro-scale NFTs, reflecting his deep market knowledge and ability to identify potential in a wide range of projects. This diversified investment strategy has effectively minimized his risk exposure to single-project volatility, enhancing the potential for high-value asset discovery. These strategic choices have resulted in a substantial net profit of 7.58K ETH for Pranksy, balancing profitability with a varied investment approach.

Jiang2018 adopts a focused trading strategy centered on popular yet relatively affordable collections such as MAYC, BEANZ, and Moonbirds. This strategy is characterized by bulk purchasing and quick sales, indicative of a strong preference for flipping. Furthermore, Jiang2018 predominantly sends holdings to Blend and lists them on Blur. This tactic not only facilitates liquidity through the use of NFTs as collateral but also enables profit generation from these assets.

An analysis of Jiang2018's historical trading activities reveals a significant emphasis on BEANZ, accounting for about 40% of transactions. However, with only one BEANZ currently held in the portfolio, it's evident that Jiang2018 views these NFTs more as vehicles for short-term trading rather than long-term investments.

Flooringlab has been a representative 'whale' in the NFT market. In the middle of 2023, this investor made substantial moves, purchasing an impressive 990 NFTs from renowned collections such as Dinks, Azuki Elementals, BAYC, and MAYC, contrasted by a mere 92 sales. Notably, most acquisitions were transferred to the Floor Protocol's contract, a strategic decision likely aimed at optimizing portfolio organization and maximizing returns.

A review of flooringlab's current holdings reveals a focus on quality over quantity, with 333 Dinks and 18 DeGods, indicating a refined approach to portfolio management. Despite the prevailing bear market, flooringlab's consistent and aggressive acquisition strategy suggests a long-term investment perspective, banking on the potential future appreciation of these assets.

Vonmises, an active NFT trader, has accumulated a notable 8,105 on-chain activities, comprising 2,160 mints, 1,319 buys, and 874 sales. This activity has yielded a significant net profit of 5.4K ETH. His portfolio, diverse and encompassing 263 collections, with half being micro-scale NFTs, reflects his deep understanding of the NFT industry.

Unique among traders, Vonmises predominantly utilizes OpenSea for his transactions, contrasting with the prevalent trend of trading on platforms like Blur or using the Blend contract. His trading history shows a focus on lesser-known NFT collections, such as Cyberkongz and CryptoDickbutts, demonstrating a strategic approach to uncovering value in less mainstream projects.

Beginning in November, this address has emerged as a top active trader in the NFT market. The trading focus is primarily on high trading volume collections like TinFun, DeGods, Yogapetz, and Azuki. The strategy involves bulk purchases and rapid sales, indicative of a short-term holding approach. This is further evidenced by the nearly equal daily buy and sell transactions, highlighting a flip-centric trading style.

Additionally, this trader's practice of sending all holdings to Blend is noteworthy. This move suggests a dual strategy: firstly, a confidence in profiting from the purchased NFTs, and secondly, leveraging these NFTs as collateral to enhance liquidity. This approach reflects a savvy understanding of both the market's profit potential and the benefits of liquidity management in NFT trading.

Coodi.eth employs a high-frequency trading approach, primarily focusing on micro-scale NFT collections and executing bulk transactions. This trader typically operates with narrow margins per transaction, yet showcases a discerning eye for unique NFT collections. Notably, successful flips of collections like Killer GF, Wolf Game, and Karafuru have cumulatively netted over 15 ETH in profits. Despite a total profit of 22.83 ETH, Coodi.eth exemplifies how a modest budget can be effectively leveraged to unearth and capitalize on unique, lesser-known NFT projects.

Died adopts a strategic approach to NFT trading, focusing on acquiring well-known collections in bulk during price dips and holding until market recovery to sell for profit. A notable instance is with Otherdeed for Otherside, where Died.eth achieved a substantial 295.51 ETH profit, buying at an average of 35.4 ETH and selling at 50.95 ETH. Additionally, Died.eth actively flips collections in response to fluctuating floor prices, as seen with Azuki, where an average profit of 0.2 ETH per NFT was realized within a single day.

Moreover, Died.eth utilizes various trading platforms to optimize sales. For prominent collections like Azuki, Blend is the preferred platform, while for less-known collections, platforms like LooksRare and OpenSea are used to achieve better listing opportunities.

