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NFT evaluation seven steps: market value, trading volume, floor price, etc.

This article is about 815 words, reading the full article takes about 2 minutes
This article provides evaluation ideas for NFT players from seven perspectives
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This article provides evaluation ideas for NFT players from seven perspectives

Original title: "Original title: "

A must-have book for NFT investors! These 7 indicators should be fully utilized

By: Spencer Noon, Variant Fund

Co-Founder Compilation: Kyle

Spencer Noon, co-founder of Variant Fund, recently tweeted 7 indicators that NFT investors can use to evaluate projects. Noon explains the purpose of each metric, why it was chosen, and the tools website to get them.

1. Estimated market capitalization

Calculation method: 7-day average price * total supply

Reason for choosing this metric: Compared to fungible tokens, the NFT market is generally less liquid and transfers are much slower. This metric is useful because it removes outdated input data (eg: early cypherpunk sales)@raritytools

Recommended tools:

2. Diamond hand balance

Note: Diamond fingers represent those who are not afraid of market fluctuations and hold positions until the target

How the balance is calculated: the total amount of NFT belonging to addresses that have never sold any NFT of a given collectible

Purpose: Useful metric for identifying projects with real long-term believers@nansen_ai


Recommended tools:

3. Sole holder

Purpose: Helps understand the size of the project community

https://dune.xyz/danner_eth/NFT-Comparison


Recommended Tool: Use the @drakedanner Dashboard on Dune Analytics

4. Transaction volume

Purpose: To understand the basic but important indicators of the overall market demand of the project

Important note: The indicator should not be used alone as it can be exploited by whales. Works with unique addresses (above)@opensea

Recommended tools:

5. Rarity Scoring

Why: All things being equal, NFTs with higher rarity scores are generally more valuable than NFTs with lower rarity scores, if you have no aesthetic preference.@raritytools

Recommended tools:

6. Floor price

Reason: A useful metric to monitor how expensive it is for a user to join an NFT community@fractional_artNOTE: Anyone can also use a similar application (such as

Recommended tools:@Zeneca_33ofof

Google Sheets

7. Eligibility Assignment

Purpose: Show how NFT ownership is distributed over time

Why: Knowing which NFT projects have a long-term community focus is a useful indicator.@nansen_ai

NFT
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