In 2021, we’ve seen explosive NFTs drop left and right. We’ve seen a lot of corporations exploring the possibilities with NFTs. Not only that, many artists and influencers have experienced life-changing moments, thanks to NFTs.
If you don’t know about NFT, you can read more about it below.
Have you purchased any NFT previously? Do you think it is valuable that it will rise in value later? Nobody knows for sure. It probably will, or probably never. However, there are few signs and similarities that some highly valued NFT shares. Let us share it with you.
Even before NFT arrived, arts have been flourishing for ages. Some came in the form of painting, music, literature, architecture, and so much more. Some artists have to struggle and have their uniqueness to separate them from the others. Some of them were known and famous after they passed away.
So, NFT depends on the artists themselves. Whether they are established, known among communities, have great potentials, and other considering factors. The common analogy would be, everyone can draw, but how good? Or unique can they draw? Another analogy is, everyone can sing, but how well can they do it?
If you bought an NFT from a well-known and super famous artist, the chance it will be valuable is higher.
The crypto space is constantly improving and innovating leading to different blockchain protocols. There are new NFT platforms introduced almost weekly with unique and exciting features. So, where do you buy your NFTs also could be a factor to add its value.
For example, currently, OpenSea is the largest NFT marketplace available, at a peak with 30 thousand users and 200 million transacted daily. Other than that, there are marketplaces with respectable reputations and established for decades, such as Christie’s, that have auctioned Beeple’s famous piece ‘Everyday – The First 5000 Days ‘ for $69.3 million.
There are also newer platforms collaborating with artists to release early edition or limited edition NFTs. If the platform became established and strives, having their earliest minted NFT would probably help in increasing your NFT’s value.
The Sense of Ownership
Does your NFT come with anything other than a token that is tracible in a blockchain? Something like perks that will give you a sense of VIP moments or physical items along with it?
Did you know if you own a Bored Ape Yacht Club, you will have the special privileges to join their community of people filled with celebrities as well? Plus, you will also receive future NFT drops.
Several NFT projects come with physical items that will give the owner bragging right, like the famous NFT ‘Doge to The Moon’ by Red Hong Yi. The owner of the NFT also received a copper plate and a silk print of the NFT. It shows strong ownership as the digital image format can be copied, but only the original owner will have the physical items tied to the NFT.
Community support is one of the crucial factors in the NFT market. For example, some NFT is not just art but can be in the form of a game like CryptoKitties, Axie Infinity, and so much more. Imagine having a video game with distinct features and play style with no one to support it.
There are also NFTs in the form of properties in the metaverse or AR/VR realms in different blockchains. For example, a mega-yacht on the Sandbox platform sold for $650,000. It is likely because Sandbox is getting popular and gaining more users daily. As the Sandbox community grows and gets more populated, the yacht’s price might increase in the future.
While there are no absolute ways to know if a price of an NFT will increase, there are factors that we can consider before making any purchases. Some NFTs are collectibles, in-game, arts, music, or perhaps more in personal forms. It is all about the understanding of why we want to buy it. Do you agree?