This trader came to our vision for earning a notable 61.43 ETH profit from Pudgy Penguins, with an average purchase cost of 14.64 ETH per NFT. Additionally, he has gained 18.78 ETH from trading BAYC, buying at an average of 30.29 ETH each. Their trading patterns suggest a focus on capitalizing on price fluctuations rather than long-term holding. For instance, the average holding period for BAYC is typically under a week, indicating a strategy of buying during dips and selling during price surges.

Furthermore, this trader employs varied strategies for different collections. In high-value collections like BAYC, they tend to buy only one or two NFTs at a time. Conversely, for relatively less expensive collections like Pudgy Penguins, he opts for bulk purchases, waiting for an opportune moment to sell.

Ryanzar has been active in trading Pudgy Penguins, and has accrued a profit of 30.19 ETH from this collection. Notably, ryanzar's current portfolio contains no Pudgy Penguins, indicating a strategy focused solely on trading rather than long-term holding in this collection. A broader review of his activities reveals trades across 17 collections, including profits of 13.9 ETH from Doodles and 8.65 ETH from Kith Friends.

Ryanzar's predominant use of OpenSea suggests a selective trading approach, targeting NFTs primarily when their prices fall below the floor price. This strategy underscores his focus on value-driven trading, buying opportunistically during market dips.

This address stands out for its bulk purchasing strategy and is a quintessential example of a whale holder in the NFT space. A review of the portfolio reveals significant holdings: 62 Azukis, 93 Azuki Elementals, 20 y00ts, 3 CryptoPunks, and more. In the past month, over 200 NFTs from collections like TinFun, JeeGirl, and Pudgy Penguins were added, with most being transferred to the Floor Protocol's contract. This move likely serves to streamline his portfolio management and optimize returns.

Despite the bear market conditions, this trader's continuous and sizable acquisitions of NFTs suggest a commitment to a long-term investment strategy, anticipating future appreciation in value.

Bored demonstrates an investment strategy finely tuned to capitalize on trending topics within the NFT space. A prime example is his two-month-long engagement with the Opepen Edition, amassing over 700 Opepens at its peak, which subsequently yielded a 3x profit. This investor's transaction history, encompassing a wide array of projects like Metropolis World Passport Official, Sappy Seal, and the Nifty Portal, reflects a diversified approach. Bored's strategy appears to be centered on identifying and investing in promising, yet potentially undervalued, NFT projects.

This address skillfully leverages Blur Blend and the Floor Protocol's contract to optimize profits. By purchasing NFTs through Blend and transferring them to the Floor Protocol, the trader effectively minimizes investment risks while enhancing asset management. Their trading activities reveal a preference for blue-chip collections such as Azuki, DeGods, Meebits, and Milady Maker, balancing liquidity with strategic bulk purchases during price swings.

Within a single month, this trader realized a 9.48 ETH profit from trading 22 Pudgy Penguins. This success underscores the trader's adeptness at navigating market fluctuations and capitalizing on timely opportunities in the NFT space.

This address exemplifies a trader with a distinct preference in their collection choices. A deep dive into their portfolio reveals a concentration on collections such as OVERWORLD INCARNA, RTFKT SKIN VIAL: EVOX, and RTFKT X NIKE. Notably, this trader steers clear of high-value, blue-chip collections, opting instead for NFTs that align with personal interests.

In their collection, RTFKT Clone X, RTFKT SKIN, and OVERWORLD INCARNA collectively account for over 80% of total holdings, underscoring a dedicated investment approach. Furthermore, a significant profit of over 100 ETH from the CLONE X-X TAKASHI MURAKAMI collection highlights a successful blend of personal interest with his investment decisions.

Publicimage strategically targets high-profile NFT collections such as CryptoPunks, BAYC, and V1 Punks. This investor has shown skill in leveraging market downturns to their advantage. Additionally, Publicimage.eth employs a multi-address trading strategy, frequently transferring NFTs to another address (0xbbaec56b725a0b9501a655d7d1b48555af637b70), keeping the primary account clear of holdings. This approach indicates a complex strategy designed to enhance transaction efficiency, improve asset management, and potentially increase privacy and security in their dealings.

