The coming Solana NFT bull run (get ready)

So i stand before you today in the Middle of another nft bull run where Some top collections have been on an Absolute tear especially on ethereum and Yet i want to tell you that it’s solana Nfts that might be about to have their Best run ever basically in a matter of a Few months solana went from you know ps1 Graphics to something a lot more Appealing and the seeds are now planted For the next big collections to emerge So in this video we’re gonna get into You know the recent developments on Solana and why they’re such a big deal I’ll talk about some strategies for how To approach the market today and then I’ll finish off with a couple of Collections that i recently bought into Now we’ve known for a while that solana Has had potential right and even though Ethereum has been the home for nfts and It still takes up a large percentage of The volume there are enough flaws in That market that have opened the way for Other blockchains to thrive for one the Gas fees that we have on ethereum are Still way too expensive for the average User and even though this might get Fixed with l2s like arbitrum and Immutable x the progress is still way Too slow to meet the demand that we have Today and this problem is only going to Become more obvious in 2022 when we’re Gonna get our first huge waves of

Non-crypto native people buying up nfts Plus as a result of these transaction Fees you have ethereum games not being Able to adopt you know most type of On-chain mechanics because every time There’s an interaction you have to pay Gas fees again and then beyond the gas Fees we also have pressure building Around environmental concerns and this Mainly comes from ethereum’s proof of Work model and as a result creators are Getting roasted by their fans whenever They drop an nft and so you would think That an alternate chain like solana or Tezos would come in with their super low Transaction fees and their carbon Neutral footprint and just dominate the Market right but we found that even Though this makes sense in theory up Until now solana just wasn’t ready for The prime time you know one thing is Being early to a party and another thing Is being so early that the hosts haven’t Even put out the snacks yet and you’re Just standing there in the corner Awkwardly while they set everything up No one wants to be that guy but that’s Sort of what happened when those d-gen Pioneers came to the shores of solano Back in august and september they found That well there was a lot of room for Improvement for one thing there wasn’t a Polished marketplace like openc right And you just had these garage quality

Websites that fragmented the volume into A bunch of tiny pieces there were also No real analytics tools and so it was Hard enough trying to find out which Projects were coming out but then it was Also difficult to you know look into the Floor prices or the smart money trades Or the wallet distribution and then There were the nfts themselves which Weren’t the best okay no for the most Part they kind of actually sucked like Sure you had some top collections like Solana monkey business and ori project But the vast majority were cash grabs And solana soon got a reputation for Being a place where you would find low Effort nfts or just straight up copycats And this was because it takes a while For top creators to warm up to something New like solana and you know it’s Already risky launching an nft in the First place and so most would just stick To ethereum where they already had the Proven volume instead of gambling on a Relatively new chain but there was still Demand on solana and that demand did get Filled but mostly by scammers you know i Did a video back in september where i Looked into over 120 upcoming solana Nfts and found that from that list of 120 projects only a handful even had Creators that were willing to put their Name behind the nft the other 90 were Made by a non-developers and in many

Cases these were the same teams that Would you know rug pull a collection as Soon as it meant it out and then just a Few days later come out with another one Now fast forward to today and we see a Very different picture and so let’s Tackle these one by one to see why first We have magic eden and this is a Marketplace that you know came out a few Months ago but which recently took the Clear front runner position on solana Which was a spot that was previously Held by salon art and from what i’ve Seen most people agree that magic eden Is you know a pretty good platform and a Big improvement on what we had before it And if we look at the numbers we can see That there’s a clear preference right so Magic eden already has 77 market share And that’s still down from open seas 99 Share on ethereum but still pretty high And even though you could argue that Having many smaller marketplaces is Better from a decentralization Standpoint the clear benefit of having a Front runner like open c or magic eden Is that you’re able to you know Aggregate volume a lot better and that Makes nfts more liquid which in turn Makes them less risky the second big Change is that we’re finally getting a Mobile app for phantom which is the most Popular wallet on solana phantom is Basically the equivalent to metamask

