In this video I take a look at the latest rotations in the NFT space as traders deal with declining volume.
If we step back and look at the market as a whole we’ll see that things are looking pretty ugly. The core piece of the NFT meta (10k pfp collections like BAYC, Cryptopunks, Doodles, Azuki) is losing momentum. As a result traders are adapting to a new meta and they’re taking bigger risks to find alpha.
In this video I talk about this system of finding new ”rotations”, the pros and cons of this strategy, and some predictions for the trends that might dominate the next few weeks and months.
kaiju kingz drop:
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0:00 start there
0:52 the changing meta
1:28 RIP cute NFTs and meme projects
2:40 the thing about influencers
3:24 solana summer
5:58 UTILITY and DAOs
7:32 free mint season is back
8:29 too old to fail
9:04 art blocks and FX hash
10:01 strategy pros and cons
By now you may have realized that the Nft space is going through a transition The last couple of days on openc have Been horrendous you’d have to go back More than six months to see this kind of Drop off in volume so the speculators Are getting flushed out we’re wiping Away all these fomo driven projects and In general it’s a cleansing of the soul After a year of truly degen behavior but Even when it looks like we’re heading to Goblin town there are gonna be Opportunities along the way and despite The overall volume dropping like a rock There are still these pockets where Traders are doing very well so here’s What we’re talking about today okay the Core piece of the nft meta is that 10k Profit collection okay and this has been Taking a lot of hits and it’s losing Steam and as a result traders are Leaving those collections but they’re Not leaving the game entirely okay They’re just waiting for the next Rotation or just sitting on the Sidelines smashing the like button over And over until the next nft meta takes Shape the best description of how this Works comes from this post written by Kobe who’s a crypto og where he says Sometimes you can simply see that you Miss the current meta and use that info To exit positions that are out of meta To preserve value or just take a break
And restore mental energy as the meta And attention shifts to new things Capital bleeds out of previous metas People sell the last meta they fo mode For the next one it’s a video game Players want to play they don’t want to Be idle so today we’re going to outline Some of those potential rotations as Well as discuss the risks and rewards of Following traders into them in the first Place but before we talk about what’s Coming up we have to briefly touch on What’s going down which in this case is Well most of the profile pick Collections on ethereum specifically We’ve seen a huge drop off in those cute Art collections that were so hyped up in January and february for example we’ve Seen huge drops in cool man’s universe Alien friends star catchers and three Landers which i personally took a loss On we’re also seeing a lot of those Short-term memes get killed which isn’t A total surprise if you’re following This channel but if we look at this Tweet by punk 9059 a month ago frank Frank did a thousand six hundred and Fifty eat a volume in a day two months Ago kevin punks did 250 eat of volume in A day yesterday they combined for a Total of .4 eat of volume memes with a Moment can be fun but be fully aware You’re playing a hot potato with your Money and just this week we saw not okay
Bears pump up 2.3 eth in a day before Getting de-listed on openc and dumping The very next day however this is just a Sample of the pain that’s being felt by Most collections right now okay and People are feeling a little Disillusioned in buying into the next 10k profile pick collection that’s going To give you another no utility airdrop Down the road with no actual brand Building outside of the nft space now All markets are melting to some degree Right but the difference here is that With nfts individual influencers hold a Lot of sway over public opinion and they Can drum up fomo out of thin air for Brand new projects even during a bear Market as a result the influencers that Want to keep playing this game will keep Coming up with brand new plays okay just Like in wolf of wall street they’ll come Up with another special idea another Situation another nft and so when you Have these people that are trying their Best to avoid goblin town you know when You get the heart of the nft world Getting drained a bit that starts to Flow into these random pumps at the Edges of the map so with that said let’s Get into some of these rotations and Then at the end we’ll discuss the pros And cons the risks and rewards of this Strategy in general so rotation number One is solana summer over the last few
Days we’ve had more and more people Calling for a solana summer and for Those that don’t know solana is the Second most popular chain for nfts only Behind ethereum in the last 30 days it’s Had about 10 of the volume that we saw In ethereum but is still easily ahead of Any other chain but more recently solana Marketplace magic eden actually Surpassed open c on a 24 hour basis the Hype has definitely picked up recently And a lot of it could be attributed to The rise of ok bears which launched just Back in april and has already arguably Become the most popular solana Collection ever but we’re also seeing a Couple other collections start to get Buzzed as well like reptilian renegade And the gods now to be fair on this Channel we have been talking about a Potential solana bull run for a while And you can check out the video i did on That a few months ago but i’ll give you The quick summary so number one solana Is better for active traders because of Its incredibly cheap transaction fees When you compare to gas fees on ethereum Number two solana has been quickly Improving its nft ecosystem so it now Has better tools better marketplaces etc Number three solana nfts are now found On openc which brings it more front and Center for each collectors and number Four solana is better suited for more
Dynamic nfts which in my opinion are the Next phase for the space so in other Words there are sound reasons why solana Nfts should get more love and why Creators should take that chain more Seriously but what we’re seeing right Now where seemingly overnight every Alpha discord is talking about a pivot Into solana and everyone’s parroting Solana summer on twitter that seems a Little forced look on one hand you could Argue that okay bears open the door for Each collectors to take solana more Seriously but on the other hand the Timing seems a little convenient given The recent collapse on openc which makes Me think that a lot of this is just People running for cover also to be fair Yes eth nfts are down and that’s Slightly because of the macro but it’s Also slightly because of the reason that You know there just haven’t been that Many interesting or creative projects Recently but when new projects do come Out they’re still able to generate a ton Of demand if they have the right story Just a couple of weeks ago phantom Network raised over 30 million dollars From their mint and just a couple of Days ago crypto packaged goods raised Over 10 million these are pretty serious Numbers and they tell me that you know Each collectors haven’t checked out Completely they’re just waiting on the
