For the Love of the Game (Market Commentary) |
Before NFTs came on the scene, the following chart was a fairly good representation of patterns that happened in the industry.
Fiat currency flowed in largely through Bitcoin and other large caps before trickling down to mid caps and finally to low caps
(also affectionately known as “shitcoins”). A couple things have changed in the past two years, one being the emergence of NFTs as a digital asset class that fits somewhere in the above cycle. It’s my opinion that NFTs, especially PFPs, are a hybrid of an identity solution, a club, and a FT token. There are different sizes by market cap, Bored Ape Yacht Club (BAYC) and Azuki being the large cap of the NFT market, Mfer's, Nakamigo's, and
Milady's being the mid caps and then basically the rest making up the small caps. Finally, add to the mix meme coins. They really do not profess to have any utility other than social media posting, and having fun! Fun +
memes can now be a digital asset? Yeah. We see this by looking at $DOGE, $SHIBA, and now $PEPE which reached a $150m market cap in several days. The Milady Maker PFP community is rumored to be behind the $PEPE meme coin emergence. Meme coins came back in after the Nakamigos and BAYC communities stagnated and had some large holders leave the community. That, combined with the boredom of retail crypto folks, and boom, on the scene comes meme coin season! It took over for a few days this past week with $PEPE, and others which I don’t really want to mention because I’m not sure it will be a long loved meta. But who knows? The Milady Maker’s PFP assets rose this past week as the meme coin meta kicked off. These new digital assets are now throwing more curve balls into the flow and it’s yet to be seen where they fit in. One thing I know for certain though is that when large caps run, they rise fast, sucking all the liquidity from mid-lower caps. When they stop running, the capital flows back to
mid-low caps. This pattern can happen across all classes (NFTs, fungible tokens) and also across categories as well (PFPs, Game-FI, fungible tokens, and utility NFTs), which is causing the Web3 scene to seem very chaotic. With these liquidity ebbs and flows causing uncertainty even for the most seasoned of traders, it’s clear that new patterns are emerging in the brave new world of NFTs and meme coins. Note that
the observations presented in this text are not intended as financial advice, but rather the insights of an individual who has an interest in recognizing trends and patterns, much like many others in this space. The Forkast 500 NFT Index is down over 2% over the past 7 days, reflecting a sharp decline in the NFT market. A new meme coin called $PEPE has been trading at volume causing high transaction fees on Ethereum. NFT volume on the other hand has suffered as traders practice patience, with many
waiting for fees to normalize. Folks want to play web3 games that are fun. Simple as that. That's why we built Dimension X! Dimension X is built by Crypthulhu Studios, a studio built of mobile gaming veterans. Here’s how Dimension X works: - You create an account with an email via Dapper Wallet
- You create teams using free “account-bound” sidekicks and NFTS that attack the boss.
- If you beat the boss you can
unlock more account-bound sidekicks and earn THUL (the in-game currency) to mint new NFT heroes that can be staked in-game or sold on the secondary marketplace
Each season has new sidekicks and a specialty event. And you can pick
up an NFT hero on the Gaia marketplace - the same marketplace that hosts NBA Top Shot! Dimension X has new game features every 3 months, so you never get bored. And they are expanding to
Ethereum in Spring 2023. |
In Web3 the term ‘meta’ is used to describe
something that is the current trend, shared characteristic, or overall narrative of projects in the NFT space. Meme coins, CC0, pixel art and P2E have each had their turn in the spotlight as the meta in the NFT space, that builders, influencers, and collectors focused their attention on for periods of time. The meta could even refer to a trendy art style, or even community structure. With technology that breeds innovation, we expect the meta to always be evolving, so researching this term will
be key to you keeping up with the newest trends. Happy Researching! Received this from a friend? Sign up for this twice-a-week CryptoSlam VIP newsletter. |
Coming up on our Next Episode Keep an eye out for our new podcast, coming up with Panini, one of the most active digital sports collectible communities in the industry. We will get into why their community utilizes CryptoSlam, what they are working on, and
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