This address skillfully navigates the NFT market using a blend of batch buying, bottom-fishing, and diversification. For instance, in June, the trader executed bulk purchases of multiple NFTs from collections like DeGods, Azukis, and MAYCs. Demonstrating bottom-fishing expertise, they bought Fatzuki NFTs at a low 0.2 ETH and sold them at 0.3 ETH, efficiently capitalizing on price differences.

Although the portfolio comprises only 4 collections, the trader's activities span over 100 collections, indicating an ability to adapt to and follow market trends closely. Recently, this trader has shown particular interest in high-volume collections such as TinFun, DeGods, MAYC, and more, reflecting a strategic focus on popular and active segments of the market.

BrandonKangFilm demonstrates a strong affinity for Yuga Labs' collections, maintaining significant holdings including 92 Otherside Maras, 92 Otherdeed Expanded, 41 MAYC, and 31 BAYC. Notably, he has listed 17 BAYCs at prices exceeding 200 ETH, with the highest, BAYC #2342, marked at 888 ETH. As an established figure in the NFT space, BrandonKangFilm boasts a diverse portfolio of over 600 collections and more than 3,000 NFTs. His latest interest lies in the RTFKT x NIKE DUNK GENESIS CRYPTOKICKS, indicating a keen eye for projects that merge Web2 and Web3 innovations.

Dingaling is well-known for their steadfast investment in the Azuki collection, evidenced by holding 121 Azukis, 194 Azuki Elementals, and 32 BEANZ. Additionally, this investor displays a keen interest in emerging NFT projects. Notably, in mid-2023, Dingaling minted 870 NFTs, demonstrating a proactive approach to engaging with new ventures. Towards the end of 2023, investments were made in collections like Fortune Founder's Key by AoFverse. With a diverse portfolio of over 11,000 NFTs, Dingaling's deep understanding and engagement with the NFT market are clearly evident.

Machibigbrother is renowned for his expertise in flipping NFTs. As a prominent KOL on Twitter, he expresses his loyalty to BAYC, and he was recognized for actively trading BAYC, MAYC, Azuki, Azuki Elementals, Ether, and DeGods. His adept use of contracts such as Blur Blend, and his ranking in the top 5 of Blur's Season 2 Leaderboard, further attest to his proficiency in NFT trading.

Known for his bulk purchase strategy, Machibigbrother maintains substantial holdings in his preferred collections, choosing to sell when the price is favorable. Currently, his portfolio is heavily invested in Crazy Lizard Army and DeFi Apes, holding 458 and 359 units respectively, indicating a strategic approach to holding and flipping within the NFT market.

This address, known as a blue-chip holder, has demonstrated a focused approach in trading primarily within the Pudgy family, including Pudgy Penguins, Lil Pudgys, and Pudgy Rods, amassing around 20 ETH in profits. Distinguished from short-term flippers, this trader exemplifies a long-term 'diamond holder' strategy, exemplified by acquisitions like Pudgy Penguins at an average cost of 3.93 ETH.

Their success stems from recognizing the intrinsic market value of these NFT collections and patiently waiting for substantial price appreciation. Additionally, the trader's keen awareness of market trends is evident in their involvement with the Opepen Edition, from which they have secured modest profits. This trading behavior reflects a deep understanding of the factors underpinning the value of these collections, guiding timely and strategic transactions.

This address engages primarily in trading less expensive NFT collections, adopting a selective buying and selling strategy that prioritizes risk reduction over high profits. The most significant gains for this trader have been realized from collections like The Grapes, Gitcoin Presents, Opepen EditionPixelmon - Generation 1, and Checks - VV Edition.

The nearly equal frequency of daily purchases and sales indicates a preference for short-term holding. Currently, Lil Pudgys dominate their portfolio, accounting for 90% of holdings. This is particularly noteworthy given the recent notable increase in Lil Pudgys' floor price. This trader's active engagement with the market and adaptation to its fluctuations demonstrate a deep understanding of NFT market dynamics.

This address engages primarily in trading less expensive NFT collections, adopting a selective buying and selling strategy that prioritizes risk reduction over high profits. The most significant gains for this trader have been realized from collections like The Grapes, Gitcoin Presents, Opepen EditionPixelmon - Generation 1, and Checks - VV Edition.

