2022 NFT Market Review & Preview Who Can Break the Siege

01

A year of NFT market review: almost down to the freezing point

According to NFTGO data, the NFT data analysis platform, in the past year, the total market capitalization of NFTs peaked twice on February 22 and March 30, 2022, reaching 35.3B USD and 35.5B USD respectively, and then fell into a downward adjustment period. The total market cap of NFTs is currently flat around 22B USD.

At the same time, NFT trading volume experienced three peaks, and on October 25, 2021, NFT trading volume reached the first small peak, 731M USD; Second small peak on January 13, 2022, 1038M USD; On May 1, 2022, it peaked at 1308M USD, and then fell into a further decline. At present, the daily trading volume of NFTs is basically hovering around 60M USD.

2022 NFT market review and outlook, who can break the siege?

The size of the market has shrunk by 38%, and the trading volume has plummeted by 95%, which is the current situation of the NFT market, which has been carried to the extreme. But it is often at this time that the level of NFT projects can be best tested.

02

Popular NFT parsing

There is no doubt that in terms of volume and trading volume, it is still the world of PFP (profile picture) NFT, with a total market capitalization of up to 13B USD and a trading volume of up to 18B USD, but from the perspective of liquidity, the best liquidity is Utility NFT.

2022 NFT market review and outlook, who can break the siege?

Next, we will analyze several popular PFP, Utility, or hybrid NFTs.

2022 NFT market review and outlook, who can break the siege?

BAYC

The original BAYC (Bored Ape Yacht Club) is a typical PFP NFT, but BAYC has developed extremely rapidly, and its influence has expanded dramatically, with celebrities such as Curry, O’Neill, Neymar, Justin Bieber, Jay Chou and other celebrities holding (and holding) boring ape NFT, and some also use it as the avatar of social accounts. Just one year after BAYC’s birth, it successfully acquired CryptoPunks, the oldest NFT project, becoming the hottest NFT project. Interestingly, the founders of BAYC developed the project because they saw the success of cryptopunk.

But BAYC is not satisfied with just doing a PFP NFT, but is constantly enriching and expanding its own ecology. When the first batch of 10,000 boring ape NFTs sold out, the team launched 10,000 boring ape pet NFTs, Bored Ape Kennel Club (BAKC), which were distributed for free to BAYC holders, and later launched the Mutant Ape Yacht Club (MAYC), developed the ecological token ApeCoin (APE), and also launched a virtual land created for the Metaverse. Otherside。 BAYC is gradually enriching its own “ape universe” ecology.

At the same time, BAYC has also created its own commercial licensing method, the commercial use rights and sales rights of the IP are transferred to the holders, and the holders can redesign and recreate these boring ape NFTs, use or resell them according to their own needs, but each transfer will be divided into the boring ape team Yuga Labs according to the 2.5% of the selling price, which we call royalties. The Boring Ape team wants to get royalty income, and the Boring Ape NFT holder wants to continue to appreciate in value, and the two factors together drive the continuous circulation and appreciation of BAYC.

2022 NFT market review and outlook, who can break the siege?

Azuki

Azuki is a Japanese-manga-style PFP-type NFT. Its popularity is related to three new ways of playing: one is batch mint (paying for one Gas can get multiple NFTs), which can reduce the cost of user casting; One is a new whitelist screening mechanism that, combined with social media interactions or other criteria, allows for the selection of long-term community members rather than wool parties whenever possible; One is the new way of selling, followed by Dutch-style auctions, whitelisted mint, and public sales, providing real members of the community with suitable access to NFT costs. According to the official introduction, Azuki will also build its own IP ecology like BAYC, and will gradually increase the Utility attribute in the future.

But success still needs to be watched, and its anonymous founder has experienced three projects before Azuki and has been ridiculed by some community users.

2022 NFT market review and outlook, who can break the siege?

DigiDaigaku

DigiDaigaku is a popular PFP-type NFT. Daigaku means Japanese university, and DigiDaigaku literally translates to digital university or digital university. In early August 2022, it was released as a Freemint, and buyers only paid the gas fee, and within a day, DigiDaigaku’s NFT alone grew by a thousand times, becoming a shining new star in a long bear market. Its NFT image is a well-drawn two-dimensional girl, and its team members also have experience in the development of many well-known games, so DigiDaigaku also has a strong gaming gene. Public information shows that the team wants to make it a global online game.

