Disclaimer: It is impossible to predict the success of an NFT project for a number of reasons: the team can lose momentum, FUD happens, market volatility, NFT bubble, etc. Understand that when you buy any NFT there are always risks. This article is purely for informational purposes. Do not buy an NFT just because I mentioned it in this article. Full disclosure, I own some of these projects but not all. Most people are talking their own bags. DYOR. Not Financial Advice.
When you start to enter the NFT space, it can be overwhelming. You’ll probably make some mistakes and ape into some not-so-great projects that seemed like a good idea at the time. It’s part of learning. But to help minimize risk and regret, I’ve narrowed down some of my NFT picks as examples of solid projects going into the new year.
We're going to be focusing on Ethereum NFTs in this article. You should have some Ethereum (ETH) in a Metamask or web3 compatible wallet and be comfortable enough using it before you start purchasing any kind of NFTs. For more info on setting up a Metamask, follow this link. If you are just starting out in crypto, you will want to spend some time building up a portfolio before you ape into NFTs.
The cheapest NFTs mentioned in this article are over .05 ETH (~$200). Keep in mind you will need extra ETH for gas as well. The price of gas varies depending on the number of transactions on Ethereum blockchain at any given time. It is not unusual to spend upwards of $100 on gas on a single transaction if you need it to go through with average priority these days.
So you've bought some ETH on an exchange and you've held it for a few months. You've hopefully built up a diverse crypto portfolio and you're ready to (sensibly) ape into some projects! This is where the fun begins.
NFTs are normally categorized into Art & Collectibles and Gaming. For this piece, I am only focusing on PFP (profile picture) collectibles. This is because they will likely be the first entry into NFTs for most people. I predict that PFPs will be huge in 2022 because they can be used to represent your virtual identity and personal brand. Many exclusive PFPs are also considered flex goods or Veblen goods. Arthur Hayes wrote a very interesting article about the future of flex goods and the metaverse and I recommend reading it.
PFP NFTs are much more than having a cartoon picture in your ETH wallet. They are an access key to communities full of like-minded individuals. Personally, I have met so many talented and interesting people who would not have reached out to me if we had not shared PFPs from the same communities. PFPs are basically the best networking tool ever invented.
There are many, many projects out there that will have fantastic gains and great communities next year. Many of the top projects for 2022 have not even been released yet. The projects mentioned in this article are solid bets based on the community, team involvement, and utility. Consider this list a guide for what to look for in a 10K PFP NFT collection.
If your interest is piqued by any of the projects in this article, I strongly encourage you to go to the Twitter page and check out the Discord communities for the project before aping in. Useful links are included below.
These are some tried and true NFT projects that I believe will continue to do well in the next year. They are also some of the most expensive, flex-worthy PFPs.
2021 was the year of Bored Ape Yacht Club and it seems like this will carry over into 2022, reaching all new levels. BAYC are the pinnacle of what decentralized community NFT projects are about. It doesn’t matter if you think they look stupid, this collection promises to be the grail of 10k PFP collections after Larva Labs’ CryptoPunks. I believe that they also have the chance to become even more sought-after than Punks in the next year because of the community, team, marketing, utility, etc.
Even at current floor prices at the time of writing this article, (MAYC ~11.5 ETH, BAYC ~60 ETH), I think it’s likely that we will see floors continue to move upwards in 2022, especially prior to the token drop.
The level of success for BAYC ecosystem in 2022 will hinge on the token drop and how it plays out. But the community is ultimately what makes this project and a mass sell-off seems very unlikely with the current momentum. This is because many ape holders are way too attached to their apes and the community that BAYC offers. The distribution of holders is also good (BAYC ~6k holders, MAYC ~11k holders). Even distribution of holders means that most people only have 1 ape and are less likely to sell.
Runners up:
MetaHero Universe: Generative Identities - PixelVault is building the Marvel of the Metaverse. One of the most ambitious projects in the space, the team is planning to develop a game where your NFT doubles as a playable character. Artwork is by Marvel artist Chris Wahl and Odious.
There are also plans for the game to be an actual metaverse with different planets governed by their own DAOs. You can buy a Planet DAO Token on OpenSea as well if you would like to partake in DAO governance. This is definitely a long term play but the floor will see some positive action this year as they announce new developments. At ~3.5 ETH currently, the Metahero Generative Identities are likely undervalued and were once above 6 ETH. This is probably because the team has been quiet and busy working on Punks Comic as well. It has been a big year for PixelVault since partnering with Adidas as well as signing with one of the biggest talent agencies, WME. I would expect big things.
For the higher tiered version, check out the Metahero Core Identities, which are fully-matched concept characters. The team has mentioned that core identities may receive some dividends.
Runners up:
These projects could see substantial gains because they already have strong communities. With more normies entering NFTs in 2022 they are a reasonable entry and I can see many aping in. At the very least, they are wonderful communities to be a part of in the space.
A seriously undervalued gem, Deadfellaz should be included in one of the above categories. The founders Betty and Psych are some of the most influential and hardworking leaders in the space.
Deadfellaz is also featured on the Coinbase NFT Twitter banner so when the marketplace launches next year I would expect them to pump back over 1 ETH and even higher. Their community is one of the most avid in the space as well.
Runners up:
These projects are the least expensive but are also going to be the biggest gamble because they have not yet earned their stripes. The good thing is that you can ape into them without losing too much. I wanted to include some less expensive entries so here they are.
The mfers are a fun, super-degen community that has the potential to be something really special. The best thing is that the project doesn’t take itself too seriously. Sartoshi launched the project with no roadmap and no discord (although the community started an unofficially official discord in true spirit of decentralization). Sartoshi has also been really active in the NFT space for a while and has built up a good reputation.
The project was well-received by most everyone in the NFT community, and many OG degens aped in and still hodl their mfers. With the floor below .06 ETH, I think this is great entry. A good play would be to buy 3 or more and sell them as they start to go back up in price.
Runners up:
So those are my top picks. Of course there are many great opportunities out there and it’s impossible to know about every one. Do make sure to research and try to resist buying into FOMO and hype. You will be much better off watching and waiting to buy the bottom of a good project that you have confidence in, than buying at the top and watching it go down.
Thanks for reading!