The nearly equal frequency of daily purchases and sales indicates a preference for short-term holding rather than long-term investment. Currently, Lil Pudgys dominate their portfolio, accounting for 90% of holdings. This is particularly noteworthy given the recent notable increase in Lil Pudgys' floor price. This trader's active engagement with the market and adaptation to its fluctuations demonstrate a deep understanding of NFT market dynamics.

LaserCat397, known as the builder of TinFun NFT, is also a prominent NFT holder and trader. His extensive collection includes over 856 different series and more than 3,000 NFTs. He primarily focuses on lesser-known collections such as GhOstly Ghosts, Sugartown Oras by Zynga, and Galactic Konquest, showcasing a diverse range of interests.

Drawing on insights from successful NFT collections like Otherdeed for Otherside, Azuki, and Moonbirds, from which he garnered a substantial 180 ETH in profits, LaserCat397 has honed his expertise. His portfolio is notably diverse: TinFun represents 11.86%, Otherdeed for Otherside, Milady Maker, Otherside Koda, and Otherdeed Expanded together account for about 20%, and the remaining holdings constitute over 50%. This distribution highlights LaserCat397's in-depth research and understanding of the NFT industry.

This address exemplifies a blue-chip holder in the NFT space. The bulk of their portfolio is dominated by The Potatoz, The Captainz, and Lil Pudgys, collectively comprising over 90% of their holdings. He has successfully doubled his investment in collections such as Checks - VV Edition, The Potatoz, and The Captainz.

Additionally, this trader has engaged with niche collections, including Steamboat Willie, Delabs Adventure Pass Official, and Kitaro World, showcasing a diverse investment approach. Notably, their trading activity appears to be strategically timed, coinciding with periods of heightened activity in the NFT market rather than maintaining a year-round presence.

This address exhibits a preference for more affordable NFT collections, such as Lil Pudgys, Rare Apepes, and Pixel People. A review of their portfolio reveals holdings in 330 different collections, valued at 3.17 ETH, yet he has achieved over 50 ETH in net profits. This impressive return is largely attributed to strategic investments in collections like OPEN EDITION BY KEVIN ABOSCH and Dori Samurai, among over 800 others.

Notably, the trader's focus on emerging collections is evident in their minting activity, with over 1000 mints dedicated to such projects. This keen interest in niche NFT ventures has not only been profitable but also highlights an alternative and successful approach within the NFT industry.

This trader effectively utilizes the Blend contract for dual purposes: investing in the NFT space and gaining liquidity by using NFTs as collateral. An analysis of their trading behavior reveals a focus on established, high-volume collections such as Azuki, DeGods, Meebits, MAYC, and TinFun.

With a total of 3,566 purchases and only 1,523 sales, it's evident that this trader predominantly uses their NFT holdings as collateral to secure ETH liquidity. Notably, there's an absence of investment in emerging collections, suggesting a strategy centered on leveraging established NFTs for both investment returns and liquidity.

This trader adeptly utilizes a bulk purchase strategy, typically acquiring less than 10 NFTs at a time for quick flipping. Their choice of collections is diverse, ranging from well-known ones like Doodles and the Captainz to lesser-known projects such as GullyGang GPTs and OVERWORLD INCARNA. While favoring bulk purchases for established collections, they cautiously experiment with one or two units from lesser-known collections to assess market potential.

An examination of their portfolio reveals selective trades: approximately 1.5x profit from collections like the Captainz and Pudgy Penguins, and a 3x profit from Otherdeed for Otherside. This success is attributed to selective investment in various NFT collections, underpinned by a thorough understanding of their market values.

This trader's activity, totaling 11,309 on-chain transactions with 5,608 buys and 4,043 sales, typifies a short-term investment approach in the NFT market. Their selective trading over 300 collections, often buying just one or two units per collection, underscores a cautious and discerning strategy in choosing NFTs.

The portfolio is well-balanced, featuring notable holdings like 20% in Azra Games - The Hopeful, 14% in Otherdeed for Otherside, and 11% in E4C Rangers Gold Edition. While their quick flips typically yield a modest profit of around 0.01 ETH per unit, this careful selection process effectively minimizes risk.

