How do you analyze NFTs with tools and determine their future?
Contrary to popular belief, blockchain technology is not just about cryptocurrencies, but many other options; NFT is one of them. This growing sector is quickly becoming one of the largest markets in the blockchain industry. As the NFT market continues to grow, the need for NFT tools is increasing as more investors try to find the next best non-crypto asset.
While the benefits of NFT have become apparent over the past 2 years, this marketplace is considered by many to be a bubble, and investing in its space can be intimidating for newcomers. As is the fact that there are always scammers with malicious intent (just like in any other sector). Needless to say, it's critical to have the proper tools to make investment decisions when dealing with NFT. Consequently, let's start exploring NFT analysis tools.
Whether you are new to NFT or already have your collection in the market, NFT analysis tools will help you assess the availability and rarity of specific assets and provide details to guide your investment strategy. That's where we'll start in this article.
What is NFT?
NFT (Non-Fungible Token) means a non-interchangeable token. They are digital assets or described as a type of digital certificate that represents a wide variety of intangible and tangible objects. This includes digital art, music, paintings, virtual real estate, postcards, videos and more. They cannot be reproduced or equated with any asset that looks like them, for the reason that all non-interchangeable token assets are unique in themselves.
The uniqueness of NFTs is what creates a scarcity for them, hence increasing their value. When you buy an NFT, ownership is transferred to you, although the creator receives royalties whenever his work is sold. Unlike conventional cryptocurrencies like Bitcoin and Ethereum, which are fungible and retain their standard value even after they are exchanged, NFTs cannot be directly exchanged for each other. Their ownership can be easily verified, forever eliminating the need for third-party verification.
Before we delve into NFT analysis tools, let's take a brief look at the history of NFTs.
A brief history of NFT
We can trace the origins of NFT to the colored coins that were issued on the Bitcoin blockchain in 2012-2013. These colored coins represented real assets - art or real estate - and were used to prove ownership of those assets. In 2017, Crypto Punks were issued by two people named John Watkinson and Matt Hall on the Ethereum blockchain of the American studio Larva Lab. It didn't stop there, in the same year another named project attracted an investment of $12.5 million.
After these events, there was a sudden growth of NFT in 2021 as more and more people became interested in digital art and the benefits associated with it. The most expensive NFT is Beeple's "Everydays: The First 5,000 Days," which sold at auction for more than $69 million on March 11, 2021.
The NFT trend has opened up new opportunities for creators, allowing them to sell their art around the world and still receive royalties for their work. A good example is Berlin's Net Art Gallery, where buyers were able to show their appreciation by supporting the artist and the gallery. The NFT narrative allows people to create a market for almost anything with traceable evidence, and their ownership history is verified.
Key features of NFT:
Digital asset: It is represented by digital collectibles such as paintings, artwork, music, real estate, games, etc., with a genuine certificate backed by blockchain technology to prove ownership.
Uniqueness: It cannot be faked
Exchange: you can sell it to others for a fee, using cryptocurrencies as payment.
The best NFT analysis tools to watch out for
According to a DappRader analyst report, the NFT Market recorded $10.7 billion in trading volume in the third quarter of 2021, a 704% increase over the previous quarter, and the Ethereum network accounted for more than 77% of NFT trading volume. With NFT analysis tools, investors can now recognize unique assets.
Given the number of NFT tools available today, you can evaluate and review them before making an investment decision. With the help of appropriate tools, you can find good NFT projects that will be worth a fortune in the near future.
In no particular order, we have assembled several NFT tools to help you in your search for new NFT projects to invest in. They play an important role in due diligence, as incorrect data can get you involved in a fraudulent project. They will also help you identify rarity in NFTs, news sources and trading venues.
Icy.tools
The analytics tool icy tools is almost like Nansen. The platform is primarily for NFT, and you can either buy a weekly pass or buy the NFT ICY Founders Club (which gives owners lifetime access and can be sold on OpenSea). Free users can see what they do, but you must either subscribe or own the NFT Founders Club to use the full feature.