Sidelines for the right projects to buy Into so i don’t necessarily buy the Narrative that solana is quickly Replacing eath as the home of nfts i Just think this is a quiet period for Eth and it’s a little bit of a case of The grass is greener on the other side Okay rotation number two utility tokens So if the biggest declines happen in Collections that were purely built on Hype that it makes sense that people Look for safety in projects that offer Short-term utility a common example are Private communities so basically places Where you can network with others and Potentially find co-founders or start Side projects with like-minded Individuals you can also have tokens That are tied to software like pre-min a Very popular white list platform which Currently is at a price of about 1.3 eth Down more than 50 from its peak a few Weeks ago another form of utility that i Think is gonna be explored a lot more is Governance okay so basically an nft Acting as a dow or decentralized Autonomous organization we saw a bit of This last year with daos that simply use Their money to buy other nfts but i Think we’re just scratching the surface On what is possible when you get a lot Of people that pull money together and So i do expect more dials that give People control over the direction of the
Project and a recent example that is Gaining momentum is lil nouns which is a Derivative from the original nouns Collection so here we see little noun’s Artwork is in the public domain so it’s Cc0 one little noun is born and Trustlessly auctioned every 15 minutes Forever 100 of little noun auction Proceeds are trustlessly sent to the Little knowledge treasury and Importantly all little nouns are members Of lil noun’s down so basically there’s An auction every 15 minutes and every Little noun gives you a vote in the Doubt there’s currently no limit to how Big the supply can get but again since Everyone has a vote they could Theoretically end the supply whenever They want okay rotation number three Free mints so when the easy gains are Gone people tend to go risk off and There’s nothing less risky than a free Mint and just at the time of this video We saw an announcement from kaiju kings That they’re having a free open edition Mint with a 40 hour window so if you’re Watching this right when i released it Because you’re part of the nody gang That means you probably have a few hours Left we’ve seen a few of these free Mints perform pretty well over the last Year including loot and small brains and So i do expect this meta to take shape Even more if people start getting very
Stingy with their eats the thing to keep In mind though with free mints is that They either a need a plan to start Making money pretty quickly or b keep a Lot of their nfts in their treasury to Be able to use that as a resource to get Things done but aside from that i do Think this is an amazing and Underexplored way to build a project and Recently i did release my own free nft Collection called midnight labs which is A private community if you want to hear More about it check out the thread Pinned on my twitter okay rotation Number four is nft archaeology if you Look at the micro cycles of the nft Space over the last year you’ll see that Time and time again attention shifts to A class of nfts that are deemed too old To fail basically the older the nft the Better and the logic stems from the Traditional collectible world where Having an early edition of something is Typically seen as more valuable Typically the bold case for these is That they’ll matter a lot more when the Nft space is 100x what it is today and So i’ll throw a chart below that shows a Bunch of these early projects some of Which have pretty inexpensive price Points right now and lastly rotation Number five is generative art so at this Point it’s pretty clear to some of us That gen art will be seen as a pivotal
Moment in art history and the fact that A lot of these influential artists that Made up the movement are still active And they’re still making projects tells Me that it’s likely that attention will Keep returning to this part of the Market so just last week we saw that art Blocks which is one of the biggest Platforms for gen art saw a big spike in Volume for a few days it has come down a Bit since then but our collections like Fedenza and ringers saw a ton of volume Presumably after people liquidated some Other nft positions and top collections On fx hash which is a much less Expensive platform on tezos have also Been doing very well the fact is that Many of the og nft collectors are huge Fans of gen art right and they have big Platforms they can sway public opinion And now that they’re not getting drowned Out by you know the next fomo pfp drop It’s possible that they start Controlling the narrative again all Right so there you have it those are Some of my guesses on potentially the Next rotations if a bear market Continues and there could be more all it Takes is somebody coming up with a Unique feature then i get some copycats That are adopting it and then all the Sudden we’re heading in a new direction Now you could say that this proves that Nfts are only about chasing short-term
Trends and you’d be right but you should Also realize that this is pretty much How the whole world works for example It’s why fortnite’s success with battle Royale led to the introduction of a Battle royale mode in basically every Other multiplayer shooter since now keep In mind guys that we could just be at The beginning of more short-term pain Pretty much across all markets and these Playbooks could just be people trying to Make a few bucks with some quick trades On the way down it’s pretty clear that We’re in the middle of a storm and some People just aren’t willing to accept it And so this is as risky as it gets right It’s pretty much hot potato with much Shorter life cycles than you might be Used to and for every person that makes Money there could be 10 others that Simply get wrecked but if you think you Know what you’re doing and you’ve handed In your parental waiver slip then who am I to judge there are clearly some solid Trades out there even if the broader Market keeps dropping otherwise if you Want to stick with those long-term buys Like we always talk about on this Channel then just keep looking for those Top creators with brand name recognition And i think that strategy will continue To do well alright guys that’s it for Today thanks for watching and i’ll catch You in the next video
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