After reaching its glory days in 2021-2022, the fate of the Non-Fungible Token (NFT) industry has now turned 180 degrees. NFT collection prices and transaction volumes have plummeted. Amid these bearish conditions, some NFT projects can still survive and show their potential. What are these NFT projects? What makes these projects thrive amidst the dire NFT industry? Find out in the following article.
Article Summary
- 📉 After reaching its glory days in 2021-2022, the NFT market is now facing a drastic downturn in asset value and trading volume.
- 🤯 There is a shocking fact that as much as 95% of NFT collectibles now hold no significant value. In other words, their owners are making huge losses.
- 🐧 However, some NFT projects, such as Pudgy Penguins and Milady, have survived the market downturn thanks to solid communities and innovative collaborations.
- 💡 Now, the NFT industry is focusing on improving the use cases of each collection to survive and have long-term investment value.
NFT World Development
We still remember how the advent of NFTs revolutionized the concept of owning collectible assets in 2021-2022. With the bull run, NFTs became the hottest and most promising sector. Everyone suddenly became NFT collectors and creators. Countless NFT collections were valued at hundreds of millions per item.
At the peak of NFT’s glory, OpenSea, the largest NFT trading platform, recorded a monthly trading volume of $5.04 billion in January 2022. In fact, between August 2021 and May 2022, OpenSea never recorded a monthly transaction below $2.2 billion.
However, when the crypto market entered a bearish period, the excitement of the NFT world also faded. Monthly trading volumes gradually declined. NFT prices plummeted. The popularity of NFTs reached its lowest point with the perception that “NFTs are nothing more than a scam.”
Surprisingly, 18% of these top collections had a floor price of 0 ETH, indicating a lack of demand for a portion of these top-tier NFTs. Furthermore, 41% of the top collections were priced between $5 and $100. In other words, nearly half of the top collections were also considered to have insignificant value as digital assets.
Notably, less than 1% of NFT collections were valued above $6,000. This suggests that NFTs can still hold significant value, provided they possess a unique and scarce quality compared to other collections.
List of Top NFT Projects That Still Worth a Fortune
The following is a list of some NFT projects that have managed to survive the bearish trend and even show their potential to last for a long time:
1. Pudgy Penguins
Pudgy Penguins is an NFT collection featuring adorable penguins with various unique accessories and outfits. It comprises 8,888 penguin avatars with unique attributes, making them collectible digital assets.
Pudgy Penguins was first launched in 2021. However, it faced several challenges, including a change in leadership and allegations of fraud. Since Luca Schnetzler became CEO in April 2022, the project has steadily improved thanks to Schnetzler’s commitment and strong community.
According to the NFT marketplace OpenSea, the lowest floor price for a Pudgy Penguins NFT is currently 9.35 ETH, which is equivalent to $24,637. The most recent high-value sale was Penguin #6873, which sold for 400 ETH.
Factors contributing to Pudgy Penguins’ value include its popularity and a dedicated, active community. They are committed to spreading positivity throughout the metaverse. Each holder of a Pudgy Penguins NFT is called a Huddler and receives exclusive privileges for owning at least one NFT.
The Pudgy Penguins community promotes mental health issues such as empathy, happiness, compassion, and love. The project has also collaborated with various well-known brands, increasing its value and popularity. One such collaboration involves selling physical toys in US Walmart stores. Recently, Pudgy Penguins announced the launch of its interactive digital world on the zkSync blockchain.
PFP was once the most popular NFT. Find out the explanation here.
2. Milady
The following popular NFT collection is Milady Maker, a generative profile picture known for its “neochibi” style, inspired by Tokyo’s early 2000s street fashion. The project was developed by Remilia Collective, previously known for the ‘Redacted Remilio Babies’ project.
The “neochibi” style sets this NFT collection apart from others. Uniqueness is determined by “drip scores” that measure the style and aesthetic appeal. These scores range from D to SS, adding a collectible and competitive element for owners.
The initial 10,000 Milady Maker NFTs were launched in March 2021 with a mint price of 0.05 ETH. According to OpenSea, the current floor price for a Milady NFT is 3.7 ETH, or approximately $9,716. The most recent high-value sale was Milady #7489, which sold for 30 ETH.
One of the factors driving up Milady’s price was Elon Musk’s tweet featuring a Milady meme in May 2023. This significantly boosted Milady’s value and earned it the title of “NFT Project of the Year” at the 2023 Binance annual awards.
Milady NFTs offer more than just digital avatars. Owners gain access to exclusive events, virtual reality platforms like Milady VRtube, global raves, and private Minecraft servers. Additionally, the project is linked to charitable efforts supporting Save the Children.
3. Mad Lads
Unlike the previous two NFT projects on the Ethereum network, Mad Lads is an NFT collection on the Solana blockchain. It’s a collection of xNFTs (executable NFTs), a new token standard in the Solana ecosystem. xNFTs offer a unique feature allowing users to integrate their applications into their digital wallets directly.
Essentially, xNFTs are like apps on a smartphone. Mad Lads owners can use their assets within an application without connecting to external platforms. This makes xNFTs simpler and more secure and are touted as the next generation of NFTs.
