Dear Future Whales,
In this note, we examine how various projects are adapting to the evolving market dynamics, highlighting successful strategies like those of Pudgy Penguins and discussing critical moments for projects like Futureverse. Additionally, it categorizes top-tier collectibles, notable Solana projects, and mid-tier contenders, providing insights into the current and future landscape of NFTs.
Key Takeaways
Adapting to Change: The NFT space is shifting, with projects needing to innovate to stay relevant, exemplified by Pudgy Penguins’ move into real-world assets.
Mid-Tier Challenges: Projects like Yuga Labs and Futureverse face declining asset values and shifting community sentiment, highlighting the need for continued innovation.
Emerging RWA Platforms: New opportunities for collectors are emerging through platforms like Watches.io, Collector's Crypt, and tokenized wine providers like Club dVIN and Cantinium.
The Current Landscape
Today, the NFT space is not just about decreased JPEG values and sinking sentiment; it's witnessing a major pivot. Numerous projects, once buoyed by venture capital at overly high valuations, are finding their financial runway shortening, forcing them to innovate or pivot to stay relevant. Some, like Pudgy Penguins, have successfully leaned into real-world assets (RWAs) through plushie collectibles—a strategy many, including myself, see as the future of NFTs.
Notable Shifts
Main takeaway: The NFT space is seeing significant changes, with projects switching blockchains, relocating studios, and facing critical delivery milestones, all highlighting the industry's dynamic and competitive nature.
DeGods has flip-flopped between chains, possibly lured by network incentives or current active users, while Doodles recently moved its studio to BASE, a win for the network just announced yesterday. Futureverse, a project I have high hopes for, is now at a critical juncture. They must deliver on their promises with "The Third Kingdom" and "OPEN” by Readyverse or risk fading into obscurity.
Two years ago, Blur’s marketplace dynamics and token farming were blamed by many for plummeting NFT prices as users engaged in high-risk trades to farm rewards. Today, Blur has launched Blast, its own Layer 2, becoming a playground for crypto enthusiasts, where the primary bragging rights revolve around jackpot earnings.
Community Voice and Market Sentiment
Last month, I penned an open letter expressing my concerns, not expecting much change. However, in this 101st edition of Blubber Notes, I share insights on a few projects that are likely to endure. I categorize them into tiers based on personal assessments and their application to profile pictures (PFP), gaming, and RWAs, focusing on EVM-compatible projects but also touching on others.
Top-Tier vs. Mid-Tier Projects
Top-tier NFT projects typically maintain strong market positions due to robust community support, strategic marketing, and established historical significance, often enjoying higher stability and value. Mid-tier projects, while still significant, face challenges like declining asset values and fluctuating community sentiment, requiring continuous innovation and successful project execution to improve their standing and achieve long-term relevance.
Top-Tier Collectibles
Pudgy Penguins: They've mastered marketing in Web3. Collaborating with their team on upcoming items and events has shown me their strategic prowess; they're playing chess in an arena where many are stuck on checkers. Bottom-line, if you are a serious collector, it’s hard to overlook the Pudgy IP.
CryptoPunks, Part of Yuga Labs: A timeless symbol of digital art history. Holding a Punk not only signifies ownership of a historic asset but also grants access to exclusive events, like those hosted by Beeple. Despite recent controversies with associated side projects, the CryptoPunks brand remains resilient, albeit not likely viewed as the top prize for much longer. Leadership is needed here, but I think they will pull through.
Spotlight on Solana
Boogles: To Solana, what Punks are to Ethereum—an undeniable success story.
Portals.to: Extensively covered in previous posts, they offer the best metaverse building tools accessible on modest hardware, ensuring global accessibility. Their ongoing loot box drop is worth exploring. They have a winner on their hands, and like everything else, this will just take time.
Mid-Tier Contenders
Bored Ape Yacht Club
Yuga Labs made a major impact in the NFT space with the launch of Bored Ape Yacht Club (BAYC) in April 2021. This collection of 10,000 unique NFTs quickly became highly sought after, gaining status within the crypto community. BAYC holders enjoy exclusive benefits, including access to members-only events and limited-edition merchandise. The ecosystem expanded with additional collections like Bored Ape Kennel Club and Mutant Ape Yacht Club, further enhancing its appeal.
In the gaming arena, Yuga Labs has been particularly ambitious with the development of Otherside, a large-scale MMORPG announced in March 2022. This game integrates NFTs into its virtual world, allowing players to explore, interact, and create within a richly detailed digital environment. To concentrate efforts on Otherside, Yuga Labs sold two of its NFT-based game projects, HV-MTL and Legends of the Mara, to Faraway, a Web3 gaming studio (Decrypt).
However, Yuga Labs has recently faced challenges, including a drop in the floor price of their assets and shifting community sentiment. These factors have pushed the brand to a mid-tier level, necessitating renewed efforts to maintain long-term value and engagement. Their future success will depend on their ability to innovate and fulfill the high expectations of their community, ensuring BAYC remains influential and sets new standards for NFT projects.
Futureverse Ecosystem
Many of you will not agree that Futureverse should even be considered mid-tier. I placed them here because of their overall technology stack and ecosystem as a whole. Futureverse has been on my radar from the start. Despite their ambitious beginnings and substantial funding, they have yet to deliver a compelling title. Over the last year, they have launched a mobile gaming app tied to AI football, a racing game, a boxing game, and a goblin brawler. I’m sure the community would agree with me that none of these seem to have legs yet and will fail to onboard the masses.
Their next big hope lies with "The Third Kingdom", a resource harvesting game, and The Readyverse’s “OPEN", think Oasis for Ready Player One. The hope here is that the previous work and technology created to develop the above mentioned titles lays the groundwork to finally have a hit. If these fail, it could spell disaster, not just losing community support but also investor confidence. Keep an eye on this pivotal moment for Futureverse. Either truly game-changing tech and partnership offering high upside, or just one more failed web3 venture. I still believe they have what it takes.
RWA Platforms to Watch
I won’t pick on the projects struggling, so no lower-tier collections mentioned. However, I do want to share the RWA platforms that I think you should be looking at for collecting some amazing assets:
Watches.io: They have an extremely large inventory to choose from, currently deployed on Base for lower transaction fees. Their moat is definitely their pricing data, providing relevant information on most models to help you secure the best possible value when shopping for your next timepiece.
Collector's Crypt: Most in the space think of Courtyard.io when it comes to Pokémon trading cards, but Collector's Crypt on Solana offers the best user experience and is led by a true OG in the collecting space. You can listen to an interview with him here.
Tokenized Wine: This space is getting a bit more crowded, but check out Club dVIN and Cantinium. Both offer tokenized wine and experiences.
If you are interested in collecting but can’t afford the to purchase higher value asset, then take a look into fractional ownership. Check out SegMint.io as the only fractionalization marketplace where you retain ownership in the underlying NFT.
Conclusion
The NFT space is evolving rapidly, with projects needing to adapt or risk obsolescence. As the landscape shifts, those that innovate and offer tangible value will thrive. From top-tier collectibles to promising RWA platforms, the potential for growth and success remains vast. Stay informed, stay engaged, and keep an eye on the developments within this dynamic ecosystem. The future of NFTs is still being written, and it's an exciting journey to witness.
Authored by Matt Bartlett, CAIA. Follow Matt on x.com @MattBartlettVE
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