High Conviction Ideas

Welcome to The Metadata. We round up everything you need to know about NFTs.

Today we cover:

• Market updates

• One high conviction trade idea

• What’s happening with Blur on 20 Nov

• Our favourite tweets. Lots of gaming news, its exciting.

Market Update

There we have it. A significant rise in NFT trading volumes that peaked at $28 million daily volume on Saturday, before moderating to around $17 million. This is still 2 - 3X higher than the average volumes over most of this year, a good sign.

Let’s be clear though. This is likely driven by sidelined capital already in crypto that is buying up NFTs in anticipation of a new bull market, rather than fresh capital inflows. Institutions & retail aren’t buying our NFTs, yet. A telling sign of this is the relatively stable number of daily traders, which hasn’t seen a significant increase despite the uptick in prices.

Let’s take a look at how some of our trade ideas from last week are doing:

1. Doodles. From 1.8E to 2.1E floor price (+16%)

2. Mittaria Genesis. From 0.39E to 0.44E (+11%), and as high as 0.6E

3. SHRAP. Token launched at $0.08, now it is at $0.10, with a fully diluted valuation of $300M now

High Conviction Idea #1

Here’s the thesis for acquiring elite-tier NFTs in preparation for an NFT market recovery.

“But most importantly, mindsets have changed.

People are starting to believe that we’re entering a new cycle, perhaps even a glorious bull run. And that means those who see punks as top-tier assets and want to own more (quite a lot of people, IMO) can no longer afford to watch and wait, like they’ve been doing these past months. They need to act, lest they miss the boat. And so they buy. And it sucks in others who see this activity and fear they’ll miss out too.”

Besides the punks, we believe that Chromie Squiggles (9.3E) and Winds of Yawanawa (8.3E) also fall into this category and will accrue cultural value over the long-term.

BLUR: Watch for 20 Nov

For those deeply interested in the NFT space, November 20th is a date to circle in your calendars. This marks the conclusion of Blur Season 2 and the release of 300M+ tokens. Here's a breakdown of scenarios we're anticipating:

• Blur announces a big new product launch (high probability). We think NFT perpetuals are on the table.

• There's speculation that S2 rewards might be distributed over a period rather than in a single tranche to ease sell pressure (low-moderate probability)

• The launch of a Season 3 incentive program appears almost certain

BLUR has had a good run up on token price these weeks, from its low of $0.15 to $0.35 now (+133%). This surge seems to be fueled by a mix of factors: a short squeeze, sidelined yet interested investors and funds jumping into the fray, and (potentially) insider buying from those privy to Blur's upcoming announcement on November 20th.

Take note: all of this is just speculation, we don’t have any inside information. But it’s going to be an exciting week.

Our Favourite Tweets

🐥 sparkc on how to value gaming NFTs

🐥 Best way to onboard new users

🐥 PRIME going for its open beta in December

🐥 Illuvium will go live on Epic Games store on 28 Nov

🐥 Hunter outlines Yuga Lab’s plans

🐥 Roblox, one of the largest metaverses with 65M+ daily active users, is considering NFTs. How bullish it that

🐥 Pixelmon is probably planning a token

🐥 SuperRare rebuilding from grounds up

🐥 Li Jin on the Love → Fame spectrum for social apps

🐥 Matt gives the TL;dr on Jack Butcher’s Checks

🐥 A summary of the state of Treasure / MAGIC today

That's it for today folks. If you want more, follow us on Twitter (@the_metadata). If you were forwarded this newsletter, you can subscribe with just one-click:

Disclaimer: This newsletter is for educational purposes only. None of this is financial or investment advice. It is not a solicitation to buy or sell any assets. Minting and buying NFTs is risky. Please do your own research.