Published on August 12, 2022
What is a Blue Chip NFT?
Learn which elements make an NFT project a blue chip and learn how to identify up-and-coming blue chip NFT collections.
8 min read
Every day, a new NFT project or Web3 venture hits the market. Yet not all are created equal. There is an influx of ideas on what this emerging world of NFT projects, blockchain, and cryptocurrency will become and how these digital assets can best be utilized.
Some projects seem more like moonshots than realistic, useful efforts. Even still, some NFT projects have garnered quite a lot of attention and reputation in their short existence, placing them ahead of the pack. It’s time to meet the Blue Chip NFTs.
What does Blue Chip mean?
Named after the highest tier blue chips in poker, the phrase came to prominence in the world of financial traders. In the stock market, blue chip stocks stand above the rest due to a few factors. Usually, these stocks are legacy or established companies with huge brand appeal and reputations. In addition, these companies most likely deal in popular services or products that are highly resistant to bear markets. Some examples include Google, Walmart, Coca-Cola, and McDonald’s.
Investors who like to play it safe, love a good blue chip stock. These stocks help ground portfolios, with low risk and high reliability, even if they aren’t going to the moon anytime soon. Blue chip companies are strong holders of value, and obviously, such a quality is not only limited to one type of financial market. In the NFT space, blue chip projects are proving to be the ones that weather the storm.
What makes an NFT project a Blue Chip?
There is clearly one big difference between traditional blue chips and Blue Chip NFTs: time. Unlike Coca-Cola, even the most established NFT projects like Bored Ape Yacht Club are still barely over a year old. In crypto time, that seems like a lot compared to the churn and burn of other NFT collections. However, it’s good to consider the relative youth of the NFT space in general.
That said, there are qualities to seek out and identify Blue Chip NFTs.
Qualities of an NFT Blue Chip
As mentioned, NFTs, blockchain, and even the general population’s understanding of digital assets are still young. A powerful signifier of a blue chip NFT project is one that has lasted multiple years. Importantly, this proves it is not one of the many scams out there. The NFT market is not for the faint of heart, so even the fact that a project has lasted speaks in its favor.
Is the NFT collection actually useful? Now, it doesn’t have to be curing world hunger, but NFT projects should have some clearly defined purpose for their community. Many roadmaps go into great and complicated detail over how their NFT project is different than the rest - or how it is innovating the metaverse like none before it. However, the best projects (so far) are much simpler proposals. From PFP (Profile Picture) to gaming, Blue Chip NFTs provide real utility value to their collectors, users, and fans.
The NFT market may be one of the only financial spaces in history to have hugely successful developers also remain completely anonymous. To some, this is a positive sign of the decentralized vision of a blockchain economy.
To many others, though, especially investors, it can become a huge liability. Too many NFT investors have been victims of a rug-pull or other scams, where an NFT project enters the space with big promises – and then vanishes without a trace. As the founders of these remain anonymous, there’s little chance to determine what went wrong or where all of the money invested in the project actually ended up.
One of the surest signs of a Blue Chip NFT is a company with fully “doxxed” leadership, especially in projects where the leaders unveiled their identities willingly. These are founders putting their names and reputation on the line, so investors can be more assured that the project has its heart in the right place.
Trading Volume & Price
A simpler but no less important metric can be the trading volume and floor price of the NFT collection. If an investor logs into OpenSea to find a high ETH value on each and every portrait in a PFP collection, that’s a good sign that people still think this project brings the heat. NFT markets like OpenSea and others can also display trading volume and history. If a project still has NFTs flying between collectors long after its debut, that’s a strong sign of real value.
Big Name Endorsements
While not as important as other factors, it still means something for a brand to get high-level endorsements. While it was not the foundation of their project’s success, it cannot be denied that having Eminem and Snoop Dogg onboard helped BAYC launch to even higher highs and define themselves as a true leader in the Blue Chip NFT marketplace.
The best current Blue Chip NFT projects
So what are the big names in the NFT space now that would qualify as Blue Chips? We’ve got the breakdown for you here:
Bored Ape Yacht Club (BAYC)
Owned and operated by Yuga Labs, the Bored Ape Yacht Club (along with the Mutant Ape Yacht Club) has quickly dominated the conversation around NFTs. With their own metaverse, Otherside, and a healthy string of high-profile collectors, it’s arguable that Apes have become the face of NFTs in general. While there’s no sure bet, and the floor price is high, the BAYC are undeniably Blue Chip NFTs.
One of the earliest NFT collections to go mainstream, CryptoPunks is still going strong. Now owned by Yuga Labs too, this PFP collection on the Ethereum blockchain is always expanding its cultural reach.
Debuted in 2021, Cool Cats is another rising star on the Ethereum blockchain, with a high daily trading volume that promises more success to come.
The product of well-known artist Scott Martin, Doodles have a high artistic quality – and a floor price to match. The many variants of this PFP collection keep people interested.
Backed by the famous entrepreneur Gary Vaynerchuk, this NFT collection holds ambitions as big as its founder. By hosting large social events and creating long-term plans, Veefriends makes its Blue Chip intentions known.
World of Women
A unique project focusing on art that showcases diverse women, while supporting good social causes, World of Women stands out from the crowd and has quickly earned Blue Chip recognition.
With incredible art and an underdog story fueling its rise, Azuki is one of the newest members of the Blue Chip NFT club. While the doxxing of its leadership caused some problems, Azuki’s subsequent resilience ultimately proves just how important leadership transparency is for an NFT community.
Created by the rising sneaker brand and digital fashion maverick RTFKT, the CloneX collection boasts a streetwear-sci-fi aesthetic and an engaging roadmap that has left holders salivating for more.
Blue Chips on the horizon
Along with the current crop of Blue Chip NFTs, it's key to remember that today’s launch could be tomorrow’s behemoth. Many of the same factors that contribute to more mature projects’ success can just as easily contribute to a new project’s rise. As you muse on the future of the Blue Chip NFT market, check out these potential future stars:
From the founders of CryptoPunks, the Meebits 3D character models have proven just as viral and expressive as that first project.
With a high trading volume that puts CyberKongz in the league of the biggest projects, these cool cyberpunk characters can also function as avatars in metaverse events.
Crafted by the world-famous artist Damien Hirst, Currency fuses the art world with NFT collections. The value of these pieces quickly sky-rocketed at launch.
Find the next Blue Chip Project
New projects are launching every day. Given the right team, the right idea, and the right timing, the next big blue chip NFT collection could be finding its footing at any moment. The best way to find the next blue chip is to learn how to identify NFT projects with higher chances of success, and of course, keep your eyes on the icy charts!