Navigating the NFT Market: 5 Tips for Creators and Collectors
November 20, 2024
Non-fungible tokens (NFTs) exploded in 2021 as the masses adopted this innovative technology. NFT’s appeared everywhere. Celebrities backed NFTs and they were mentioned in movies and TV, peaking in sell price with a single NFT from Beeple selling for $69 million US dollars. Nothing could stop NFTs, right? Wrong. In fact, according to the recent report from NFT evening, 96% of NFTs are dead. It’s more important than ever, that the general public understand the obstacles and opportunities NFTs present in the modern era.
Below is a breakdown of 5 tips to help creators and collectors from a crypto marketing agency in the NFT industry in 2024 and beyond.
1. Assess the crypto market conditions
A fundamental factor that aids the euphoria of a thriving NFT market is how the overall crypto market is performing. Market activity picks up if the market is in a bull run, due to a bull run usually providing collectors with extra funds to buy more NFTs. Sites like Cryptoslam provide overviews of the hottest NFT companies and sales volumes over 24 hours, 7 days, 30 days, and all time. It’s a great website for gaining insight into the amount of NFTs being bought and sold over various blockchains that other NFT marketplaces may miss out on.
Another factor is the underlying blockchain/cryptocurrency, like Ethereum, which is crucial in NFT pricing and trading volume. Ethereum’s price determines transaction fees and the speed of a confirmed translation, which can influence buyer and seller decisions. Fluctuations in Ethereum’s value can directly impact the affordability and liquidity of NFTs, affecting overall market activity.
Whether market conditions are good or bad, creators and collectors should be on the lookout for NFT companies ready to scale up.
2. Look for NFT companies that are poised to scale up
Breaking out of the traditional Web3 mantra and scaling up like a regular business, NFT companies have been forced to mature with the growing demand of collectors who want something new. Some 10K Profile picture (PFP) collections like the Pudgy Penguins, technically 8,888 PFPs, have become an internet sensation by moving into the physical kids’ toy industry. The unique selling point is that collectors of the Pudgy Penguins can license their PFP design to be printed on physical merchandise and gain a revenue share of every one sold. Every physical Pudgy Penguin subtly onboards the masses by getting them to scan a QR code that mints an NFT and introduces them into the ecosystem.
Another excellent example of an expansive NFT company ready to take over the world is Doodles. They appointed mega-musician superstar Pharell Williams as their Chief Branding Officer. Doodles have a distinctive art style and colour palette with its instantly recognisable way the eye is outside of the face. Doodles is also home to Dullsville and the Doodleverse, a fun and entertaining animation series that spans from their in-house creative studio. Companies like these two show the ability to break out and become global brands outside of Web3. Many successful NFT companies also thrive because they’ve learnt from previous NFT industry mistakes.
3. Times change – learn from previous NFT mistakes
Another critical factor is understanding how different the NFT markets are from 2021 to 2024. Market oversaturation, less innovation, and bad actors forced many NFT companies to pivot or shut down completely. 10K generative PFP collections started out with less supply and more demand, but over time, the supply inflated considerably, and the hunger to collect new NFTs declined.
Heavy criticism was dealt to the original Pixelmon NFT release. After being one of the most hyped projects of 2022 with an impressive YouTube trailer, buyers who spent nearly 8,000 USD for 1 NFT were disappointed about the fake artwork and ‘Kevin’ became the meme of the Web3 NFT world for a long time.
This story is not all downhill, as LiquidX Studios acquired the NFT company. Now, they’ve completely revamped the roadmap and are finally creating video games using Pixelmon NFTs. Above all, the true use case of NFTs lies in what you can do with them.
4. What’s the actual utility?
Utility refers to the added practical value or benefits an NFT provides beyond its collectibility, such as access to exclusive events, services, or digital/physical goods. When looking for NFT companies to invest in or create your own, ensure they offer more than monetary gains.
These could include:
- Exclusive access to events and communities
- Redeemable physical items
- Voting and governance rights
- Gaming perks and in-game assets
- Loyalty rewards and discounts
- Training and courses
- Charitable contributions and donations
- Early access to product launches
- Access to exclusive services
There are many more utilities to consider, but the above list provides some common areas that good NFT companies can offer their NFT holders. If you’re after more utility for your NFT company, consider contacting a marketing agency.
5. Consult a crypto marketing agency
Being at the forefront of breaking news and the general NFT landscapes, crypto marketing agencies like Take3 can help you understand the zeitgeist of the current NFT industry. Catering to creators wanting to mint your first collection on the blockchain or an avid Web3 brand ready to take your NFTs to the next level. Full-service agencies like Take3 deal with Web3 clients daily and can clearly define a strategy and provide insights that you won’t usually find on the internet or at regular Web2 agencies.
Need help with developing NFTs and blockchain? Take3 provides blockchain insights and solutions to help you accelerate to a new level. Get in touch here.✌️