From ethereum which has had a mobile app For some time now and even though i Personally don’t use the mobile app i Know many people do and this is a big Plus for making solana more newbie Friendly remember part of the bull Thesis here is that you can capture a Lot of non-crypto native nft collectors In the coming months and this goes a Long way to making things more Frictionless okay the third big change Is that the data analytics scene on Solana is getting much better and Closing the gap on ethereum and so let’s Quickly run through some of these pretty Awesome tools that i’ve been using so First off you have soul analysis which I’ve used on this channel before and It’s really the easiest way to get a Macro view on the entire space and it Gives you an update on over 200 Individual collections in one chart We’ve also used how rare dot is on this Channel before and this is maybe the Best way to find upcoming solana nfts Although just be aware that it’s Unfiltered so you’re gonna get a lot of Crappy project mixed in with the good Ones so these two have been improving But we also have some newer tools that I’m finding very useful including soul Scan which is maybe the closest thing I’ve found to a live mint scanner on Solana meaning that their focus is on

Showing you what people are buying in This very moment at the individual trade Level and this could include completely New collections and sometimes even Stealth drops and then you have soul Radar which i like to use mainly because It has a twitter tracker so basically You can rank by twitter growth and get a Good feel for which ones are blowing up On social media you can also click in And look at their volume their floor Price listed count and even how many Discord members they have if you want to See more tools i would recommend giving A follow to mert here this is the Account that put me on to some of these In the first place and then one last big Factor that has been changing for solana And maybe the most important thing we’ve Spoken about today is the arrival of Better creators and we’ll get to that in A minute but first let’s talk about the Strategies that i’ve been taking when it Comes to solana because i think it’s Different than what i’m seeing most People do you see what most people are Doing is short-term flipping and you Know we see this on ethereum as well but Because of the gas fees it’s a lot Harder to do and let me show you an Example so let’s assume you’re on Ethereum and you bought an nft for a Thousand bucks and then you flipped it For 1200 which gives you a juicy 200 in

Gross profit and that’s not easy to do But you know you’re pretty good but hold On let’s also take into account the Costs involved in this transaction first You have to pay gas to purchase the Initial nft and this can variable let’s Say it costs 125 then you have to pay Gas again when you list the nft and this Is going to be a lower fee but let’s put It at 25 beyond the gas you also have to Pay royalty to the creator and this can Be as high as 10 percent but we’ll put It at 5 or 60 bucks and then finally There’s a platform fee of 2.5 percent That you’re paying to open c so that’s Another 30 so all in total costs come Out to 240 bucks which gets you to a net Loss of 40 on this trade now let’s take A look at this same trade on solana and Here you have the same gross profit but We can remove the gas fees because You’ll be paying less than a penny we Can keep the same creator fee but now we Have magic eden which has a 2 fee Instead of 2.5 percent on open c so at The end of the day you end up making a Net profit of 116 bucks versus ethereum Where you actually lost money because of This math people on ethereum take a more Buy and hold strategy and they’re aiming Really for you know more serious Long-term appreciation and as a result They’re spending fewer transactions but Willing to spend more money on a high

Quality nft on solana on the other hand People have a much shorter holding Period they’re just trying to get in and Out quickly and you know they do way More transactions but at a lower price Point we can see that here where the Average transaction on openc hovers Around 1500 bucks while on magic eden It’s less than a hundred dollars but at The same time magic eden users transact About six times per day on average Versus two times per day on openc so Because of that i think there are fewer People concentrating in the mid-tier Range which you know we can define as The 5 to 30 soul range and so i think You can find more undervalued nfts in This tier compared to ethereum on top of That supply counts are much lower on Solana and so buying you know one nft in A collection of 2000 gets you a much Larger percentage of the brand compared To a collection of 10 000 on ethereum Okay so to sum up the strategy i think Solana nfts are trading at a discount to Ethereum and then within solana you have Mid-tier collections that are building Something long-term definitely more Long-term than the average solana Collector’s holding period and those are Getting even less attention and because Of all the factors that we’ve already Spoken about so the better data magic Eden you know phantom mobile wallet all

Of this is going to attract even more Smart money than they’ve had in the past And i think those mid-tier collections Benefit the most out of that movement Not to mention the fact that openc is Almost definitely working on an Integration with solana and i wouldn’t Be surprised if that just gets randomly Announced in the coming months we’re Already seeing a lot of eth whales that Have never mentioned solana in the past Now start tweeting and making comments Around solana nfts and i’m not gonna Name any names but this has been a clear Trend for some weeks now now personally I’m gonna be skipping a lot of mints and Lower priced collections because like i Said that’s where the majority of Traders are focusing and this means that You know i won’t always be early to a Collection and that’s okay because most Of my big wins have come from secondary Trades that happen days or even weeks After a mint the name of the game is not To be you know necessarily early but Instead it’s to find miss price nfts at Any tier that you can afford now with That said let’s talk about a couple of Nfts that i recently bought into and i’m Going to say right out the gate that None of these are slam dunk you know No-brainers but they do check off a lot Of the boxes that i look for and the Prices have been reasonable enough to

