The Rise and Fall of Blue-Chip NFTs: A Focus on PFP Collections
Exploring the Challenges of Maintaining Value and Community Involvement in NFTs
The concept of blue-chip NFTs refers to non-fungible tokens whose value has skyrocketed, and market observers predict that these digital assets will maintain their high valuation for a long time. However, some collections of NFTs, particularly PFPs (profile picture projects), are losing steam and suffering from declining valuations. This article will explore this phenomenon and discuss potential solutions.
The Cool Cats NFT collection reached a peak value of 0.75 ETH, despite launching secondary collections such as Shadow Wolves and CCFC. However, at the end of January 2022, the floor price was 15 ETH.
The Doodles collection currently has a value of approximately 2.3 ETH, but an announcement was made to the community incorrectly, and the floor price had been as high as 23.9 ETH. In addition, the founders stated that Doodles was no longer an NFT project, but instead, it would become a leading media franchise, which did not please the NFT speculators.
Moonbirds was another project that experienced a decline in value, dropping from a high of 38.5 ETH to 2.5 ETH today. The founder announced that the collection would become cc0, despite some holders signing contracts for image rights. While the BAYC collection has sustained itself well, its value has decreased from just over 150 ETH to 50 ETH.
In contrast, collections such as Punks, Alien Frens, and Pudgy Penguins have maintained value due to their historical significance and artistic context. However, most PFP collections have struggled to sustain their communities due to the inherent nature of speculation. Community building is challenging to sustain in the long term, and a community’s declining membership and capacity for construction can cause abrupt market declines.
To mitigate this issue, collections have employed various tactics such as giveaways, secondary collections, games, access to events, and clothing. However, these resources can only last for a certain period. In the long term, collections that focus on branding and a greater purpose are more sustainable. Nouns is a prime example of such a collection that is not centralized and has a clear purpose.
Community building is not solely about providing resources and waiting for holders’ support, but it is about creating an environment of construction. Unfortunately, most PFP servers lack a platform for holders to express their ideas and opinions, indicating a lack of genuine community involvement.
In conclusion, NFT PFP collections are experiencing a decline in value and community involvement. While some collections have maintained weight due to historical significance, collections that focus on branding and a greater purpose are more sustainable in the long run. The key to sustaining a community is not merely providing resources but fostering an environment of construction and encouraging holders’ active participation.
