Blue Chip Exploration
An excellent way to identify potential collections or NFTs to purchase would be by exploring Blue Chip Collections or following Blue Chip Holders.
What are Blue Chip Collections?
Blue chip collections are usually:
- More Mature: Project has been launched for quite some time
- Stable: Floor price remains consistently high
- Widely Recognized: Known names such as Bored Ape Yacht Club (BAYC), CryptoPunks, Azuki
What do Blue Chip Collections Mean?
Blue chip collections are known as the leaders of the NFT market and are generally used as an indicator to reflect the overall NFT market. These are collections that the market keeps its eye on, particularly on their floor price, liquidity, market cap, etc. The transactions within such collections are often high key since many holders are celebrities. Sales from collections of either a new high price or a new low price are frequently widely discussed on Twitter.
How are Blue Chip Collections Selected?
'Market Cap' is the main criterion to determine whether collections are considered blue chip collections. Currently, the criterion does not consider Land Projects (e.g., Otherdeed for Otherside) and Art Blocks.
As of Q1 2023, the blue chip collections selected are:
- Bored Ape Yacht Club
- Mutant Ape Yacht Club
- CLONE X - X TAKASHI MURAKAMI
- Bored Ape Kennel Club
- Cool Cats NFT
- World of Women
- PROOF Collective
- Space Doodles
- Pudgy Penguins
- The Potatoz
- The Captainz
- Otherside Koda
- Wrapped Cryptopunks
Blue chip collections are adjusted quarterly based on user feedback, market status, and collection performance over time. The changelog for the blue chip collection list is as below:
- May 19, 2022: added Otherdeed for Otherside, Moonbirds
- Aug 4, 2022: deleted Otherdeed for Otherside, Sandbox, Decentraland; added Space Doodles
- Dec 22, 2022: added Pudgy Penguins
- Apr 28, 2023: added The Potatoz, The Captainz, Degods, Otherside Koda, Wrapped Cryptopunks
Blue Chip Index
Blue chip collections are widely tracked by the market given its reliability. As such, NFTGo provides user with blue chip index, a handy tool on the market overview to tracks the performance of blue chip collections in terms of their market cap. Should the blue chip index be low, it indicates that the market is in a fairly risk-off manner as even the top reliable collections are declining in performance.
What are the Benefits from Exploring Blue Chip Collections
Two potential methods to benefit from a blue chip collection are as below:
Purchase from the Collection
The first possible strategy would be to purchase an NFT within the blue chip collection. Given that the collection has shown traction over a prolonged period and maintained its floor price, buying into such collections will allow users to profit from the price appreciation.
Follow Blue Chip Holders
Another strategy would be to identify the holders of such collections, blue chip holders. The following section will describe more about blue chip holders and how users can derive trading strategy from analyzing blue chip holders.
Who are Blue Chip Holders
Simply put, a blue chip holder refers to a user whose address holds at least one blue chip NFT.
Super blue chip holder refers to addresses where the estimated value of blue chip collections exceeds 200 ETH.
Given that blue chip holders have such high portfolio value, it is evident that they are well-versed in the NFT market and have been able to identify profitable collections. Thus, by tracking the activity of these blue chip holders, users will be able to obtain real-time data on the collections that these holders are buying into. From there, a user can further check from the collection page whether other blue chip holders are also buying in. For a collection with a lot of blue chip holders, there will not be any random dumping which causes the floor price to drop.
The above does not constitute financial advice. Do perform your own due diligence before buying into a particular collection.
Updated about 1 month ago