The article reviews the rise of the NFT phenomenon, particularly focusing on Profile Picture (PFP) projects like Bored Ape Yacht Club (BAYC), which gained popularity during early 2021. It highlights the impact of social media, particularly Twitter, on the liquidity and perceived value of PFP NFTs. Through the examination of various projects and community engagement, the authors establish that social activities significantly influence trading volumes and market dynamics. The work aims to pave the way for future research on the interplay between social media interactions and NFT market conditions.
The NFT phenomenon reached mainstream popularity in 2021 and has continued to gain traction. Projects like BAYCs have exemplified this surge, with high-profile sales.
Our analysis indicates that social community plays a crucial role in ensuring the liquidity and value of PFP projects, highlighting the interconnection between NFTs and social activities.
The centrality of the BAYC community is significant; although it trades less volume than CryptoPunks, its social engagement is superior and influential across the industry.
We aim to establish a foundational understanding for future studies to explore the correlations and causative effects between social media activity and NFT market dynamics.
Collection
[
|
...
]