Morning Minute | PFPs Face Looming Threat
GM!
Take a minute to catch up on the latest in the Web3 space with today's NFT market analysis, top movers, and upcoming mints:
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TylerD's Market Summary
The Doodles wearables launch has the market chattering about the future of PFPs (profile pictures) and customization. But what no one is talking about yet is - how AI-generated avatars will impact the PFP space.
Are the robots coming for our PFPs?
🤖 The Future of PFPs
Doodles have captured the headlines this past week with the launch of Dooplicator utility and their wearables going live late Tuesday night.
Their new Gaia marketplace on Flow has already seen $88,000 in volume as Doodles maxis race to pay $16 for pink digital socks and $88 for virtual fleece jackets.
Those are some steep prices for socks.
Their top end sales also include $1,599 for rainbow puke joggers and $1,500 for some holographic loafers.
The larger conversation taking place with this launch is how consumers will use PFPs in the future. There is growing consensus that the "static" PFPs we have all grown up with over the past 1-2 years may be a thing of the past soon.
Low cost PFPs that can be customized daily seem a superior option for mass adoption than $10k JPEG PFPs.
But the bigger looming threat I see is from AI.
🎶 Wait, Is that CharacterGPT's Music?
There's growing chatter about Alethea AI's new product, CharacterGPT, and its role in potentially disrupting the PFP space.
Users can enter short character descriptions and CharaterGPT will generate an animated avatar in just seconds. The tool uses similar models as ChatGPT and DALLE-2 in creating outputs from natural language inputs.
Generative PFPs are coming.
Why will mainstream users pay even $3 for digital socks and hats when they will be able to create new generative avatars on the daily based on how they're feeling, in just seconds?
I am not sure they will. And I am becoming less confident that the PFPs of this era will remain relevant past 2023 outside of their potential use case as status symbols (for just the cream of the crop).
One thing is certain - we are in for more disruption.
🚚 What is moving in NFTs?
A few notable headlines from yesterday:
- Overall NFT trading volume ticked back up to ~17.5k ETH, for the first day-over-day increase in a week
- Doodles NFTs crash in the wake of the wearables launch, with Doodles at 5.93 ETH (-6%), Dooplicators at 0.37 ETH (-40%) and Genesis Boxes at 0.16 ETH (-27%)
- Checks by Jack Butcher soared 40% to 0.9 ETH as the project cements itself as a primary winner of the open edition / burn-to-redeem meta
- What the Fluff appeared to have rugged its holders after sharing a shitpost (below), then launch spaces, execute a full reveal and the floor rallies 90% to 0.11 ETH as the market likes the reveal
- Des Lucrece shared new details for his "Proceed w/ Caution" project, revealing that phase 2 will include a full blown generative mint for full set holders (full set is holding at ~4.1 ETH on the news)
- Canto NFTs remain scorching hot, with projects like the Canto Eyes surging 400%, Cantenzas up 500%, and CantoGraphs up 50% to 4,500 Canto (~$2,500); all while the $CANTO token jumped 28% on the day to $0.56
🌎 Around Web3
The top story from Crypto yesterday was the market's reation to the FOMC meeting - TLDR, very bullish.
ETH jumped 5.7% to $1670 on the 25 bps hike and Powell guidance, with BTC up 3.1% to $23,800.
A few other crypto and Web3 headlines that caught my eye:
- Coinbase NFT hits "pause," noting that new creator drops are on hold but that it is not (yet) shutting down its NFT marketplace
- Memeland has reduced its royalties from 9% to 3.33% in response to community outrage and a surging OTC market that was bypassing royalties entirely
- Steve Aoki has partnered with Seth Green's Stoopid Buddy Stoodios and Shibuya to create the "first ever community developed stop-motion series," partly directed by Replicant X NFT holders
- Addressable raises $7.5M for its mission to tie crypto wallets to Twitter accounts for better targeted advertising
🚀 NFT Total Volume
- Otherdeeds (1,396 ETH, 1.58 ETH Floor)
- Doodles (1,305 ETH, 5.93 ETH)
- CryptoPunks (1,165 ETH, 64 ETH)
- MAYC (1,150 ETH, 14.1 ETH)
- Sewer Pass (978 ETH, 2.54 ETH)
📈 NFT Floor Price Increase
- what the fluff (90%, 0.11 ETH Floor)
- Checks (40%, 0.9 ETH)
- KillaBears (25%, 3.3 ETH)
- FLUF World (22%, 2.97 ETH)
- LilPudgys (11%, 0.54 ETH)
🗓 Upcoming NFT Mints and Reveals
It is a very slow day for new drops today, with just one on the main docket.
Overall expect some hesitancy as NFT traders wait to see how far ETH may run in this mini-boom coming out of the FOMC meeting.
One place where there is NO hesitancy? Canto. It's the wild west over there. Have fun to those minting but be careful - that market feels ripe for bad actors right now.
- Chrysalism (12:00 p.m. ET)
Enjoy this write-up? Follow along with me on Twitter @tyler_did_it or reach out via email tyler.warner@luckytrader.com.
For all volume and floor price data, see Lucky Trader's Project Rankings page.
For all upcoming mints, see Lucky Trader's Project Schedule page.
