For the vast majority of people, blue chip means something that is consistently excellent. Blue Chip is a term that NFT has inherited from stock investing. Blue chip stocks are often considered sound financial stocks and reliable investments (for example, McDonald’s).
Tier 1 NFTs enjoy the general consensus that they will retain their value well into the future. These NFTs are generally less volatile and are often set up as premium investments; These NFTs are likely to maintain a stable price floor, even during a bear market.
Top-tier NFTs such as CryptoPunks (an early NFT collection, created in June 2017 by Larva Labs) and Bored Ape Yacht Club (a well-established line of NFTs that built a successful brand and proved the founders: Yuga Labs ). – are truthful).
These two well-known NFT lines in the NFT space have established the general consensus that they will remain on top. Both collections also have a minimum price of over 70 ETH, or about $200,000.
Since these investments are widely known and many people aspire to buy them, they become less risky. Historically, these investments have been more stable than the global NFT market, which is quite volatile.
As previously mentioned on NFTexplained.info, these NFT lines held their price during bear markets (times when a market is experiencing a decline).
This shows the sales of the BAYC collection; the chart shows that BAYC has been able to maintain a healthy uptrend without extreme price declines for an extended period.
How to identify a Blue Chip NFT project?
Blue Chip NFT projects can be identified by examining reputation; If the project is known for its reliability and can survive a bear market, it can be considered a blue chip. Only projects where the global NFT market agrees that the collection or artist is of high quality can be considered blue chips.
Only by first understanding the global NFT market can a top-tier NFT project be identified. Projects that are new and increasing in value probably cannot be considered tier one as they need to develop a backbone that ensures they are a more secure asset.
However, Blue Chip is a more subjective term: the vast majority of people agree that Blue Chip should be able to hold value even in tough times or a bear market.
Since top-tier NFT projects need a global market consensus, these projects are often recognized by people who may not be well-versed in the NFT market.
For example, we’ve seen celebrities like Odell Beckham Jr., Jay-Z, Steve Aoki, and Snoop Dogg show off their CryptoPunks. These are people who may not be well versed in the NFT space, but understand the general consensus that they own a valuable digital asset.
The same can be said for BAYC headlines: Steph Curry, Jimmy Fallon, Justin Beiber, and Serena Williams own this NFT line. As NFTexplained.info mentioned earlier, these people may not be pioneers in the NFT space, but they understand that these digital assets will retain their value in the long run.
Such a general consensus from the general population, including celebrities who are not on the verge of adoption in the space, results in an NFT project being elevated to blue chip status.
Some top-tier NFTs achieve instant notoriety because they come from world-renowned artists or entertainers. An example of a blue-chip artist would be Beeple, as it is often the first thing that comes to mind when people think of NFT artists due to the success of Everyday: the First 5000 Days, which sold for $69 million. He is a well-known artist and currently has more than 2.5 million followers on Instagram.
What makes an NFT a Blue Chip?
In a general statement, there are numerous aspects that can make an NFT look like a blue chip. Some of these aspects include historicity, broad recognition by a large consensus, the artwork itself, and the power of brand recognition.
The archeology or historical aspects behind some NFTs are what make them top-notch tokens. Since CryptoPunks was considered by many to be one of the first, it received a high reputation.
This is also true for the NFT line known as Ether Rocks, which are simply JPGs of rocks. However, since they were released in early 2017, shortly after CryptoPunks, they are very valuable. Right now they have a minimum price of 300 ETH or about $800,000.
If you are interested in learning about early NFTs, NFTExplained.info has linked this article here.
Next, the artwork is another aspect that can make an NFT look like a blue chip. The team mentioned Beeple earlier because he is often considered the poster child.
Another artist who is much less well known but still highly regarded in the NFT space is the artist FEWOCiOUS. His work has appeared at major auction houses such as Sotheby’s. Some people consider him to be a top performer in the NFT space.
If you are interested in learning more about FEWOCiOUS and its powerful history, this article is linked here.
The last point made by the NFTexplained.info team is the establishment of a mark that can make an NFT look like a blue chip. When considering this, Bored Ape Yacht Club is the NFT project that comes to mind for many. The NFT line has partnered with Adidas, demonstrating the brand recognition that BAYC enjoys.
At the end of the day, the blue chip is a subjective statement and it is not possible to determine exactly which artists and lines of NFTs are blue chips due to the speed with which the NFT space moves.
A final note of caution: Established blue chips are not a permanent state. In the stock market, Kodak (NYSE: KODK) was once a blue stock and Olympic sponsor famous for its catchphrase “Kodak Moment.” Just because a project is highly appreciated right now doesn’t always mean it will be done forever.
The last section of our article is about how to buy a top-notch NFT.
How to buy a blue NFT chip
If you want to buy a blue NFT chip, you can do so through a simple process. NFTexplained.info has broken down the steps in an easy-to-understand way. NFT Blue Chips can only be purchased through the secondary market like OpenSea.
Buying a blue NFT chip involves three simple steps; First, users must establish a digital wallet that interacts with the blockchain. Second, users need ETH in their wallets to fund the transaction. Third, buyers need to purchase the item and pay the transaction fee.
The first step in the process is to establish a digital wallet that can interface with the Ethereum blockchain. The most used digital wallet is MetaMask for its simple user interface. This process is quite simple, and the NFTexplained.info team has already published an article explaining exactly what the MetaMask wallet is, how it works, and a step-by-step guide for users. That article can be found here.
To purchase a blue NFT chip, Ethereum is required to complete the transaction. At MetaMask, users have the option to purchase ETH directly with a debit card or exchange a variety of cryptocurrencies for ETH. It is important to note that a “gas fee” must be paid or this transaction will not be complete: a miner must verify the transaction and be rewarded for his work.
If you want to know how much energy an NFT consumes; NFTexplained.info has created the perfect article for you. We’ll break down the consensus algorithms for proof-of-work and proof-of-stake and explain how much energy an NFT built into the Ethereum blockchain uses.
Once the MataMask wallet is connected and there is enough ETH in the wallet to buy and pay the NFT gas fee, users have the option to buy and bid.
If you want to learn about the largest NFT market, the NFTexplained.info team has created a comprehensive tutorial on OpenSea and we have broken down the market in an easy-to-understand way.
The procedure for purchasing an NFT is done through the use of smart contracts; this is computer programming and this is what makes the NFT process possible. Smart contracts allow the wallet to interact with the blockchain. Fortunately, the NFTexplained.info team has created a smart contract article to help you understand exactly how it works and provide you with some examples.