There are literally millions of non-fungible tokens (NFTs) on the market right now, making it challenging for investors to know where to begin. Blue chip NFTs are one of the most well-liked choices if you’re looking for NFTs to invest in over the long run. Investing in non-fungible tokens (NFTs) has emerged as the new frontier of the cryptocurrency industry. However, it can be challenging to keep up with all of the initiatives in the area, and it’s simple to get conned.
What is a Blue Chip NFT?
A blue chip NFT is a well-established digital asset with a high potential for value preservation or growth over time. Despite the fact that these investment-grade NFTs can be found in a wide variety of forms and sizes, there are a few techniques to identify a blue chip NFT.
A blue-chip NFT project will likely have a distinct vision and a capable team to execute it. These initiatives frequently contain NFT artwork that is distinctive and recognizable, a flourishing community, and a strong social presence. Since some NFT projects sold for hundreds of thousands to millions of dollars, the NFT boom of 2021 is remembered in history. A small number of potential blue-chip projects have arisen in recent years, and as the market expands, blue-chip NFT collections are likely to become more typical.
Everything About Blue Chip NFT
A project may be categorised as a blue chip if it has a strong reputation for dependability and can weather a bear market. Reputations can be used to identify NFT initiatives. A collection or artist can only be considered a blue chip project if the NFT market as a whole believes that they are of the finest quality.
The phrase “blue chip” refers to the most valuable blue chips in the poker game. It is now used to express what individuals believe to be the best solutions accessible in a number of different disciplines.
Investment In Blue Chip NFT
Investors frequently look for blue chip NFTs because of their long-term financial stability. While many initiatives fizzle out after a few months, blue chip NFTs continue to hold their worth over time. Even in the current bear market, the average price of BAYC is now circling about 100 ETH. Being a “member of the gang” is comparable to joining a club of wealthy investors and social elites, and many people view holding a blue chip NFT as a symbol of achievement. Having one could grant owners intellectual property rights and the go-ahead to market their NFTs in part.
Blue-chip NFTs can be a wise investment, but the majority of them are out of reach. Start with the least expensive investment in the collection if you are a beginner. They are reasonably priced and usually the most straightforward to resale for a quick profit. If you don’t have a large sum of money to invest, look for NFTs with the potential to become blue-chip securities in the future.
Some Examples of Blue Chip NFT
One of the founding members of the NFT community is CryptoPunks. One of the first cryptocurrency collectable projects, it consists of 10,000 NFTs that were produced on Ethereum and released by Larva Labs back in 2017
The NFT collection, which consists of pixel-based avatars of humans, apes, zombies, and aliens, has garnered a lot of media attention lately. A rare extraterrestrial Punk (#7523) sold at Sotheby’s for $11.7 million in June 2021. Punk #5822 smashed the previous sales record in February 2022 when it sold for $23.7 million (8,000 ETH).
Bored Ape Yacht Club, the area’s newest resident, has already made substantial progress. 10,000 NFTs, all of which are cartoon apes with randomly generated expressions, fur, clothing, accessories, and other features, are put together in this project. These traits are used by the BAYC community to calculate an ape’s rarity.
The Bored Ape Yacht Club NFT collection has been able to attract the most pop artists out of all the initiatives. A few famous people who own at least one BAYC NFT are Snoop Dogg, Steve Aoki, Justin Bieber, Paris Hilton, Eminem, and Timbaland.
Bored Ape #232, the most expensive NFT in the collection, sold for the equivalent of $2.85 million (1,080.69 ETH) in January 2022. According to information from CoinGecko, the collection’s market valuation was $2.5 billion in March 2022. One of the most precious collections available on the NFT market, a Bored Ape has a floor price of over $250,000.
Doodles is a collection of colourful line-drawn avatars that were generated at random using hundreds of visual attributes. It is one of 10,000 profile picture (PFP) NFT collection. The project’s creators are Scott “Burnt Toast” Martin, Evan “Tulip” Keast, and Jordan “Poopie” Castro. The collection was made available on Ethereum in October 2021 for 0.123 ETH each mint.
This community-driven strategy has paid off, significantly accelerating the project. Doodles NFT now has a floor price of just over $35,000. The collection’s market valuation was above $350 million as of March 2022.
How to Buy Blue Chip NFT?
There are three easy steps required to purchase a Blue Chip NFT.
- First, users must create a digital wallet that can communicate with the blockchain.
- SecondlyUsers require ETH in their wallets in order to fund the transaction.
- Thirdly, customers must buy the product and pay the transaction fee.
You may always purchase these premium NFTs from reliable NFT marketplaces like OpenSea if you’re interested. Another choice is to make purchases through LooksRare, which charges a 2% transaction fee. OpenSea, in comparison, retains 2.5% of each transaction. Several well-known NFT projects have their own markets.
The NFT market continues to develop, and more blue-chip NFTs will probably continue to appear. Due to the general absence of long-term data, it may be difficult to determine whether the project will be a future “blue-chip.”