🧘♂️ALERT: Serious Profit Potential
Market Meditations | December 1, 2021
& How To Grab It!
Dear Meditators
The NFT space is unrelenting.
New use cases and utilities, alongside opportunities for profit, continue to arise.
Today, we are going to dive into the different methods of making money in the NFT space, diving deeper into one of our favourites.
Today’s Meditations:
Top Crypto Headlines
Nansen x NFT Alpha Deep Dive
Essential LUNA Updates
ALGO Deep Dive
Read, enjoy and share with your network. Let’s all build wealth together.
With Nansen’s On-Chain data, you can secure an edge in the crypto and NFT markets:
? Exciting New Opportunities. See where funds are moving their money.
? Perform Due Diligence. Get more information on projects or tokens.
? Defend Your Positions. Create smart alerts to track over 100 million ETH wallets.
? Track The Biggest NFT Traders. See what the most profitable NFT wallets are investing in
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⏰ In A Rush?
Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.
Methods of Profiting from NFTs
Trading: Buying and selling for a short or medium term profit
NFT gem hunting: Finding early stage projects that give large future returns
Minting: The act of creating an NFT or being the first into a new project
With Nansen, we are able to break down these methods, assessing the best performers in each. To do this they have introduced new smart money categories of Smart NFT trader, hodler, early adopter and minter (for more details check out Nansen’s label guide).
Of these, minting often allows the cheapest entry price into a new project so next, we will dive deeper into current minting activity and what we can learn.
Minting Activity
Nansen.ai: 01/12/2021 – Latest Mints
The clear leader in mints is the Wizards and Dragons Game with almost 5,000 minters and 56 smart minters in 8 hours
Nansen’s FOMO level is high indicating a high level of activity
Smart Money Mints
We are then able to drill down into which segment of the market is currently minting these NFTs:
Nansen.ai: 01/12/2021 – 24 Hour Smart Mints Breakdown
The first column shows us the number of smart money minters of Wizards and Dragons and exactly which smart money category they fall under. We can see that participants from all over the NFT ecosystem are looking to get involved in the project.
So what is this project and why is it receiving so much interest from so many smart participants?
Narrative Check: NFT gaming with DeFi Mechanics
Wizards and Dragons is a game that looks to build on a growing sector: NFT games with DeFi mechanics.
In this example there are two types of NFTs, Wizard and Dragons.
Staking Wizard NFTs allows the holder to earn in-game currency however Dragon NFTs receive 20% of this when claimed and have a 50% chance to steal all accumulated tokens when unstaking – introducing an element of strategy.
The first project to attempt these mechanics was Wolf Game and whilst that specific project has faced several technical challenges, it is clear this is a growing trend in the NFT space.
Conclusion
As we see the NFT space maturing, new trends and opportunities for profit present themselves. However, these also become more difficult to find.
Using tools such as Nansen, we can break down different sectors, identify trends and learn to beat the market.
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? Luna Ticks Up
LUNA set a new All Time High (ATH) for the second time in November yesterday, climbing up by about 50% since Friday last week.
There are a few factors behind this move including the Columbus 5 network upgrade in September.
The key points:
Luna is the Terra blockchain’s native token, which is directly coupled with the stablecoin UST. As demand for UST increases, an equal amount of LUNA is burned to help keep the peg.
Maximising the number of use cases for UST across as many different blockchains is a key part of Terra’s strategy.
Bridges are in place allowing the transfer of UST and LUNA between Terra, Ethereum, Solana, Binance Chain and Cosmos blockchains. This creates a lot of liquidity for developers to feed off.
As more dApps and protocols have adopted UST or incentivised the use of LUNA, demand for both has surged in November, resulting in about ~92 million LUNA being burned.
Terra is now the fifth-largest DeFi chain with a Total Value Locked of around $11 billion (or 4% of all DeFi).
To view more analytics on the Terra blockchain check out this dedicated site.
And go here for a more detailed understanding of how LUNA and UST work together or check out this simple video.
?Put Your Money Where Your Mouth Is
While we await Ethereum’s answer to our cries for cheaper gas fees, other layer 1 chains have been and continue to steal the spotlight and liquidity.
Former MIT professor Silvio Micole, created Algo to be interoperable and handle high volume, making it appealing to institutions and governments.
He must have been onto something, El Salvador chose it earlier this year to build out the country’s blockchain infrastructure, even after a public courting by Charles Hoskins.
In the end, El Salvador President Bukele said he chose the tech that could bring their national stable coin to market first.
Algo has been commissioned to tokenize the Brixton Pound, bring a digital currency to the Marshall Islands, and is used all across Latin America for everything from Covid-19 response to point-of-sale credit issuance systems and smart contract financing platforms.
Borderless Capital isn’t just shilling Algo, they are putting their money where their mouth is.
They recently announced a $500 million fund to power the next generation of decentralized apps on Algo.
This isn’t the first time they have raised funds for Algo’s ecosystem development either; in June of 2019 they raised $200 million.
Skybridge CEO, Anthony Scaramucci is also impressed with Algorand’s tech, stating that he plans to bring them to the forefront of regulated products, digital securities and currencies, as well as payments.
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??♂️✍️ Stories in this newsletter were written by D. Beverly, Isambard FA, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.
Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.
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