NFT investors must-have collection of these 7 indicators should be fully utilized

Spencer Noon, co-founder of Variant Fund, recently tweeted 7 indicators that NFT investors can use to evaluate projects. Noon explained the purpose of each indicator, the reason for choosing this indicator, and the tool website for obtaining these indicators.

Estimated market value

Calculation method: 7-day average price * total supply

Reasons for choosing this indicator: Compared with homogenized tokens, the liquidity of the NFT market is generally lower, and the transfer speed is much slower. This indicator is useful because it removes outdated input data (for example: early cryptopunk sales)

Recommended tools: @raritytools

NFT investors must-have collection of these 7 indicators should be fully utilized

Diamond hand balance

Note: Diamond Fingers are not afraid of market fluctuations and hold positions until the target person

Balance calculation method: The total amount of NFT belonging to any NFT address that has never sold a given collection

Purpose: A useful indicator for identifying projects with real long-term believers

Recommended tool: @nansen_ai

NFT investors must-have collection of these 7 indicators should be fully utilized

Sole holder

Purpose: To help understand the size of the project community

Recommended tool: Use the @drakedanner dashboard on Dune Analytics

https://dune.xyz/danner_eth/NFT-Comparison

NFT investors must-have collection of these 7 indicators should be fully utilized

Trading volume

Purpose: To understand the basic but important indicators of the overall market demand of the project

Important note: The indicator should not be used alone, because it can be used by whales. Use with unique address (above)

Recommended tool: @opensea

NFT investors must-have collection of these 7 indicators should be fully utilized

Rarity score

Reason: Under the same conditions, if you have no preference for aesthetics, an NFT with a higher rarity score is usually more valuable than an NFT with a lower rarity score.

Recommended tools: @raritytools

NFT investors must-have collection of these 7 indicators should be fully utilized

Floor price

Reason: A useful indicator for monitoring the cost of users joining the NFT community

Note: Anyone can also use similar applications (such as @fractional_art) to join the high-level community

Recommended tool: Google Sheets by @Zeneca_33‌

NFT investors must-have collection of these 7 indicators should be fully utilized

Qualification distribution

Purpose: To show the distribution of NFT ownership over time

Reason: Knowing which NFT projects have long-term community attention is a useful indicator.

Recommended tool: @nansen_ai

NFT investors must-have collection of these 7 indicators should be fully utilized

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-investors-must-have-collection-of-these-7-indicators-should-be-fully-utilized/
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