NFT Investment Guide 2022
In 2022, NFT is still a fertile ground for those who understand and keep up with the trend. In this article, I will help you understand more deeply about NFT and how to find opportunities in this field in 2022
Review NFT Investment Guide 2021
- Create NFTs and sell on the market: Opensea alone, there are currently more than 31 million NFTs listed on the exchange, a huge number showing the attraction of this market.
- Buy low sell high: At the time of March 2021 when the article was published, the trading volume on OpenSea reached $148 million. This number grew strongly after that time and peaked at nearly 5 billion dollars.
- Game: Surely you all know the fever of the Play-to-Earn trend in 2021. Starting with the explosion of Axie Infinity, on-chain gaming has become a phenomenon and NFT is an indispensable element for that success.
- Storage: Despite being a necessary infrastructure for NFT, Storage has not yet received the necessary attention. Most of the NFT projects are still hosted on the centralized servers. The price of storage tokens also fluctuates differently in 2021.
- NFT x DeFi: NFT is becoming a trend of DeFi projects, projects starting from Uniswap V3 to Orca, Zapper, DexGuru,... all have their own NFTs and many ways to apply them with those NFTs.
The trading volume of NFT works increased nearly tenfold from over $80 million at the peak in early 2021 to over $700 million in early 2022.
In addition to the transaction volume mentioned at the beginning of the article, other indexes of the current leading NFT marketplace, Opensea also have a remarkable increase from the number of NFTs sold, revenue, users,...
Thanks to its properties, NFT is gradually being applied in many different fields. There are specially developed branches that have created major trends in the market, from which many unicorns have been born. Some of the highlights were things like Axie Infinity, the project that started the Play-to-earn trend, Axie's capitalization reached $ 1 billion on July 22, 2021 and sometimes peaked at more than $ 10 billion.
In addition to being used as in-game items, NFT is also applied in many different fields such as metaverse, music, video, real estate, ...
NFT is gradually being integrated with many projects in different ways. Currently, DeFi projects are tending to apply NFT to their products, typically, instead of airdropping tokens, projects airdrop NFT and require users to use that NFT to interact with the project, for future rewards.
NFT is the gateway to attracting new users to Crypto and it is a market with huge profit potential. Below, I will summarize the ways to play in accordance with the trend of 2022.
“Things that can be tokenized will be tokenized.”
Retroactive hunting in the NFT Field is currently quite appropriate in the context of more and more projects being developed around. There are many projects that have issued tokens and airdrops for users such as LooksRare, Bored Ape Yacht Club,...
Suitable branches for retroactive hunting include:
The top collectibles
Currently, collectibles tend to airdrop to users who own their NFT and it is likely that this will continue in the near future.
However, not every project will airdrop to holders and not every project will airdrop successfully. To increase your chances of receiving valuable airdrops, you should choose Top NFT projects with strong communities.
The disadvantage of this way of playing is the high cost of participation at the present time.
Projects related to NFT
Currently, there are many development projects around NFT such as NFT marketplace, NFT fragmentation,... You should experience these projects to have a chance to receive retroactive in the future.
To get the token airdrop, you have to find the project that has not launched the token yet.
Some potential projects include: Opensea, Foundation, Mirror.xyz, Gem.xyz, Sound.xyz, Glass.xyz, Fractional.
You can buy high value collectibles on Ethereum but don’t do anything rash such as playing games on it. As shown above, the current NFT picture is not just limited to the Ethereum ecosystem anymore. There are many different ecosystems and each is gradually finding its potential branch. You can monitor ecosystems and find suitable investment opportunities in the NFT segment.
Some tools that I find very useful in NFT investment can be mentioned as:
- Nansen: This is one of the tools that I use the most in NFT investing. Nansen has utilities such as analysis, statistics and data updates in an intuitive way, helping users to have more information in their investment decisions.
- NFTGo: NFTGo is an overview dashboard of the NFT market. You can see the NFT rankings, related activities and which NFTs are bought the most by whales.
- Context: Context helps to aggregate transactions on many NFT marketplaces, helping you to know which NFT is bought at what price, at which exchange. Besides, you can also monitor the wallet to know user activities related to NFT.
- Old but gold: And of course, don't forget the basic forms of profit related to NFT such as creating NFT works and then selling or buying low and selling high. Although the market has now passed a hot development stage, if we know how to do it right, we can still make a profit.
A few next scenarios that I think might happen to NFT include:
In short term
Perfection and Explosion
Good ecosystems will find the right development branch for NFT, helping to create exceptional value to attract new users to their platform.
- The most valuable collectibles will continue to reside on Ethereum.
- NFT gaming will flourish on Solana and Binance Smart Chain.
- NFTs related to the entertainment industry will develop on the Binance and Terra platforms.
- NFT on ecosystems like Avalanche, Near,... is also very potential.
- Development of NFT applications
GamFi, Metaverse, SocialFi, DeFi,... NFT can be integrated in many branches of Crypto, they will gradually become an indispensable piece when participating in ecosystems.
NFT will be your identity when joining Crypto. In the past major trends: Gaming needs NFT, Metaverse needs NFT, SocialFi (typically StepN) also needs NFT. What's next?
Storage is essentially the shovel in the NFT gold rush. However, decentralized storage solutions (Decentralized Storage) currently do not keep up with the growth of the market and most NFT projects still choose to store on centralized servers.
If DeFi have cross-chain, NFTs also need to be rotated between projects. Imagine you can hold items in SandBox and use them in Decentraland,... this will be a prosperous future for NFT when platforms grow strong enough to serve this.
NFT and life
NFT is gradually coming into life and becoming more widely accepted, the market for NFT will not only be confined to Crypto but will also spread to many external fields.