The ICY NFT Founders Club has a collection of 1,700 membership cards, of which 1,649 for early access buyers give them lifetime access and 51 are reserved for promotions and giveaways in the future. Its Discord server is a valuable resource for people using icytools, and those with a token will have access to Founders Club channels. Once you connect to the server with a wallet containing your membership card, access will be granted automatically. Another important detail is that the server uses Collab.land, a convenient tokenized community management system designed for anyone who can create tools to manage their community.
Rarity.tools
Rarity Tools is a well-known NFT tool for creators. The Rarity.tools platform uses a unique and simplified method of ranking individual NFTs that makes it easy to determine how rare a particular NFT is.
To get the overall rarity of an NFT, the rarity scores are added together to determine which NFT will have the highest ranking. NFT enthusiasts can easily compare the relative value of different NFTs on the platform, making it easy to exchange and trade NFTs. Some of the best NFT projects for rarity tools are Mars Wars, CryptoPunks, Bored Ape Yacht Club, Hashmasks, etc.
In addition, Rarity.tools can be used to store NFT objects from the same collection, track new updates and add new features to the platform. The platform also has functionality that allows you to sort by feature category, giving you a new view of things. Other unique features, such as aesthetics and quality mixes, can help make NFT even more valuable. Either way, don't invest in an NFT solely because of unique features.
OpenSea
OpenSea is the largest and most well-known NFT marketplace, founded by Alex Atallah and Devin Finzer. It is used to buy, sell and trade NFT, digital assets, virtual collectibles, etc. The platform goes beyond collectibles to become a marketplace for digital assets such as gaming items, music, domain names and more.
OpenSea has an easy-to-use interface that makes it easy for newcomers to navigate the platform, create NFTs and trade. As the largest platform, many fraudulent NFTs have been listed, and the platform hopes to address this problem with recently implemented measures. While these measures may help curb fraudulent NFT purchases, victims of fraudulent products will still not be able to recover their assets because the marketplace is decentralized. So make sure you do your due diligence before investing in any NFT platform.
Opensea is available on mobile devices for easy access and also provides some helpful content, including tips on how to avoid fraud and stay safe on the decentralized network.
Nansen
Nansen is used by serious NFT traders and offers the most comprehensive NFT market analysis focused on individual wallets with a unique understanding of NFT market movements. Novice NFT collectors will find the volume of data overwhelming, but experienced NFT collectors/traders will find an interesting amount of useful information at their fingertips.
CryptoSlam
The CryptoSlam platform is another analytical tool that helps traders make decisions about which collection they should invest in. By displaying notable data about NFT sales, including sales volume, number of transactions, owners, and upcoming NFT resets, users can make the most appropriate investment decisions. One of the most notable features of the platform is the daily NFT collection, which is tracked by volume. Top-selling collections can be viewed in a variety of time frames: 24 hours, 7 days, 30 days, or all time.
The platform simplifies traders' work by providing a single view of all the top-selling NFTs for each day, and it changes daily as data is processed from OpenSea and dozens of other NFT trading platforms. Studying sales data is important for traders, especially when they intend to determine whether they are buying on a peak or a dip, or whether the collection has been in a downtrend or uptrend.
General questions to ask before investing in NFT
While there are several factors to consider when investing in an NFT project, these questions can be a great way to help determine the reliability of a project.
How many NFT collectibles are available?
What marketplace is NFT listed on?
Do they have a Twitter account, Discord, YouTube or other NFT platforms where enthusiasts spend their time?
Does the creator or artist have a community, is it strong, and where can they be found?
Conclusion
The main reason to use NFT analysis tools is to help limit the amount of fraud on the major trading platforms. Investing in NFT can be time-consuming, somewhat risky and nearly impossible unless you spend hours on social media platforms and NFT trading platforms looking at the million NFTs available.
However, with analysis tools, accurate research can be done, saving time, effort and money. Also, depending on what you want from NFT, analysis tools can help you choose from a variety of options, drowning out all the noise and fuss of most projects on social media platforms, providing only facts and figures to help you navigate and make investment decisions.
Have you used any of these tools? Or any of the others? Write in the comments.
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