Exploring Blue Chip NFTs: Definition and Top 5 Projects

The NFT market has revolutionized the value of digital assets across various fields. According to NFT data platform, Footprint Analytics, in 2022, the NFT market generated over $56.5 billion in sales with more than 3 million unique buyers. A Q2 2022 report by Dapp, an NFT tracking platform, reveals that blue chip NFTs are gradually becoming a more reliable asset class than cryptocurrencies.

What are Bluechip NFTs?

Blue Chip NFTs are non-fungible tokens (NFTs) that are considered to be of high value and quality. The term "blue chip" comes from the stock market, where it is used to refer to stocks of well-established, financially sound companies with a reputation for quality and stability.

Similarly, in the NFT market, Blue Chip NFTs are those that are created by well-known and respected artists, are highly sought after, and have a proven track record of consistently high sales and value appreciation. They may be one-of-a-kind works of art, limited-edition series, or even virtual real estate. These NFTs are typically sold for significant amounts of money, with some fetching millions of dollars at auction.

This article provides insights into blue chip NFTs, their characteristics, and 5 prominent blue chip NFT projects that you should keep in mind as they are changing the way of digital ownership.

Characteristics of Some Bluechip NFTs Projects

Blue chip projects in the NFT market are typically known for their high value and quality. Some of the key characteristics of blue chip NFT projects include:

Established Reputation: Blue chip projects have a well-established reputation in the NFT community. They are often created by well-known and respected artists, developers, or creators who have a track record of producing high-quality work.

Rarity: Blue chip NFTs are typically rare or limited edition, meaning there are only a few of them in existence. This rarity contributes to their value and demand.

Longevity: Blue chip NFT projects are often built to last, with the intention of becoming a valuable and long-lasting asset. This means they are designed to stand the test of time and hold their value over the long term.

Community: Blue chip NFT projects often have a strong and active community of supporters and collectors. This community contributes to the project's success and helps to create a sense of value and belonging around the NFT.

Liquidity: Blue chip NFT projects are often highly liquid, meaning they can be easily bought and sold on NFT marketplaces. This liquidity makes it easier for investors to enter and exit positions, and helps to maintain a healthy market for the NFT.

Overall, blue chip NFT projects are those that have a strong and established reputation, are rare and valuable and have a dedicated community of supporters. These projects are considered a safer investment compared to other NFTs due to their proven track record and stability.

Bored Ape Yacht Club (BAYC) 

Bored Ape Yacht Club (BAYC) is a collection of 10,000 profile images minted by Yuga Labs on the Ethereum blockchain. These images depict apes with various randomly generated traits and decorations, each with a unique character that sets them apart from one another.

When you purchase a BAYC NFT, you also gain access to the BAYC club, which offers membership benefits such as exclusive staking pools, access to a member-only graffiti board, and the right to other NFTs within the BAYC ecosystem. This ecosystem includes the Bored Ape Kennel Club and Mutant Ape Yacht Club, both of which are also among the top ten NFT collections by market capitalization.

BAYC was the best-selling NFT collection in 2022, with volume sales reaching almost $1.57B. By owning a BAYC NFT, you not only own a unique and valuable artwork, but also become a part of a vibrant and active community of collectors and enthusiasts.

CryptoPunks

CryptoPunks (PUNK) is one of the oldest NFT collections developed by Larva Labs. This collection of 10,000 images was minted on the Ethereum blockchain, with inspiration drawn from the London punk scene. The collection includes 6,039 male punks and 3,840 female punks, with 696 punks sporting hot lipstick, 303 with muttonchops, and 286 with 3-D glasses. Owning a PUNK NFT gives you exclusive rights to a unique pixel avatar.

In 2017, Larva Labs freely minted 9,000 CryptoPunks to the public as a trial and held onto the remaining 1,000. Notable holders of CryptoPunks include DJ Steve Aoki, who is collaborating with fellow PUNK holder 3LAU on a CryptoPunk-inspired conceptual music/art project.

Over the years, CryptoPunks' sales volume steadily increased, and in the last quarter of 2022 and the first quarter of 2021, their demand rose sharply. In 2022, they recorded a sales volume of 575.2M, with CryptoPunks' trading value on its native marketplace consistently making up 3% of NFT marketplaces.

Owning a CryptoPunk NFT not only gives you unique and iconic artwork but also provides a sense of exclusivity and belonging within the community of collectors and enthusiasts.

Azuki (AZUKI) NFTs 

Azuki (AZUKI) NFTs are a collection of 10,000 generative anime-like avatar NFTs that rank among the most popular blue chip NFT collections. The collection was minted using the ERC-721 standard and includes unique traits such as hair, clothes, background, abilities, and tools like swords and skateboards, which distinguish the 10,000 Azuki NFTs. The most valuable Azuki NFTs are the "Spirit" type, which consists of only 0.97% of the entire collection.

Launched in early 2022 by Chiru Labs, a group of Los Angeles-based artists and developers, Azuki has gained popularity despite the controversy surrounding one of its founders regarding his involvement in some dubious NFT projects that were considered rug pulls by the NFT community. By buying an Azuki NFT, you gain access to "The Garden," a closed group of the Azuki collectors' community.

Despite the controversy, Azuki has survived the storm and is now among the top five NFTs by all-time trading volume on OpenSea. In 2022, the collection recorded a sales volume of approximately $850M, solidifying its status as a blue-chip NFT collection.

Doodles 

Doodles (DOODLE) is a collection of 10,000 NFTs created by Evan Keast, Scott Martin, and Jordan Castro, with Keast and Castro previously involved in the launch of CryptoKitties. Martin, on the other hand, had established his creative brand and created how-to-own artworks in the blockchain industry. Each DOODLE NFT is unique, with specific traits determining their rarity, and ownership gives you voting rights for experiences and activities supported by the Doodles Community Treasury.

In just one month after launch, Doodles announced the appointment of Pharrell Williams, an artist, and producer, as their Chief Brand Officer, resulting in a 1,200% increase in sales that month. In 2022, Doodles achieved a sales volume of $391.6M. Doodles' upcoming focus is on music and gaming NFTs.

DigiDaigaku

DigiDaigaku is a collection of NFTs featuring 2022 distinct characters created by Limit Break, a company founded by game designers Gabriel Leydon and Halbert Nakagawa. As of today, there are 2021 NFTs in existence, held by 843 unique owners, with a total market cap of $30,601,401.84. The current price floor for DigiDaigaku is $15,141.71, and the 24-hour sales volume stands at 416.04 ETH. While these characters presently reside in an enigmatic world concealed from the public eye, Limit Break plans to reveal more information about it over time.

We @LimitBreak are excited to have raised $200m to bring web3 to the masses. Here’s an article written by @deantak for @VentureBeat about @LimitBreak’s game plan. https://t.co/tD4O3rWHgz

— Gabriel Leydon (FREE,OWN) (@gabrielleydon) February 12, 2023

Conclusion:

Blue chip NFTs are a type of NFT that is highly valuable and sought-after due to their historical value, brand power, the strength of the team behind them, practical utility, and a strong community of collectors and fans. These digital assets are prized for their rarity, collectibility, and exclusive access to communities and events. For those looking to invest in NFTs, blue chip projects are an excellent starting point due to their strong track records, high sales volume, and passionate communities. 

This article is for informational purposes only and should not be considered financial advice. Prior to investing in any NFT or cryptocurrency, always conduct your research.