Jump in so the first project i want to Highlight is catalina whale mixers and This is the collection of 5 500 whales That are trading at a floor of about 10th hole now based off the art alone You know these are fun but they’re Probably not that much better than many Other profile pick collections that you Might have seen but here’s the thing i’m Not buying these whales because you know I want a whale profile pic these are Actually acting as entry points into a Launch pad and we’ve spoken about launch Pads before but the idea is that you Know you get a team that specializes in Business development and they go out and They strike deals with other nft Creators to bring you know white lists And giveaways and free nfts basically Value back to their holders now that’s Already more interesting to me than the Typical you know nft roadmap but on top Of that this is also actually a pretty Legit team a couple of them have Experience with running funds being Managers in the entertainment industry And then this guy here arshad was even The former head of product design at the Nfl if you want a deep dive on what They’re planning i recommend this Interview they did in november on the Thug birds podcast so i would describe This one as really a bet on the team and There’s a scenario where they built the

First really successful launch pad on Solana and in that case there could be a Lot of value that you get from you know The entities that they partner with on Top of the appreciation of the whales Themselves okay the second project i Want to talk about is neon heroes which Is also trading at about nine to ten Soul so this one is a game and if you’re Bullish on solana you have to understand That gaming is gonna play a huge role Here so solana launched another 150 Million dollar fund in december Specifically for blockchain games and we Recently saw the launch of fractal which Is a slick marketplace made by the Co-founder of twitch that is Specifically designed for solana games Now in terms of neon heroes this is a 3d Game being developed on the unity engine And these initial nfts are gonna act as Mint passes that primarily get you three Main benefits so let’s get into what Those three are first you’ll be able to Stake these nfts in what they call Expeditions which is basically just Choosing a specified number of days for Staking and the longer you leave it the Bigger the multiplier gets what you’re Receiving are tokens called catnip and These won’t be tradable until the game Actually comes out in late 2022 but These will be used for all in-game Things like minting new nfts leveling up

Your gear purchasing skins etc the Second benefit is that you’ll get access To the guardian mech characters and These are actually going to be the Playable characters in the game now There’s gonna be two separate drops with Different classes and you’ll be able to Get one from each drop and so in the end Each genesis token gets you access to Two separate nfts and then the third Benefit is that you’ll get pre-sale Access to their upcoming land sales the Idea with land in this game is that You’ll be able to build marketplaces Shops and things like that and you’ll be Able to set fees for any in-game Purchases that are made through the Stores that you have on your land and so You can actually earn a passive return On your land now this is all fine and Dandy but at the end of the day what You’re doing is investing in a game that Is in its early stages of development And so the reason i say that these are Not slam dunks is because this early on It’s very difficult to predict how Successful the game is going to be but There are a couple of factors that make This game more interesting and first Just a few days ago they fully docked The entire team and it turns out they Already have some you know industry Professionals on board you know people Who have worked at well-known companies

Like ubisoft ea and riot games now i’ll Be honest i did look at these profiles And i didn’t find anybody that was super High up at any of these companies and i Know from experience that you know big Companies like ea they tend to inflate Their job titles and so i wouldn’t Always be convinced when you see you Know vp of whatever at ea or ubisoft but This is still better than 90 of other Blockchain games that are trading at Around the same price or even higher Beyond that they also recently raised 2.5 million dollars from some legit Crypto funds including three arrows Capital now again by itself that doesn’t Necessarily mean that everything is Going to turn out well but it’s a signal That i don’t really ignore because these Funds do have their due diligence and They get more access to the team than The average collector so it’s good to See some of those brand name funds come In as co-signers so in the end these are The type of projects that i like to buy Into knowing full well that the majority Of these are gonna go to zero and you Know this is what these funds are Assuming as well right these are just Way too risky and the genre is way too New to think otherwise but having said That the price was still fairly Reasonable in my opinion and so for me It was worth a bet if you do have some

You know deep alpha on other collections In this 5 to 30 soul range leave it in The comments below and maybe i’ll cover It in a future video that’s it for today Guys thanks for watching and i’ll catch You the next video