PFP Project Mania is Back!
PFP NFTs are on the rise again. Not that they ever were truly falling, but the price action in the last couple of weeks has been off-the-charts. The entrance of celebrities, influencers, athletes into the NFT space has started to bring in more people, and by extension, more money. This has caused a parabolic move in the floor for blue chip NFT projects like Bored Ape Yacht Club, Gutter Cat Gang, Punks Comics, and of course, the OG of OGs, CryptoPunks.
The new people (and money) flooding into NFTs has also given rise to a story we’ve seen before – the influx of profile picture projects (PFPs). It makes sense. New people come into the space. They see all the cartoon animal avatars, and they want one. They want to be part of a community.
“I’ll just get one of these Bored Apes,” they think. Then they see the price. They think in terms of dollars, not ETH. Paying $125,000+ for a Bored Ape is something they (understandably) simply can’t stomach. So, what’s the solution?
Just like any other industry, NFTs operate on supply and demand. Roughly 4-6 weeks ago, we saw profile pic project fatigue, because the space wasn’t growing quick enough to keep up with the massive amount of PFPs. It wasn’t uncommon to see a project mint, sellout, then immediately have a floor price below the cost of minting.
But now, with influential people coming in, increased media coverage, brands showing interest, and big funding hitting the NFT world, more people are flying in. That means more demand. That means more PFPs.
I’ve written before what I look for in a project, and as PFP mania is kicking off again, I highly recommend you create your own set of principles before jumping into projects. You can make a lot of money in NFTs, but you can also lose a whole lot. And while we’re seeing momentum in projects like SupDucks and Koala Intelligence Agency, a lot of these projects are going to fail, or worse, turn out to be a rug pull. Figure out if you’re a flipper, a long-term investor, or some combo of the two. And, regardless of how you approach it, buckle up. We’re back to seeing several PFPs per day, so it’s time to see the next crop of blue chippers rise up.
Disclaimer: This article is not financial advice. The NFT and Cryptocurrency markets are very volatile. Please don’t invest what you can’t afford to lose. Always do your own research before investing.