WHAT DETERMINES THE VALUE OF AN NFT, AND WHY ARE SOME WORTH MILLIONS?
WHAT DETERMINES THE VALUE OF AN NFT, AND WHY ARE SOME WORTH MILLIONS?
You’ve probably heard about the NFT space boom unless you’ve been living in a cave for the past nine months. The value of CryptoPunks (which were given away for free to everybody with an ETH wallet in 2017) has risen to over USD 7 million. Earlier this year, Christie’s auctioned the most valuable NFT ever for about USD 70 million.
With NFT sales exceeding $1.25 billion in Q2 2021, it’s safe to say that this asset class is here to stay. It’s also clear that, even though there’s a lot of money to be earned in the NFT industry, it’s not always clear what distinguishes one NFT from another.
While the millions-of-dollar NFTs may have sparked your attention, the average price of an NFT is only USD 120. Let’s take a look at some of the crucial areas where NFT’s perceived value might be discovered while shopping.
