# NFT market outlook By [rtacolin](https://paragraph.com/@rtacolin) · 2021-10-14 --- In my opinion, NFTs are the most interesting market segments because they attract great interest from people who have no encryption background at all. People outside the encryption community can join cute digital pictures + chain games, which is better than explaining P2P lending and finance. The advantages of system update iterations are much easier. I see four main trends here: on-chain and generative art with historical value, avatar NFT community + companies entering the field, traditional artists and photographers selling personal works, and chain games. From a purely historical perspective, the original crypto natives gave high value to the earliest and most influential works on the chain (such as Punks / ArtBlocks), which was a springboard for others to have a strong interest in NFT at the end of last year. Since Ethereum is the first smart contract platform, from the perspective of traceability and early communities, as the field of encryption grows, the first batch of NFTs on its network will maintain high value. I would like to know whether this trend also applies to other alternative L1 public chains, which have just launched the first batch of NFTs on their platforms. Solana, Fantom, AVAX, Harmony and other projects now have some NFT projects and related NFT markets. Early users who have been using these platforms as their preferred ecosystem may think that the projects on these platforms are quite valuable just like the Ethereum family favors projects such as Punks. Looking at the generated art category, it is obvious that even if the cost of casting increases, Art Blocks is still the dominant platform. Later, popular works like Fidenza will be born, especially with the passage of time, the number of generated artists will increase. Probably the most popular trend is the retail-centric avatar NFT project. We have seen the great success of projects like Bored Ape Yacht Club (BAYC) and how it has attracted the close attention of many sports superstars and other people who have nothing to do with cryptocurrency. We have also seen that many traditional companies try to use NFT for their own marketing. As more and more companies finally see the value of building an online community, the purchase of a Punk by Visa and the launch of a collection of classic characters on Solana by the virtual pet game station Neopets are just the beginning of this trend. In my opinion, NFT collection is by far the best way to guide the user community, because it has a much stronger sense of participation than sending people email lists or getting people to buy products in traditional marketing methods. When you build a community where everyone holds NFTs, it is much easier to assign value to these people, and they will also have more money to invest in the community. We have already seen projects continue to launch their own 10,000 sets of NFTs, and the company will become more creative in how to use NFTs for marketing. However, the main obstacle to this trend is to allow new users to obtain encrypted wallets, which is an easy-to-solve user experience problem. In this upcoming quarter, I think the leading avatar picture (PFP) projects, such as Punks / BAYC / Cool Cats / SMBs, and other projects will continue to perform well, but the most valuable may be to find the dust from the middle echelon projects For the pearls, its works have the opportunity to obtain higher prices in the market repricing. I am most optimistic about Creatures, because I am optimistic about the founder of the project, 21-year-old New York artist Danny Cole, and their tremendous efforts so far to provide a good experience for coin holders. It seems that Cole's long-term vision for the project is just his art An extension of the work into the digital world. From a visual point of view, 0N1 Forces is still my personal favorite. From the Discord channel, the team also plans to build a community through face-to-face activities and airdrops to token holders. Generally speaking, the token performance of these PFP projects actually depends on how these projects create value for token holders and how to involve the community. On the other hand, there are always many scam projects in the NFT field purely to steal money, because people can easily cast anything. Please actively participate in Discord and other social media discussions, it should help you to identify the quality of the project, but it is most prudent, it is best not to act rashly in the first week or so, and carefully observe the development of the project in the market. I really want to see how these Metaverse worlds are constructed and the possible collaborations between teams. Projects that do well in these areas and create a cohesive experience will seize a huge advantage. Currently I only see the planning roadmap, but in the next year or so, we should see which projects can create value in this area. The chain game combines the NFT and the Play-2-Earn ecosystem, and also attracts many new users into the crypto community. The first to successfully reproduce game platform myths such as Roblox (the world’s largest multiplayer online creative game) or Fortnite, and also integrate a team that allows users to make money while playing, will be the most successful so far One of the encrypted DApps. As game developers enter this field, platforms like Solana and AVAX that allow many cheap microtransactions and high throughput should have advantages in this regard. Major funds are providing 9-figure incentive programs for hackathons to attract developers to build, which should accelerate the transition of high-quality software development engineers to the encryption field. The chain game Axie Infinity has achieved great success in the Philippines. It is currently the most profitable altcoin in the field. It is definitely the market leader of Metaverse Trends and should pay close attention to the trend nodes of the industry or the dynamics of mergers and acquisitions. I think that in October, we will see that the tokens of the meta-universe ecosystem will begin to quickly regain their momentum, and the AXS pledge will be a huge catalyst. Parallel NFT card game is another leader in this field, although their game has not yet officially launched. Their works are really well combined with art. So far, they have also done a good job in cultivating communities. The fully subdivided system is very conducive to user participation and competition. In addition, their team has also attracted well-known investors, such as Chad Hurley from Youtube and so on. Other possible early winners include games like Star Atlas and Aurory, but the gameplay is not yet clear, and we can’t really understand the details. I have a list of small-cap projects that I need to do more research on before I can publish my long-term views (ILV / PYR / RAINI / YGG and some other projects). To get the most value from these games, I think you must invest early "before the market is convinced that they will succeed." When people are still full of doubts, you will buy their assets at the best discount. Traditional artists launching their own NFT projects are also an important trend that deserves attention. I have already mentioned Danny Cole's Creatures, but there will be more similar projects. Selling art through paper media is much more difficult than selling NFT, because everything in the latter can be easily accessed digitally. I don't have much prediction about this trend, because I don't know much about traditional art, but I do think that the gimmicks that go against the trend will disappear over time. When people see something they don't understand for the first time, it seems to be their subconscious reaction. --- *Originally published on [rtacolin](https://paragraph.com/@rtacolin/nft-market-outlook)*