This address specializes in trading less-known NFT collections, accruing about 7 ETH in profits from series like Bulls and Apes Project - Genesis, Apes Together Strong Official, and Muri by Fabrik. Notably, this trader does not engage in minting, focusing solely on market trading. Recently, the focus has shifted to collections like Steamboat Willie, employing a strategy of bulk purchasing followed by sales during price fluctuations. This approach marks a departure from previous tactics, where the trader typically bought only a few NFTs and sold them within a day. Adapting to market dynamics, this trader's evolving strategies demonstrate a wise and flexible approach in the ever-changing and volatile NFT market.

CHAPTER 9 PREDICTIONS FOR 2024

Web3 gaming will see significant expansion in 2024

Web3 gaming will see significant expansion in 2024. The current $4.6 billion market is forecasted to boom to $65.7 billion by 2027. Despite the crypto winter, investors put $600 million into web3 gaming in Q3 2023, signaling strong confidence.

Growth drivers are web3 games becoming more enjoyable as developers focus on smooth gameplay and immersive narratives, rather than just play-to-earn rewards. Players also value owning NFT assets like skins, weapons, and avatars.

So in 2024 and beyond, we'll see the launch of AAA-quality web3 games that compete with traditional gaming by blending ownership of NFT in-game assets with appealing gameplay and story. Users have full control and ownership over rare digital assets that unlock abilities, status and access.

Interoperability standards will also grow in importance. NFTs and tokens need to seamlessly integrate across metaverses and games. Open ecosystems will start successfully eating into closed traditional gaming market share.

Overall, NFTs represent the transition happening from centralized closed systems to user-owned open Web3 platforms. Gaming NFT use cases will demonstrate people want to truly own digital assets to upgrade identities and progress in desired virtual worlds.

We're seeing a new wave of studios focused purely on blockchain gaming, bringing extra gaming expertise. At the same time, traditional gaming veterans are getting more involved through partnerships or their own web3 projects. Blending these skillsets will raise quality.

• There is a diverse range of projects spanning many different gaming genres and models including RPGs, sports fantasy, digital collectibles, metaverse worlds, play-to-earn, and more. This shows how blockchain technology can transform many aspects of gaming.
• Interoperability and cross-platform capabilities are going to be increasingly important. As the space matures, projects will need to integrate with each other and allow assets to flow between different games/metaverses. Standards around NFTs and tokens are crucial.
• The majority of projects are still early-stage and fostering community growth. Turning these engaged communities into sustainable economies will determine which projects thrive long-term. Strong tokenomic designs are key.
• Regulation remains an uncertainty but also an opportunity. Jurisdictions taking positive stances can nurture web3 gaming leadership and talent development. The trends point to gaming being a significant gateway to mass web3 adoption.

In summary, innovation and funding is flowing into web3 gaming with underlying blockchain technology opening up new possibility spaces. There will likely be further consolidation as ecosystems grow. The next 1-2 years will be crucial for projects to solidify communities and ship compelling playable experiences to expand the market beyond early adopters to mainstream gamers.

Most existing token economic models remain conceptual rather than fully functional

Token issuances are likely to slow in 2023 after a flurry of activity in 2022. Most existing token economic models remain conceptual rather than fully functional. Currently, tokens largely serve as incentive mechanisms for NFT mints or as proof of participation/ownership.

However, as ecosystems expand we'll see token utilities evolve across more domains including:

• In-game asset transactions - tokens will become native currencies for purchasing rare items or perks
• Underpinning on-chain services like lending/borrowing platforms
• Protocol governance and rewards for contribution
• Access passes minted as NFT tickets for token holders

Interoperability between various NFT projects and metaverses will also grow in importance. Tokens that work across multiple applications will capture more value.

Emerging categories like SocialFi and NFTFi highlight potential for innovation by blending finance and community ownership. New bonding curves controlled by DAOs can maintain stability while directing rewards to contributors.

Overall, expect to see tokens and NFTs converge more tightly. Tokenized licenses that prove ownership over certain IP rights or digital artifacts will become more common. There will also be growth in platforms for fractionalizing high-value NFTs into multiple trustless tokens for trading.

Crypto winters allow the most resilient protocols and engaged communities to solidify foundations. When markets eventually recover, many pioneering NFT projects will leverage symbiotic token systems to catapult Web3 adoption to new heights.

