NFT projects can be assessed using both fundamental analysis and technical or data analysis. Fundamental analysis for NFT projects primarily includes:
- The team, advisors, and community
- Utility of the NFTs/value accrual for token holders
- Project's vision
- Aesthetics (highly subjective)
- And more
However, belief and conviction in these qualitative metrics alone are insufficient to ensure profitability as NFTs are highly risky and subject to volatile price swings. Evaluating on-chain data and various quantitative metrics can serve as support for the fundamentals.
On a high level, some of these quantitative metrics, which are available on Nansen's NFT God Mode, are:
- Volume -...