Before getting into what NFT scoring is, let’s talk about the main underlying issue at hand here.
It is no doubt that NFTs have become the biggest talking point in the world of technology over the past year or two. Digital asset technology is one of the most groundbreaking, yet simple innovations that bring plenty of functionality on board. The main ideology being NFTs is the exclusivity aspect of it all. People owning a specific NFT will be the sole owners of that digital asset. This means that it will remain a one-to-one, and they can become exclusive owners of that NFT. This brings up the question of self-boasting and letting everyone know how exclusive you are.
Getting early into the right NFT collections and projects might be the fastest way to make yourself a millionaire. However, not knowing how to spot the right projects can get you in deep trouble in the field of NFTs. To make good money, or even to not lose money, you need to possess sound knowledge of NFTs.
So, how can one know which NFT projects are worth spending time and money on? Well, that’s what our topic today is about: NFT scoring. Stick around to find out more about the concept and what it does!
What is NFT Scoring
NFT scoring is, well, exactly what it sounds like. The concept itself is of ranking or scoring, NFTs to know which ones stand out, and which ones should be avoided. This way, consumers have a better method of knowing where to spend their valuables on. All these calculations are made in real-time with the help of multiple smart AI models. These models attempt to gather various statistics from users about NFTs and come out with a ranking system for the projects. This way, you get a cold hard fact-based ranking system about the best performing NFT projects out there.
So, let’s get into what parameters are used in determining the ranking of each NFT collection in NFT scoring, and why they’re useful.
Floor Price
NFT enthusiasts will be well aware of this term, as floor price is an important parameter when buying NFTs. You want to make sure that you get into a project that has an adequate floor price – not too high not too low. NFT scoring gives a real-time result of the floor price of each NFT collection on OpenSea and gathers it in one place. The floor price can give you all the information about how big an NFT project is, and if it’s still beneficial to enter the race or not.
Trades
In the time it took us to publish this piece, we’ve seen the ranking of NFT scoring change multiple times. This is due to the real-time AI putting work to determine fresh rankings. This trades section just counts the number of trades happening within a select time frame. If you select ranking for one month, then you’ll get a list of the projects with the most trades in one month.
Unique Buyers
This is another important aspect to consider when buying NFTs. This is because even if the trade number or volume is high for an NFT project, it could all be from one whale. That’s not good, because it doesn’t show any variation in the buyers. This is another parameter displayed in NFT scoring.
Listings
Again, NFT scoring makes sure to introduce all the important tangibles of NFT purchasing, so you have an idea about what to go for. Listings is another one of those significant functions that tell a lot about an NFT project. If there are more listings within a set period of time, it means more people are engaged in the project.
Whale Owners
This parameter is pretty self-explanatory, as it tells us how many whales are investing in a project. Now, this can be a positive and a negative in multiple regards. It’s good in the sense that it tells the common investor that a rich, probably business-minded investor trusts this project. But, on the other hand, it also means that considering whales own a lot of the NFTs from a project, they might have a strong hold on the volatility of the value of NFTs in that project.
Conclusion
All in all, NFT scoring is a great way to determine whether or not an NFT project is going to be successful or not. Of course, no technology in the world can correctly estimate whether you’ll be able to profit from an investment. However, by making use of AI and getting important facts and figures in place, we can have a pretty close approximation of a project’s success. To read about upcoming NFT projects to look out for, check out this website for some interesting results. We hope this article was helpful to you, and that you might be able to make a better decision in your next NFT purchase via NFT scoring!