Bitcoin eco will explode in popularity in early 2024

Ordinals have exploded in popularity since launching in early 2023, fueling a surge of creative projects leveraging Bitcoin's capacity for storing data immutably on-chain. Semi-fungible BRC-20 tokens built on top of Ordinals have seen particular interest.

This NFT momentum on Bitcoin has resulted from a combination of fresh capabilities being unlocked, plus a growing user base and renewed hype around Bitcoin itself. Major price run-ups and adoption milestones for BTC will likely feed back into more demand for experimental NFT innovation on the network. We should also keep an eye on the projects building for Bitcoin such as stacks.btc. and Glypher.io.

Looking ahead, we could see another wave of activity and a new fungible token protocol launching soon that aspires to become a standardized currency system across the Bitcoin ecosystem. For example, if Runes gain traction, there could be a spill-over effect into NFTs as users spend their new tokens.

Volumes in 2023 exceeded $100 million, but still represent less than 1% of the NFT market share. As more builders grasp Bitcoin's differentiation and craft novel experiences, its NFT transaction volumes could plausibly surge 10-100x. Exodus from former leader Ethereum may partially flow into Bitcoin as its brand and inscribed tokens build mindshare. Ultimately Bitcoin NFTs have potential to positively impact BTC value accrual during the next bull run.

Overall, Bitcoin's advantages in security, longevity and credibility will allow it to remain the hub for high-quality NFT projects entering 2024, even as other chains grab subsets of users.

NFTs can interact with brands targeting Generation Z

Today's 18-year-olds were born around the year 2000. In the next decade, Gen Z and young millennials will dominate consumer spending. Unlike previous generations, these digital natives make purchases aligned with their values and only promote brands they genuinely identify with.

According to research, Gen Z relies heavily on social media like TikTok for entertainment and advice. Memes are central to how they communicate and process emotions. Nearly half are interested in the metaverse. This means brands must create digital experiences that resonate with Gen Z values.

NFTs allow just that - they are creative, community-driven, and digitally native. Their meme culture matches Gen Z communication styles. The community aspect also appeals to Gen Z's desire for belonging and participation.

PFPs are today's digital symbols, representing identity and self-expression. For brands targeting Gen Z, launching branded PFP collections could attract passionate brand advocates.

Beyond profile pictures, metaverse brand worlds create immersive digital experience. These persistent 3D environments allow Gen Zers to interact with brands in a native digital habitat.

To summarize, NFTs enable brands to align with Gen Z through creative memes, digital self-expression, community participation, and metaverse brand worlds. Leaning into these digital native traits is key for brands to build genuine resonance.

CHAPTER 10 A Must Read For Beginners 2024

What are NFTs and Why Do They Matter?

NFT stands for non-fungible token. Non-fungible means the tokens are unique and not interchangeable with each other. This makes NFTs different from cryptocurrencies like Bitcoin and Ether which are fungible (interchangeable).

NFTs represent unique digital assets like artwork, collectibles, game items, or real world assets that are linked to the blockchain. The NFT acts as a certificate of ownership and authenticity for that specific asset.

Each NFT has a digital signature that distinguishes it from other NFTs. This signature cannot be altered, acting as permanent proof of provenance on the blockchain.

NFTs enable digital scarcity and verifiable ownership of anything that can be tokenized - from digital art and videos to concert tickets and even physical assets like real estate. The owner of an NFT has the rights to that unique asset.

Just as rare luxury goods appreciate in value in the physical world, unique and scarce NFTs also gain value as collectibles and digital memorabilia. There is a growing market for NFTs in art, sports, gaming and beyond.

By representing real world assets on the blockchain, NFTs enable these assets to be traded securely on digital markets. The transparency of blockchain transactions also verifies authenticity and prevents fraud.

In summary, NFTs introduce scarcity, provenance and liquidity to formerly non-digital assets. Their potential applications are vast, and NFTs are poised to transform ownership and exchange across many industries.

Overview of Key NFT Protocols

Non-fungible tokens (NFTs) require standardized protocols to enable seamless interoperability between decentralized applications (dApps). Without shared standards, NFTs cannot efficiently transfer across different platforms and marketplaces. Standardization provides the critical infrastructure for an interoperable NFT ecosystem.

The ERC-20 standard defines fungible tokens on Ethereum, like cryptocurrencies where each token is identical. In contrast, NFTs are unique digital assets that require different protocols to manage ownership, tracking, and transfers.