Mad Lads features 10,000 unique male and female characters, ranging from renowned scientists and pop culture icons to aliens and zombies. Coral created the project, a framework development company responsible for some of Solana’s most popular toolkits, including Anchor dan Backpack.
According to the NFT marketplace Magic Eden, the current floor price for a Mad Lads NFT is 54.96 SOL, which is equivalent to $7,804 at the current price. The most recent high-value sale was Mad Lads #5364, which sold for 876.48 SOL.
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4. Doodles
Doodles is an NFT PFP collection that has proven to be resilient, weathering bearish market conditions while continuing to show strong potential. Founded by NFT industry leaders Evan Keast and Jordan Castro, along with renowned artist Scott Martin, this project has garnered significant attention.
The collection features 10,000 unique NFTs, including 62 one-of-a-kind pieces hand-drawn by Martin. Doodles characters come in various forms, from mascots to aliens and cats, each with distinctive traits that contribute to their rarity.
Beyond its strong community, Doodles has cultivated a powerful brand identity through collaborations with major brands such as Adidas, Humanrace, Crocs, and G-Shock.
The project continually innovates, expanding its ecosystem with initiatives like Space Doodles, Doodles 2 & Stoodio, and Dooplicator. Doodles even has an incubator that empowers Doodle holders to create and connect with other communities.
Launched on October 17, 2021, with a minting price of 0.123 ETH, Doodles has seen substantial growth. According to OpenSea, the current floor price for a Doodle NFT is 1.78 ETH, equivalent to approximately $4,677. The most recent high-profile sale was Doodle #6914, which sold for 296 ETH.
5. DeGods
DeGods is an NFT PFP collection featuring deities depicted in modern attire, with art inspired by ancient gods. Initially launched on Solana in October 2021, the collection later migrated to the Ethereum network in April 2023 due to scalability issues on Solana.
Each DeGod possesses 4-7 traits from a pool of 8 attributes, determining its rarity. Beyond being digital collectibles, DeGods holders can earn DUST tokens by staking their NFTs. Additionally, they can evolve their DeGods into a second version known as a DeadGod.
The DeGods community is a standout feature of this project. Holders gain access to exclusive communities that foster creativity and collaboration. The project’s resilience in the face of rug pull allegations and Solana’s network challenges have solidified its position in the NFT market
According to OpenSea, the current floor price for a DeGods NFT is 1.9 ETH, equivalent to approximately $4,979. The most recent high-profile sale was DeGods #3251, which sold for 110 ETH.”
The Future of NFT
NFTs can no longer be merely digital art collectibles. We can see how BAYC, primarily used as a profile picture, has lost relevance and value. NFTs must offer additional utility beyond aesthetics.
During the bear market, blockchain technology innovations have showcased the potential for NFTs with real-world use cases. For instance, the rise of GameFi involves NFT in-game assets. Other use cases include fractional ownership, real estate, and digital identity.
This added value suggests that NFTs with practical applications have more sustainable investment potential. Moreover, according to Statista, the NFT market is projected to grow by 9.10% in 2028, driven by increased adoption and new use cases.
Anthony Georgiades, a general partner at Innovating Capital, believes the NFT market is going through a boom-bust hype cycle. He points to PFP-focused NFT collections that experienced significant price increases, followed by steep declines, and may never recover. However, he notes that some high-quality NFT collections have persevered and are likely to continue for years.
“Ultimately, people do enjoy digital art. So, a strong artistic aspect of an NFT will be the most crucial factor in preserving its value,” he said, as quoted by Yahoo Finance.
Another critical factor is a strong community. As with traditional art, a thriving community can help maintain quality, promote the work, and drive demand. The NFT above projects demonstrate how a robust community can support the value and potential of a collection.
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Conclusion
The NFT industry peaked in popularity during 2021-2022. Its trading volumes reach billions of dollars. Unfortunately, when the crypto market entered a bearish phase, the popularity and value of NFTs declined significantly. By the end of 2023, total NFT trading volume dropped drastically to $11.8 billion, compared to $26.3 billion the previous year. The report reveals that most NFTs no longer hold significant market value, with 95% of analyzed collections valued at 0 ETH.
Despite the current bleak state of the NFT market, some projects have managed to showcase their potential. Projects like Pudgy Penguins and Milady have attracted attention and maintained value thanks to strong communities and collaborations. Following the downturn, NFTs are now focusing on strengthening their use cases. The latest generation of NFTs is centered around developing GameFi, fractional ownership, and digital identity. This indicates that the future of NFTs remains promising with continued innovation and adoption
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References
- dappgambl, Dead NFTs: The Evolving Landscape of the NFT Market, accessed on 15 August 2024.
- Yaël Bizouati-Kennedy, Are NFTs Still Viable Investments In 2024? Yahoo Finance, accessed on 15 August 2024..
- Laticia Melo, DeGods: Everything You Need to Know About the NFT Collection, DappRadar, accessed on 15 August 2024.
- Langston Thomas, A Guide to Mad Lads: Everything to Know About the Solana Project, NFTNow, accessed on 15 August 2024..
- Joel Agbo, Everything You Need to Know About Pudgy Penguins: From NFTs to Toys, CoinGecko, accessed on 15 August 2024..
- Leah, Milady Maker NFTs Spike—Other OG Ethereum Assets Fall, NFTPlaza, accessed on 15 August 2024.