6 Basic Metrics To Evaluate Your NFT Projects

1. 6 Basic Metrics To Evaluate Your NFT Projects If you kept up with the recent trends of NFTs, you would surely be aware of how they are booming in the decentralized market right now. Thanks to their high value, scarcity level, and versatile uses, non-fungible tokens have slowly started to gain more momentum. And while it is pretty easy to buy or sell NFTs, the only way to measure their actual value is by using a few basic metrics. This might seem a bit complicated for beginners, but don't worry! In this feature, you will read from the A to Z of NFT metrics and why you should make them a habit. So, let's get started, folks! What are NFTs? Before you jump into the crux of the matter, you will first need to understand the basics of NFTs, especially if you are an amateur. NFTs (also known as non-fungible tokens) are rare, distinctive digital assets preserved on blockchain networks in layman's terms. The reason why NFTs are one-of-a-kind is that they are indeed in a class by themselves. This means no two non-fungible tokens are the same. And since they are all unique to each other, it is effortless to establish ownership over them. Moreover, you can easily tether any real-world asset into an NFT. This way, you can make both your real-world and digital assets unique in both worlds! For these reasons, NFTs stands as the most highly sought-after digital assets of today's era. 6 Basic Metrics to Measure the Value of NFTs The value of each NFT differs from the other. To get a good idea of how much your NFT is genuinely worth, you will need to understand the basic metric systems. With this, you can build your crypto portfolio and ensure its longevity. Even though learning about the NFTs metric system can sound tedious, the six critical indicators mentioned below are pretty easy to use. Once you get the hang of this, you will easily spot the high-demand NFTs to invest in! Estimated Market Cap The simplest way to check the value of a non-fungible token is with the estimated market cap. All you ought to do is multiply the average price of an NFT with its total supply. Keep in mind that most NFT markets are not as fluid as the cryptocurrency market. Therefore, the value of NFTs will move much slower.

2. Diamond Hand Balance This metric system is mainly created for those who are yet to auction off their first NFTs. In addition to this, it is also a great way to spot promising projects with long-term benefits. This is why investors and traders make use of Nansen Analytics. With this tool, they can quickly discover great opportunities to grow and build their crypto portfolios. Total Unique Holders If you are looking for a particular metric system to tell you the approximate size of an NFT project is, you can use the number of unique holders. If the project has more people involved, the more investors it attracts. This, in turn, makes the market more visible to prospective buyers. If you are curious to try this metric system, make sure to check out the Dune Analytics dashboard. Volume Traded There are several NFT metrics to measure the value of an individual NFT. But what if you want to check the value of an entire collection? This is when you use the volume trade metric method. You can find this on NettyArt.io, Rarity.tools as well as on Opensea. Rarity Score The most popular metric system to check the value of NFTs is by using the rarity score. As the name suggests, this metric tool was developed by Rarity to help investors how much their NFT collection is worth. If your NFT has a good rarity score, there is a good chance that it is more precious than tokens with a lower score. In addition to checking the value of art and other generative NFT collectibles, the rarity score can also be used to check the worth of a single non-fungible token. This way, collectors can quickly review and compare the importance of different NFTs. Minimum Price Last but not least, you have the floor price metric system, which is especially useful for beginner NFT users. With this, every beginner NFT user can easily monitor the wavering values and decide when the best time to join an NFT collection is!

3. Key Takeaway And that's all, folks! Even though there is no sure way to determine the value of an NFT in the future, you can still use the metrics mentioned in this feature to get some direction. Keep in mind that the exact value of a non-fungible token is based on the eye of the beholder. NFTs, in general, can attract a lot of traders interested in making a profit. However, before you settle to do this, you will need to closely look at its extrinsic and intrinsic factors. This is because even if one NFT is not considered valuable by one, it might be worth a lot in the hands of the right owner. So make sure to do some research before you dive into the NFT market!