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What is a Blue Chip NFT?

What is a Blue Chip NFT?

In short:

  • Blue chip NFTs are projects that are expected to be stable in terms of value and profitable in the long term.
  • Blue-chip NFTs share several common characteristics: a relatively high floor price, brand strength, celebrity endorsements, project team commitment, and real utility.
  • Blue-chip NFTs include Bored Ape Yacht Club, Mutant Ape Yacht Club, Crypto Punks, and ENS: Ethereum Naming Service.

Before we can figure out what blue chip NFTs are, we need to understand what NFTs are and how they are valued.

non-fungible tokens, NFTs, are cryptographically unique tokens associated with digital and physical content that provide proof of ownership, identity, or group membership. In gaming, NFTs allow players to truly own the unique digital assets they purchase, such as pet monsters or spaceships, and they are free to trade or sell these NFTs as they see fit.

In October 2022, global NFT market sales exceeded $333 million, according to the NFT tracking website. CryptoSlam. Another popular site for tracking NFT data, DappRadar tracks blue chip NFTs and the broader economy of NFTs and decentralized applications.

What is a Blue Chip NFT?

In traditional finance, a blue chip is a nationally recognized, well-established, and financially sound company. According to Investopedia, blue-chip companies are known to experience recessions and operate at a profit in adverse economic conditions.

Blue chip stocks are considered relatively safe investments with a proven track record of success and steady growth. Although blue chips are securely stable, they are unlikely to deliver the same high returns as potentially riskier investments. This is also true of the “blue chip” NFTs common to the average NFT.

Cryptopunks

Cryptopunks, considered one of the earliest collections of NFTs, was created by development studio Larva Labs. CryptoPunks are 10,000 images tokenized as NFTs on the Ethereum blockchain. Owning a CryptoPunks NFT means you are the sole owner of a one of a kind pixelated avatar. CryptoPunks are OG Ethereum NFTs created in 2017 – long before anyone other than crypto enthusiasts knew or cared about scarce digital collectibles. Believe it or not, CryptoPunks was released for free back in 2017. The Ethereum ERC-721 non-fungible token standard didn’t even exist back then, and a two-person team at Larva Labs released them as an experiment. Ethereum wallet owners bought back 9,000 public CryptoPunk, while Larva Labs kept the rest.

The volume of NFTs gradually increased over the next three years, but in late 2020 and especially early 2021, the demand for these provably scarce digital collectibles skyrocketed. CryptoPunk’s secondary market value has skyrocketed, leading to multimillion-dollar NFT sales, Christie’s and Sotheby’s auctions, and multiple CryptoPunks being used as Twitter profile pictures.

But while CryptoPunks was one of the first NFT collections, there is nothing bigger than the Bored Ape Yacht Club.

Did you know?

The most expensive CryptoPunk sold to date was sold for $11.8 million in ETH in June 2021 at Sotheby’s auction to Shalom Mekenzie, the largest shareholder of DraftKings.

Bored Ape Yacht Club

Developed by Yuga Labs, Bored Ape Yacht Club is a set of 10,000 profile images minted as NFTs on the Ethereum blockchain. Bored Ape collectors have an illustration of an indifferent ape with randomly generated traits and accessories. No two images are the same.

Buying the Bored Ape NFT Yacht Club gives you access to a kind of titular “club” and membership comes with benefits. By January 2022, Bored Ape NFT had over $750 million in trading volume, including subsequent option sets, according to CryptoSlam data. Bored Apes has become the favorite Twitter NFT avatar for athletes, musicians and more.

Did you know?

At press time, the record sale of a single Bored Ape NFT in September 2021 was 740 ETH, or just over $2.9 million. It was bought by the developer of the upcoming Ethereum game, The Sandbox.

Doodles

Doodles, launched in October 2021, are a series of NFTs featuring Burnt Toast. Doodles come in a wide variety of colors, features, and sizes, with a collection of 10,000 pieces. Each doodle allows its owner to vote on impressions and activations paid for by the Doodle Community Treasury.

In September, Doodles announced that musician and producer Pharrell Williams had joined. Doodles as chief brand officer, with plans to become an executive producer of the music album inspired by the project. In the same month, Doodles NFT sales increased by 1200% and were valued at $704 million at the time.

adzuki

Launched in January adzuki has become one of the hottest NFT projects released in 2022 in terms of total trading volume and has just reached a new milestone. The Ethereum-based profile picture project debuted in January, and by March 2022, its first secondary sale exceeded $1 million.

Azuki #9605 sold for 420.69 ETH or $1.42 million at the time, more than double the previous record sale of the Azuki #4666 project for 204 ETH on February 13, which was around $586,000 at the time.

An anime-inspired Ethereum collection has become one of the best NFT projects in 2022.

twin flames

Launched in February 2021, Twin Flames was conceived as a tribute to artist Justin Aversano’s twin brother who passed away in the womb. Twin Flames is a collection of 100 photographs, each featuring a different group of twins. Photographs taken around the world between 2017 and 2018 show a wide range of items in the location and clothing of their choice, united by the common denominator of being twins.

The twin flames, minted as an Ethereum-based NFT in February, are in high demand among collectors. Snoop Dogg and Gary Vaynerchuk own NFT Twin Flames, and by October 2021, the portrait collection had a trading volume of almost $13 million, according to OpenSea. That year, one NFT from the collection was sold for 506 ETH, or almost $1.9 million.

CryptoCats

Created by Dapper Labs, CryptoCats are non-fungible tokens originally built on the Ethereum blockchain using the ERC721 token standard. Prior to ERC721, blockchain tokens were fungible; any Bitcoin or Ethereum token is identical to any other. ERC721 allows you to create unique non-fungible tokens.

Each CryptoKitty is unique and its digital genome is stored in a smart contract. The immutable genotype stored in the smart contract determines its appearance or phenotype. Any two CryptoKitties can be bred using a genetic algorithm and the offspring will be produced with its unique traits (or “attributes”).

The popularity of CryptoKitties quickly became a problem for the Ethereum network, which could only process a certain number of transactions at a time, leading to queuing. Breeding CryptoKitties became so popular that other companies running on the platform could not quickly verify their transactions.

In May 2020, CryptoKitties announced they were moving to a dedicated Flow blockchain.

Did you know?

The most expensive CryptoKitty, Genesis, was once valued at $114,481.59. That’s more than the most expensive “real” cat in history, which cost just $41,435.

Like stocks, blue-chip NFTs come and go. The once unstoppable yacht club Bored Ape Yacht has lost its value due to the start of the cryptocurrency bear market earlier this year. In January, a popular singer Justin Bieber bought a monkey for $1.3 million; as of November 2022, this JPEG is worth $69,000.

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Written by khirou

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