Non-fungible tokens, or NFTs, have gained a lot of attention over the past few years and have become credible investment options for crypto enthusiasts and art buffs. However, as the market continues to grow exponentially, it has become quite challenging to identify quality NFT projects that have promising futures.

So, if you are planning to invest in an NFT project in today’s NFT market, you might want to identify a project that has a promising future. 

To help you with that and make sure your hard-earned money is invested in the right NFT project, we have come up with this article, discussing the essential steps that you need to take to identify quality NFT projects with a promising future. 

Check out the following sections for all the details!

How to Identify Quality NFT Projects to Invest?

Now, when it comes to identifying quality NFT projects in the sea of NFT collections that currently exist, there is no specific procedure or formula to adhere to.

However, there are a few steps that you can take to find a good NFT project with a promising future on the market. Check them out right below:

Step 1. Research the NFT Creators and Community

Once you find your niche and target an NFT project that you want to invest in, the first thing you must do is research its creators and the community around the project.

Creators of a quality NFT project should be easily reachable on social platforms and must be passionate about their project. In case the creators of the NFT project are anonymous, it is a sign that the project is not legit.

Another important factor you must consider when you want to identify quality NFT projects is the community around them. If the community of the NFT project you are looking to invest in had organic growth over a period of time, it is most likely a legit NFT project that can have a successful future.

So, researching the NFT creators and the community members is one of the essential steps that you must follow to identify quality NFT projects with promising future potential.

Step 2. Evaluate the NFT Utilities

The next step to identify quality NFT projects is to evaluate the utilities that are offered by them. NFT utilities are the extra perks and benefits that are offered to holders of an NFT project and they can be essential factors when it comes to identifying quality NFT projects.

how to identify quality NFT projects
Credit: Bored Ape Yacht Club

So, if the NFT project you are planning to invest in is offering exclusive perks like access to a private lounge, physical item claim, Metaverse events, NFT airdrops, access to exclusive VIP events, and other such benefits as utilities, there is a high chance that it is a quality project with a promising future. 

Step 3. Be Aware of the Long Term Goals of the NFT Project

Now, NFT projects are not for the short term and should have achievable long-term goals in the form of a roadmap.

Legitimate NFT projects usually have a specific roadmap for their future development with goals that can be achieved. NFT projects with exaggerated future goals that are very difficult to achieve may not be legit after all.

So, before investing in an NFT project, research its long-term goals, and evaluate whether or not they are really achievable. This way, you would know if the NFT project you are investing in has a healthy future or not.

Step 4. Evaluate the Rarity of the NFTs

Apart from the above factors, you must also evaluate the rarity of the NFTs included in the project you are looking to invest in. The more rare the NFTs in the collection are, the more valuable they will be in the future.

So, if your targetted NFT project includes fewer copies of the included NFTs, it means that the rarity of the project is high. However, if there are many copies of a single NFT in the project, the rarity value for the project is on the lower spectrum.

Step 5. Consider Market Capitalization the NFT Project

The market capitalization of the NFT project also plays a significant role in determining its future. It is essentially a factor that shows how liquid an NFT is or how much easier it is to buy or sell the NFT in the project.

how to identify quality NFT projects
Credit: OpenSea | TheIglooCompany

If the market cap for the NFT collection in which you are planning to invest is low, it might become difficult to sell your NFT and gain a profit from it in the future. If, on the other hand, the market cap is high for the project, you will be able to easily sell your NFT in the future.

One of the platforms that can help you evaluate the market capitalization of NFT projects is rarity.tools. There, you can also check the trading volume of your targetted NFT project and evaluate whether the interest rate for it is increasing or decreasing in the current scenario.

Identify Quality NFT Projects with a Promising Future!

So, that wraps up our guide on how to identify quality NFT projects with a promising future. Finding a good NFT project to invest your time, effort, and money can be a lengthy process, especially in today’s dynamic NFT market.

However, once you find a legitimate NFT project with high-quality NFTs and a promising future, investing in it could yield great results for you in the coming years.

Frequently Asked Questions (FAQs)

How do you know if an NFT project is good?

There are various factors that you can evaluate to identify quality NFT projects. These include track records of the NFT creators, the community around the project, the market capitalization of the NFT project, and the rarity of the NFTs.

What is the most promising NFT project?

Although there is no specific way to determine the most promising NFT project, some of the high-potential NFT projects in the current scenario include RobotEra, Polygon Doodles, Saved Souls, Fight Out, and Metropoly.

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