What Makes NFTs Valuable? 5 Factors Influencing NFT Prices

Why are NFTs not a? bubble? Most people associate NFTs with JPEG images and shitloads of worthless paintings; however, when you dig deep, NFTs go way beyond that by fixing key gaps in the traditional financial space. How? For example, fractionization was a key hurdle which prevented real-estate from achieving absolute inclusivity. However, when NFTs introduced the concept of fractionization where an asset could be broken into multiple parts and co-owned together, it completely revamped? the $200 trillion illiquid? real -estate sector.?

The? efficacies do not get exhausted with just making multiple assets liquid; rather, they get better by establishing the concept of data sovereignty and ownership of digital in-game items. Hence, it shouldn’t be a surprise when experts claim that the NFT market can clock? $212 billion? by 2030. In this article, we shall deep dive to identify a few key factors which have played a pivotal role in influencing NFT prices that you should keep in mind while approaching an NFT development company.

Top factors That Make NFTs Valuable?

Scarcity?

Rare NFTs are very expensive, for example, CryptoPunks were the first of the NFTs that were ever launched and they are only 10,000 in numbers. Hence, they are scarce, rare and valuable. If you are launching your own NFT, make it rare for value.

Authentic

If the NFT is authentic and verifiable, they will have a very high price. Since NFTs use blockchain technology, everything is public and easily verifiable. Hence, it is easy to validate the NFT and extract the true value of the same while indulging in trade.?

Rarity?

Imagine, what would have been the cost of the declaration of independence, if you had held it in your hands. It would be priceless, undoubtedly? Why priceless? Because, there’s just one original declaration of Independence. Had there been 100 or 1000 declarations of Independence, it wouldn’t have been so expensive. Likewise, when you hear that Jack Dorsey is selling his tweets for a whopping million dollars, because it is rare. So, if you're having an NFT that is seemingly rare, it will be very costly. Nft smart contract development companies can help you create rare NFTs that can help you make good money through their rarity.?

Reputation of the Creator?

Imagine , you as a person creating an NFT vs. Barack Obama created an NFT, on the secondary market, which one shall be selling with ease, your’s or Barack Obama’s. Obviously, the Barack Obama one, Why? Because Barack Obama is a renowned and a well known personality and you might be just a normal person. Hence, even reputation matters when someone like Paris Hilton and Amitabh Bachchan launch their own NFTs Vs. you launching your own. There will be more liquidity and demand for a celebrity backed NFT.?

Cultural NFTs

NFTs that represent cultural significance might have a wider audience and reach in comparison to their counterparts. Why? Because, they are attached to an emotion and hence they sell well. Hence, if you are preparing for a culture backed NFT, it would appeal to a niche audience and sell well in the market.?

Conclusion?

While planning for your NFT, it is utmost necessary that you have kept such things in mind. NFTs are undoubtedly the best inventions but they have their own reputation to satisfy. Not all NFTs are good and not all NFTs are bad, it is exclusively their use-cases and problem solving capabilities that define their demand in the market. NFT development services can help you create and launch your own NFT and explore the world of NFTs in a personal way.??

www.sdnatech.com