An NFT is an acronym for Non Fungible Token. It stands for a unique digital art that is distributed according to the number of supplies available. An NFT project is a collection of NFTs released by a group with a finite supply. The NFT market has gone drastically low since 2022, however, there are chances of it being as popular as it was in 2021 as it has shown strong resilience. Also, in recent times there has been impressive increase in its trading volume.

How to Do Your Own Research (DYOR) before buying an NFT:

1.Run a background check on the seller.

Running a background profile check on the seller before buying an NFT helps to check credibility.

It is preferable to check out why the NFT was established, the "Why" behind the project.

Also, whilst checking out the seller's profile, it is important to do a background check on previous NFT projects created by the funder. The success of the previous projects can also help improve your choice as well in buying an NFT.

2. . Accessibility and rarity distribution

Whilst trying to buy an NFT, checking for its accessibility and rarity distribution is important as it helps to know how much is distributed.

There are 3 different ways to check for its rarity, this includes: super rare, rare and ordinary. The super rare kind of NFTs are usually the more preferable ones to buy as its distribution is usually lower than 3 percent, making it more valuable.

Then we have the rare NFTs, a percentage of 5- 10 percent of these NFTs are being distributed.

Finally, we have the ordinary NFTs, these ones are usually common as its distribution is often above 85 percent.

3. Lookout for the roadmap and what stage the project is in at the moment

This gives an insight on how far the project has gone. A roadmap shows the goals of a project, hence it provides insights to potential buyers about the project. An NFT that has done well in its roadmap goes out to show how well the founders intend to go with it. It also helps to determine if the project will be for short or long term.

4. Check for the utility of the project

Utility refers to the value proposition of a project. For everything that is created, there is something it's serving. Therefore it is important as a buyer to look out for the value proposition of a project before purchasing the NFT.

5. The Community

The community of an NFT determines the success of an NFT. A goal oriented, engaging community gives a positive vibe in determining whether or not to buy an NFT. If the community is dead or unengaging, then it's advisable to go in search of another NFT.

Top NFT Projects

According to 2023 statistics, the following NFT projects rank the top:

1.Cryptopunks

Cryptopunks is an NFT that falls under the PFP ( Profile Picture) category. It was launched in 2017 by Larvalabs. Crypto investors use the NFTs to depict their level of affluence by using it as their display/profile picture, making it fall under the PFP category.

The simplicity and distinctiveness of the design contributed to its success. It was initially given to people for free, particularly early cryptocurrencies and Blockchain adopters. Also, Its limited supply of 10,000 enabled its rarity and increased its value. All these contributed to making Cryptopunks a success in the NFT market.

2. Bored Ape Yacht Club ( BAYC)

This NFT shot to fame in 2021-2022. During these times, lots of celebrities used it as their profile picture. BAYC had a total of 10,000 supplies. It has lots of benefits, such as rewards for its owners, exclusive events fit holders, as well as limited edition merchandise for owners as well.

BAYC became a success as a result of its unique artwork, as people were drawn to its uniqueness which created a sense of exclusivity. Community building,as there was a members only discord channel. Also, the limited supply of 10,000 BAYC making it scarce also made it gain popularity as it is perceived to be valuable. Also, the integration of on-chain utility such as exclusive access to events made the project a success.

3. Other deed for otherside

Unlike BAYC and Cryptopunks, this one doesn't fall under the PFP category, rather it is a metaverse real estate collection.

The collection has a total supply of 200,000 - 100,000 currently in circulation and another 100,000 will be made available to holders who have contributed to the development of Otherside. Holders of Bored Ape Yacht Club and Mutant Ape Yacht Club were able to claim Otherdeed for Otherside back in April 2022.

4. Mutant Ape Yacht Club (MAYC)

MAYC was the first benefit holders of BAYC received. It consists of 20,000 mutant apes, 10,000 of the collection was given to BAYC holders whilst 10,000 were sold in a public auction.

MAYC was a success as a result of its rarity, its boisterous community.

5. Azuki

Azuki is an anime themed NFT collection. It consists of 10,000 collections. This NFT had a successful sell out as it sold a volume of $30 million in just 3 minutes.

Azuki's uniqueness and rarity contributed to its success. Also, it appealed to anime lovers, successfully transitioning anime lovers from web2 into web3. Azuki can be said to be an NFT that bridged the gap between web2 and web3.

Conclusion

The NFT market is a well with the possibility of gaining traction again as it did in 2021. This is true because, despite its economic gloom, it has shown resilience. Whilst planning to buy an NFT, it is important to do proper research before investing, metrics such as checking out for the background of the founder/team, the accessibility and rarity, the roadmap,the utility and the community. All these will help your judgement before investing.