How to Use Analytics to Find Profitable NFT Drops
Learn to leverage social stats and other metrics to determine the potential worth of an upcoming NFT project.
Most NFT marketplaces feature a drop calendar for upcoming NFTs. These are only limited to NFTs dropping on their platform. But an NFT aggregator and analytics tool not only show more NFT drops from various marketplaces. It reveals more information about them.
However, narrowing these NFT drops to potentially profitable ones often feels like gambling. But with some background checks, you can research an NFT project's credibility and determine if it's an investment you want to join. Easier said. It requires some tactics.
This blog will explain how to leverage social stats to research an NFT project pre-mint.
Ensure you do your research before investing in any NFT or crypto project. The information in this article is only informational and for tutorial purposes. Any information by Moonly isn't financial advice to invest in a cryptocurrency or NFT. Moonly is not responsible for any loss incurred while investing in any crypto. DYOR.
Find Upcoming NFT Projects
You'll need to narrow down a list of upcoming NFT projects to get the most promising ones. We'll use some NFT drops as examples in this article—to show how to analyze your way down.
There are many NFT analytics tools out there. But we'll use the Moonly analytics tool to demonstrate our examples.
To begin, log on to the Moonly website. The Moonly landing page is subdivided into different sections. The featured sections include Top floor movers, Sales of the day, Bottom floor movers, and Top volume changes.
Scrolling down, you'll see the Upcoming NFT Drops section. Ensure you click the Upcoming button to filter the listing to only upcoming drops.
Some of these listings are free while others come at a price, depending on the creator. The listing features the Price, Supply, and Mint Date for each NFT.
You'll also see the social overview of each NFT right below its name. For instance, as shown above, SportX Metaverse mints on May 23, 2023, has a total supply of 3,444 with zero Discord members and 7.2k Twitter followers.
Moonly is also multichain. To view NFTs for a specific chain instead, hover over Upcoming NFTs towards the top left. Select any of the listed chains to narrow the listing to your selection.
Scroll through the upcoming listings. Peruse their social stats and mint date (Twitter followers and Discord members). Once you find an NFT project that catches your attention, click it to view more activities.
How to Use the Social Stats to Find Profitable NFT Projects
There are many upcoming NFT projects. Seeing one that catches your interest might not mean you'll ultimately mint it. However, like any investor, there are ways to see if a project is worth your money.
For this article only, we'll use unrevealed NFTs on Moonly to demonstrate how to use statistics to find the top upcoming mints. I've based my selection on the social numbers (number of Twitter followers and Discord members).
While we've based our selection on the social stats in this article, it doesn't in any way imply that the social stats is the only way to determine the potential worth of an NFT or crypto project. There are many other metrics. A project with low social followers but with verifiable social engagement, an intentional and sustainable roadmap, a verifiable web presence, and a comprehensive and transparent organizational structure has more potential than one with thousands of followers without any of these qualities.
Here's an overview of the chosen NFT page on Moonly:
As shown, the selected NFT is a 2.5k-supply Solana NFT with 9k Twitter followers and 5.3k Discord members, minting on May 26, 2023, for 3 Sol (shown on the right). According to the stat, its Twitter followers have grown by 0.19%, while its Discord server has increased by 0.49% in the last 24 hours. Don't flip over the number of Alphas, too. Twenty-two Alphas is an impressive number.
There's more. The percentage of engagements on its tweets is also fair at 0.12%. The 16% Ratio metric defines the proportion of Discord members currently online. This is 852 of 5.3k Discord members, according to the Online section.
Looking to the left (below the NFT's name), you'll see the NFT's website link, the Discord link, and the Twitter handle. All these tell us three things; the target project has a verifiable website, an active Discord server, and a Twitter account.
Despite the incredible social stats, clicking the website link for my chosen NFT turned me off, as it had no content as of writing. It was almost blank!
This neither invalidates nor marks the project as a potential rug, though. And while they might be building a website at the time, I expected some transparent statements on the website with the progress information. But a blank web page? That's a red flag!
I sampled another NFT. This time, it's a 9,999 PFP collection minting on September 22, 2023, for 3 Sol. According to the stats, it had 2.2k Twitter followers and 1.9k Discord members at the time of writing.
Despite its fewer followers when compared to the previously sampled NFT, its 24-hour tweet engagement stood at 0.4%. This is 0.28% higher than the previous NFT. This higher engagement proportion denotes a more active community.
For what it's worth, this is better than an NFT with thousands of followers but with low engagements. Although its Discord online member ratio was lower at 1.5%, this is typical of projects at their early stage.
The project's website appears professional, with appropriate call-to-actions, mission statement, goal, whitepaper, and other information. So it's easy for anyone to know where they're coming from and where they're going.
I still trust this type of NFT to one with more followers but without a working website that describes its goals.
We've censored the NFTs sampled in this article to avoid promoting a particular NFT project over another. As mentioned, they're only for tutorial purposes to show how to leverage social stats to determine a project's potential worth.
When you scroll down a project's page on Moonly, you'll see a chart showing the social trends within a specific period. The default selection for this visualization is seven days. You can select between one month (1M) or three months (3M). Or you can click All to view the data for all time.
Ensure the chart selection is on Social stats. The Market stats section is always blank for upcoming projects since they're not yet in the market.
Your research doesn't stop there. If a project interests you, you want to join its Discord channel to see what they're discussing. You should also follow their Twitter handle to see if their tweets align with their purpose. This is one of the ways to spot fake NFTs.
Be Sure You Want to Invest in That NFT
Investing in any crypto project requires a deliberate decision. And the truth is you might lose money in the process. No one can certainly predict the future of any project. But some trends point to how they'll likely turn out.
I've shown you some tips for picking an upcoming NFT in this blog. But you might research its nooks and crannies as done here and still lose out. So ensure you want to risk your funds before investing in any NFT.
Remember, research heavily until you're convinced. Â