3 NFT Projects to Watch During Crypto Winter – CryptoMode
As cryptocurrency prices fall after the recent bull run, and some expect another crypto winter, it may be an opportune time for those interested in the digital asset space to take a closer look at NFTs, especially as most floor prices have arrived down from the peaks. .
If you’ve been lurking around the digital asset space, you would most likely have heard of CryptoPunks – one of the pioneering NFT projects that have been in the space since the early days and had arguably played a major role in starting the crypto art movement.
These 10,000 unique collectible pixel art characters – stored on the Ethereum blockchain – were algorithmically generated by LarvaLabs, which was previously involved in the development of the Sidekick phones (the predecessor to modern smartphones).
Each CryptoPunk has its distinct characteristics and attributes, and no two are the same.
At the peak of the bull run in November, the floor price for CryptoPunks was around the 80 ETH mark (worth about USD380,000 at the time).
The increase in value had far surpassed the humble beginnings in June 2017 – these NFTs were given away literally for free, and the buyer only had to cover the transaction fees to acquire one of the 10,000 CryptoPunks.
In August 2021, Visa jumped on the bandwagon with its 49.5 ETH (USD150,000) purchase of CryptoPunk #7610.
Since then, the project has seen multi-million dollar assets, including CryptoPunk #5822 – an alien wearing a blue bandana – which sold for 8,000 ETH ($23.7 million) on February 12, 2022.
In March 2022, Yuga Labs – the creator of Bored Ape Yacht Club – announced its acquisition of the intellectual property of CryptoPunks from Larva Labs, and subsequently decided to grant full commercial rights to the holders.
A month later, Yuga Labs brought on Noah Davis, a key part of the NFT team at auction house Christie’s, to be the brand manager for CryptoPunks.
Yuga Labs has indicated that it is committed to “a slow and thoughtful approach” with the Punks brand, considering community engagement and support.
As the broader crypto market took a turn, the price of NFTs was also pulled down.
While CryptoPunks’ floor price has risen in ETH terms, the 70% decline in the price of ETH between November 2021 and mid-July 2022 has pulled the floor price of the NFT project to around $113,000 – about a third of its previous $380. 000 top.
Given the decline in its fiat-denominated price and the potential plans for the project under the new management, CryptoPunks could be interesting to follow.
DeGods, a collection of 10,000 “virtual gods”, is one of the top projects on the Solana blockchain. Holders of NFTs are allowed in the DeDAO channels on DeGod’s exclusive discord community.
DeDAO is the project’s own decentralized autonomous organization (DAO), funded by a portion of the marketplace fees for trades of DeGod’s NFTs on the secondary market.
It seeks to use its funds to acquire assets for community auctions and raffles, fund its expansion plans, conduct community events and reward community members.
DeGods’ floor price has exploded from its strike price of 3 SOL (worth $476 at the time) in October 2021, to a whopping 259 SOL (worth about $10,249) as of July 16, 2022, negating the impact of the 75% drop in SOL’s price at USD39.57 in the same period.
In dollar terms, the floor price has risen 86-fold to USD 10,249 as of July 16 since the minting in October last year, despite the generally muted market sentiment.
At its peak in early June, DeGod’s floor price reached as high as 400 SOL (worth USD 15,600 at the time) per NFT.
The NFTs can be staked to earn $DUST, which allows holders to participate in auctions, raffles and whitelist slots, among other things.
DeGods holders also have access to de.xyz, a community-owned content platform where holders can publish their own content and own all their contributions.
Its DAO recently made headlines with its USD625,000 purchase of 25 “four-tier” NFTs linked to Killer 3’s basketball team – one of the BIG3 three-on-three basketball league teams.
Each NFT was priced at US$25,000 and gives the holder the most say in the associated basketball team’s direction and partial IP rights, as well as providing access to championship rings and submitting new merchandise designs for the BIG3’s approval.
There will likely be more updates from the project in the near future, especially with the team’s next launch for Duppies, another DeGods-associated project that will be minted at $375DUST (USD382.5).
While Diamond Alpha also leverages NFTs on its platform, it does so for an actual physical asset class – lab-grown diamonds – which sets it apart from most blockchain solutions that lack a real resource backing.
Diamond Alpha can be seen as a departure from the manic hype-driven crypto-assets prevalent in the market, as the project aims to provide a stable and sustainable return for those who invest in its fractional NFTs (F-NFTs).
These F-NFTs represent ownership units of a batch of diamond seeds, and holders can stake their holdings to receive returns in BUSD or USDT.
The project seeks to allow users from anywhere in the world to take part in the diamond farming process by harnessing the power of Web3.
Users can expect an estimated 8% return on investment (ROI) in 15 days, subject to market conditions, for those who participate in growing their diamonds from the seed stage to the rough stage. Greater returns are also possible if investors decide to hold on until the diamonds complete the polishing phase.
A portion of the profit or service fee goes to the platform, with the balance distributed among all holders of F-NFTs, based on the number of F-NFTs held.
As NFTs for digital assets have seen some acceptance among crypto-natives and those relatively new to the blockchain space, it is likely only a matter of time before investors look to owning real-world assets via NFTs.
The project also acts as a conduit for traditional financial investors to enter crypto, providing them with a physical asset that can be validated and evaluated with a transparent growth trajectory.
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About Diamond Alpha
Diamond Alpha is the world’s 1St asset-backed Fractional NFT Yield Program, powered by Fract, a “FracTech” provider and the world’s 1St physical asset backed F-NFT trading platform. Diamond Alpha, through its yield program, aims to decentralize participation and access to high margin opportunities.
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