What is ‘Blue Chip’?

In conventional finance, a blue-chip stock is one that has stood the test of time and performed excellently over a considerable time period. Blue-chip stocks have successfully endured downturns and bearish markets, and have proven productive and reliable. 

Examples of blue-chip stocks are Amazon, Facebook, Coca-Cola, Costco, Apple, and Tesla. 

How to Determine a Blue Chip Cryptocurrency?

digital images and nimbers depicting Blue Chip Cryptocurrency

Since the crypto industry is highly unique and innovative, identifying blue-chip cryptocurrencies can be a lot more complex. 

One way that we can determine blue chip cryptocurrency assets is through their market capitalization. Another way to determine blue-chip digital currencies is through their spot price; this, however, is a lot less interesting and relevant for those looking to HODL since spot-price is not a measure of a currency’s longevity. Other factors that can be used to identify blue chip crypto assets are the founding team members, the utility and the use case of the asset, or the history behind the project. These factors should be combined and used as due diligence before investing, it should also be noted that. many projects in the crypto space sell a promise that is hyped by marketing and for this reason, every crypto asset should be thoroughly examined by any would-be investor of the project.

Below are the top ten cryptocurrencies in terms of market capitalization in US$:

What is a ‘Blue-Chip NFT?

Just like a blue-chip stock, a blue-chip NFT is one that is established, fairly well-known, and stable. Blue-chip NFTs are expected to have a promising future, making them good long-term investment choices. In addition, a blue-chip NFT is also seen as a safer bet compared to other NFTs since it has a proven track record of both value and growth. 

Examples of blue-chip NFTs are:

  • Bored Ape Yacht Club
  • Crypto Punks
  • VeeFriends
  • Cool Cats

The key difference between blue-chip NFTs and conventional blue-chip stock is that NFTs have been only around for a very short while. For example, out of the four blue-chip NFTs mentioned above, the oldest is Crypto Punks, which has only been around since 2017.

For this reason, NFT investments are made largely on the basis of forecasts and predictions. 

Factors that Make a Blue-Chip NFT:

  1. The Brand: Just like conventional blue-chip stocks, a blue-chip NFT should be popular and well-known throughout the NFT community. A blue-chip NFT brand should have a positive and widespread reputation, as this is what makes it a good investment for the long-term. 
  2. The reputation of the creator(s): A strong brand is only possible when it is being backed by a strong team and leader. In other words, if the people behind the brand and reputed, there is a good chance that the NFT will go on to attain a blue-chip status. 
  3. Brand Execution: The above two factors will highly influence how the brand is executed. A strong brand driven by a powerful brand is likely to be executed in the right manner. Many NFTs will have massive plans and projects for the future, but the execution and the ability to deliver on these promises is what will separate a blue-chip NFT from an average one. 

Final Word:

To sum up, market capitalization, brand reputation, future plans and execution, and the team behind the brand, are some of the main factors that determine whether a crypto or an NFT is – or will go on to become – ‘blue-chip’. 

To learn more about cryptocurrencies and NFTs, please feel free to check out some of the other blogs on our website.