ERC-721: The Leading NFT Standard

ERC-721, has emerged as the leading standard for NFTs on Ethereum. It provides a clear definition of ownership, enforceable ownership transfer, and a transparent transaction history. ERC-721 allows tracking of individual tokenized assets like collectibles, art, virtual land, etc. The standard enabled early NFT experiments like CryptoKitties.

ERC-1155: Semi-Fungible Tokens

The ERC-1155 standard introduces semi-fungibility. Tokens under this standard have the same underlying characteristics but differ in attributes like ID numbers. ERC-1155 provides more flexibility - assets can be fungible, non-fungible, or semi-fungible. This allows applications like blockchain gaming with both fungible in-game currencies and unique NFT items.

ERC-6551: Enhanced NFT Identity

ERC-6551 enhances NFT identity by letting an NFT own other NFTs or tokens. For example, a digital pet NFT could hold tokens representing accessories that enhance its abilities. The pet retains those enhancement tokens when transferred to a new owner. ERC-6551 also enables bulk transfers, allowing cheaper purchases of NFT sets.

As NFTs evolve, new standards are emerging to enable advanced functionality:

ERC-998 allows composability of NFTs, letting an NFT own or reference other NFTs and tokens.

• ERC-809 introduces rental contracts to govern NFT leasing.
• ERC-4626 proposes a tokenized basket standard for aggregating NFTs and other assets.
• ERC-4907 brings royalty standards for payments to NFT creators.
• ERC-4971 enables fractionalized ownership of NFTs.
• ERC-4626 standardizes structured data attachments to NFTs.

As NFT adoption increases, standards will likely continue evolving to meet new needs. But broad interoperability depends on wide usage of foundational standards like ERC-721 and ERC-1155. NFTs offer immense potential, but only if the ecosystem develops sound technical infrastructure. Standards bodies like Ethereum’s EIPs and the InterWork Alliance are leading this vital standardization effort.

NFT Lingos

NFT Top Analysts

How to Participate in NFTs in 2024

Purchasing NFT concept tokens and purchasing NFTs themselves are two different things. If you want to purely invest in the NFT sector, you can buy NFT-related tokens like $APE, $MEME, $SAND on exchanges (not investment advice).

If you want to participate in the NFT collectibles market, or buy and sell NFTs for profit, NFT marketplaces like OpenSea and Blur provide avenues to purchase various NFT assets. There are also NFT platforms focused on crypto art, like SuperRare and Art Blocks.

If you want to get more deeply involved in the NFT industry, there are many ways you can participate. At the same time, you need to consider what type of involvement you are looking for, such as:

Artist

Create and release your own art digitally, or collaborate with a project to release digital collectibles

Investor

Purchase promising NFT tokens on major exchanges

Mint, buy and sell NFT assets or companies

Explore NFTFi markets like staking and lending for yield

Brands

Issue NFTs representing brand value to increase customer engagement and loyalty

Entrepreneur

Initiate and build projects in NFT-related fields

Trader

Buy and sell NFTs for profit

How to Mint NFTs

In this part we will help you understand what it means to mint an NFT. We will also share some channels and strategies for finding hot projects. Finally, we’ll provide a comprehensive scoring template so you can easily evaluate any project.

So what does “minting” mean?

First, let’s review the NFT lifecycle. When an NFT is minted, it means that a unique digital asset is created on the blockchain (with its own immutable ID number). The NFT can then be used for trading, transferring or burning.

In general, minting an NFT is like subscribing for a new stock issuance, often at a relatively low starting price. For example, BAYC had a mint price of 0.08 ETH. Some NFTs also provide free mints, like mfer, goblintown and DIGIDAIGAKU.

Minting an NFT is very simple. Here are some key steps to get started on Ethereum (the largest NFT ecosystem).

Step 1: Set up a wallet

It’s best to create a separate minting wallet from other wallets. A separate wallet helps protect your other assets. Then you need to purchase some ETH and put it in your wallet.

Set up the wallet

Download and install a browser extension (like https://metamask.io/)

Choose "Create Wallet"

Create username and password

Note down recovery phrase

Now when you click "Connect Wallet", MetaMask will pop up automatically in the browser extension

Step 2: Find a project to mint

Finding promising projects to mint is critical. You can check the NFTGo calendar to see upcoming launches.

