Smart money refers to wallets that are very active and profitable, often with high holding value. They are also often known as whales and are tracked by the market given their influential capabilities. By following smart money, users can often discover alpha and identify good collections before the market catches on.
Here are a few methods users can use to track smart money.
Some users may already have a specific address or user they would like to track, for example dingaling.eth who had the highest bid of 390 ETH (approx $413,000) for a Golden Skateboard Azuki, a prominent collector that owns 102 Azuki NFTs. Or social media influencer zeneca.eth that has been sharing unique insights on the NFT market.
In such cases, users can immediately enter the wallet address, or even more conveniently, the twitter handle of such individuals into the search bar at the top right of each page. Their profiles will appear and users will be able to look at all of the NFTs within their portfolio. To easily keep track of these accounts, users can get them into their watchlist.
To be able to dive deeper to identify opportunities and alpha, there are 2 metrics that users can keep a lookout for on the smart money's account.
First, users can get a broad overview of the general activity of the account. Is the account minting a lot of different collections? Is the account buying from a certain collection or selling from a certain collection? Once users have a gist of what this account has been doing, they can move on to look into the specific activities, to identify where the opportunity lies.
These portion shows the specific details related to the smart money's activities. The following information is available:
- Transaction Date
- Related Wallet Address
- Gas Fee
If users identified that the smart money has been showing high minting activity, they can check the activities section and filter for minting activities. This will grant users visibility into the collections that are being minted. Should users be interested in researching more, they can conduct the research within NFTGo.
For users that do not have an existing smart money address that they would like to follow, they can explore the list of potential smart money to follow on the Leaderboard. There are 2 categories that the users can look at.
With this feature, users are able to rank the whale wallets according to the following metrics:
- Portfolio Value
- Profit & Loss
- Unrealized Profit
- Realized Profit
- Total Revenue
Users will then be able to identify wallets with the highest portfolio value or highest profit & loss. These are wallets that have proven to do well in the NFT market, given their traction, it would be good for users to follow them to identify investing opportunities.
Another metric that users can look at would be the 'Top Traders'. Despite these accounts not having high portfolio value, these accounts have proven to be profitable, ranking at the top of accounts with the highest profits.
The above 2 methods were focused on discovering wallets first. Alternatively, users can also track whale actions through the 'Whales Signals' feature to instantly discover trading opportunities. This feature displays the collections that have been bought or minted by the largest number of whale accounts. Given that whales play an influential role in driving market sentiments, following the activities of whales could give users a better view of the next narrative and stand to obtain profitable trades.
Updated about 1 year ago