Of course, DigiDaigaku is still in development, and the follow-up detailed roadmap is still to be disclosed. At the same time, all of them are sold in the form of Freemint, and it is doubtful how sustainable development will be guaranteed in the future. In fact, many Freemint-like NFTs eventually become a pile of e-waste, and Binance Zhao Changpeng once tweeted that if everything in the world is free, why do we need to work so hard? ”

03

Where is the NFT going?

As mentioned above, since May this year, the NFT market has fallen off a cliff, opening a long bear market. In the second half of May, there was a wave of rotten, ugly, and grotesque NFT projects on the market, such as Goblintown.wtf, ill poop it nft, etc., such NFTs are often three no products, that is, no roadmap, no Discord, no practicality, and even some CC0 (Creative Commons 0) projects, that is, the author gives up all the copyright of the creation, no one has ownership, This means that these works can be freely copied, modified, distributed and exhibited, and can even be used directly for commercial purposes, in addition to Goblintown.wtf, ill poop it nft, but also Mfers, Cryptoadz, Nouns, etc. all fall into this category.

This kind of obvious pendulum project is probably in line with the pendulum mood of encryption users at that time, so it was once very hot, in fact, this kind of non-mainstream PFP-type NFT is completely ugly and useless in nature, and once the heat recedes, it is difficult to escape the fate of silence.

In the long run, a high-quality blue-chip NFT needs to have at least the following characteristics:

1. The picture quality that conforms to the mainstream aesthetic. Whether it’s 2D, 3D, quadratic or other styles. Those projects with strange and ugly paintings may only be a brief carnival.

2. Team support with rich and diverse experience. This is not only the experience of comic creation, but also a stronger comprehensive strength, such as blockchain technology, animation, film and television experience, and the ability to continue to operate for a long time.

3. There is a strong IP, a good story and an ecological plan. The success of BAYC illustrates the importance of ecology. But its success cannot be replicated, and in the longer term, although it has been IP and ecological, its own story is relatively thin, which may be its most fatal weakness. Although anime works with more complete, lasting and huge influence, such as “One Piece”, “Attack on Titan”, “Astro Boy” and Ghibli series works (such as “Totoro”, “Sky City”, “Valley of the Wind”), etc. have entered the NFT, they still stay at the level of free gifts and collections with physical works, and have not formed a strong ecology.

04

A catfish that hits the NFT track

It is worth noting that an NFT project with great growth potential has quietly entered the NFT track, which is the Universe Platform, that is, UVP.

UVP is a diversified entertainment content platform based on Tulpa Mancer, a well-known animation IP in Asia. Its NFT will be based on IP animation characters, which belongs to the hybrid NFT of PFP+Utility.

First of all, “Tulpa Mancer” is a well-known animation IP that has swept Asia, and its character CG production and action models are very exquisite, at least from the screen point of view, it is very attractive, making people look like they have the impulse to collect;

Secondly, the team of UVP has many years of experience in animation, film and television, game development, and has deep experience in continuous development and long-term operation.

On top of that, UVP’s Tulpa Mancer has a strong storyline, so the anime has tens of millions of fans in Asia and has been played hundreds of millions of times. This means that UVP comes with its own traffic, and it is web2 traffic, which is fundamentally different from BAYC and the like, in other words, UVP’s NFT will have a strong potential liquidity.

Coupled with the first two points, can support the future UVP to build it into a strong IP ecology, it is understood that UVP will create an EntertainFi Metaverse ecology, not limited to NFT, games and animation, compared to other NFT projects that claim how to develop in the future, UVP’s credibility and success rate are obviously higher.

In general, the current NFT project either belongs to the native of the encryption circle, lacks strong story line support, and is difficult to compete with traditional film and television, animation IP, or the traditional film and television and animation circles have not yet got the true meaning of NFT, but they have done some fearful temptations in NFT, and there has been no project like UVP.

The UVP team has already obtained the adaptation rights and NFT distribution rights of “Tulpa Mancer”, and is about to make a big splash in the NFT field. The emergence of UVP has opened a new door for the NFT market, but also injected new hope into the long bear market, and we will continue to pay attention to the official dynamics of UVP in the future, looking forward to the official sale of its NFT and the construction of the ecology.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/2022-nft-market-review-preview-who-can-break-the-siege/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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