But remember, not every project will be profitable. You need to identify good opportunities yourself. Here are some dimensions to consider:

First, evaluate the project's social channels. Assess follower counts and engagement (replies and retweets), plus the overall hype and conversation around the project. Are any major influencers or investors backing it?

Second, is the community active with a growing member count?

Third, the website design and roadmap.

Step 3: Understand minting metrics

If you want to dig deeper into data on NFT minting, here are some metrics to refer to:

• Mint count/trends
• Total mint
• Sales count
• FOMO index
• Number of minters
• Whale mints
• Unique minters
• Mint price

Watching metrics like mint activity and FOMO index can help gauge real market interest. More mints and an upward trend signals a hot market. High mint rates show people's interest. A high FOMO score implies recent surge in demand. This often drives up the floor price.

More whale mints implies market confidence. More unique minters can demonstrate the project's broad appeal.

Step 4: See top minters

To view who minted first or minted the most NFTs for a project, you can learn more details by checking the leaderboard of top minters.

Some tips:

Before minting...

Observing demand indicators is also helpful. Watch minting velocity, floor price vs mint price. If minter count rapidly increases in a short time, secondary market prices rise along with trading volume, it may indicate the project could be hot.

After minting...

Selling off a portion after success helps recoup costs. Liquidate some at peak hype, then hold the rest long-term. And always mint directly via the website to avoid scams. Stick to official channels, not random links.

How to Purchase Tokens for NFT Projects

Many NFT projects launch their own native tokens. We'll explain using $APE, the native token for Yuga Labs. (Note: Not investment advice)

Step 1: Sign up on an exchange listing $APE tokens

Choose suitable platforms, fill out applications, register accounts as needed

Provide email and set a password. Many exchanges also require personal details and ID verification per KYC

Enable two-factor authentication on the account for added security

Step 2: Deposit funds into the account

Fiat cannot be directly exchanged for $APE. So first, acquire a cryptocurrency that can be traded against $APE, like Bitcoin (BTC) or Ether (ETH), then exchange it for $APE. (Skip to step 3 if BTC or ETH tokens are already stored in the exchange account) To deposit BTC for example, copy the exchange’s deposit wallet address, and paste that address when sending BTC from your wallet.

If stored in a separate wallet, find the “Deposit” link under account options and copy the wallet address. Then you can send the required amount of BTC or ETH to that address.

Step 3: Purchase $APE

After logging into exchange account, click "Markets" or "Exchange" links, search for desired currency pair like $APE/BTC. Click “Buy”, specify either the $APE amount you want or the BTC amount you want to spend. Review full transaction details including all fees and total cost before submitting.

How to Purchase an NFT

Step 1: Log in to NFTGo, bind your exchange account and wallet address. Click "Pro trade", you can see the Best Listing rankings.

Step 2: Click "Buy Now" and complete payment, the NFT will then enter your wallet.

Additionally, under "Listings" we can see newly listed NFTs, and use the valuation function (Est. price) to find potentially undervalued NFTs.

Step 3: If you want to bid on an NFT on the exchange, you first need to use SWAP in the virtual wallet to convert ETH to WETH.

Step 4: Then use WETH to place bids.

If the bid succeeds, the NFT will enter your wallet.

Tips for Buying and Selling NFTs

Understand how different traits affect rarity and value for an NFT collection. Rare traits determine the NFT's price. You need to identify undervalued NFTs with upside potential.

Pay attention to liquidity. An NFT needs high liquidity for profitability.

For liquidity:

Punks/Apes > Blue Chips > Mid Tier > New Projects > Meme Projects

• Monitor Twitter, official sites, Discord: Look at active user counts on Twitter, website quality, Discord engagement to gauge if the team is operating the NFT project diligently.
• Observe multiple indicators: NFTGo has many project metrics. Watch real-time trading, recent transactions to predict current sentiment and future trajectory.
• Investors with smaller capital can focus on short-term flips, quickly trading in and out of projects. Target 1.5-2x returns per trade to beat opportunity cost. Cap each investment at 20% of capital for risk control.
• Follow alpha leaks for blue chip projects, and major announcements (whale purchases, big developments, partnerships, roadmap changes, new utilities) that could impact value.