NFTs have recently sparked a significant storm in the world of technology and finance, as buyers have been observed paying over $69 million for a single NFT at auction houses.
This figure may have made your jaw drop if you’re trying to purchase NFTs for your collection or perhaps you’re looking to do it now before prices increase so you can turn a profit.
There’s no need to be concerned because not all NFT pricing is as lucrative as this and you can get some great bargains on collector digital cards and artwork on internet marketplaces.
You will learn all the details of how much NFTs cost and whether they are really worth those prices in this post.
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How Much Are NFTs? Cost
NFTs can be purchased using a credit card or by sending Ethereum from your cryptocurrency exchange with actual cash.
The price of NFTs will change according to how rare and in demand they are. In actuality, many of the most costly NFTs that have been sold thus far aren’t the things that people would be most eager to get.
The top five most expensive NFTs to date are shown below:
- Twitter CEO & Founder ‘The first Tweet’ – $2.9 Million
Beeple’s ‘Crossroads’ – $6.6 Million
- CryptoPunk #7804 – $7.57 Million
- CryptoPunk #3100 – $7.58 Million
- Beeple’s ‘Everyday: the First 5000 Days’ – $69.3 million
Despite being one of the most famous memes of the decade and being seen by millions of people worldwide, the popular online meme NyanCat, which was established back in 2011, was recently sold as an NFT for $690,000.
The Value Of an NFT Will Probably Never Remain Constant
Most collectors of NFTs anticipate that the value will increase while they keep it, allowing them to resell it for a profit in the future.
NFTs don’t have defined prices, thus the seller is free to set their own or go with what the market will bear. Consider YouTube mogul Logan Paul, who began selling NFT films for up to $20,000 even though it is simple to get them on his YouTube channels for free.
Who is to say that, given the surrounding NFT market, these aren’t worth $20,000 even though they are easily accessible to anyone on his YouTube channel?
The NFT market is sometimes referred to as a playground for the super-wealthy since, in order to be the highest bidder for the rarest or coolest items, you’ll need to have a sizeable sum of cryptocurrency or fiat currency.
Rankings show that one NFT sold on CryptoPunks typically sells for 14.36 ether, or just under $29,000, whereas an NFT sold on Rarible typically sells for 0.00004 ether, or less than $1. Prices, therefore, vary greatly depending on what you’re purchasing and whatever NFT marketplace you choose.
Where Can I Purchase NFTs, Then?
There are so many NFT markets available today, some of them specialize in particular categories while others market and offer a wide range of NFT items. The most well-known NFT marketplaces at the moment are listed below.
Rarible
Although Raible’s NFT marketplace does include other categories including video game accessories, collectibles, and the sale of domain names, it tends to concentrate more on art.
OpenSea
OpenSea touts itself as the eBay of the NFT industry and has a sizable user base of gamers and cryptocurrency aficionados. It has existed since 2017, making it the NFT market with the longest existence.
Nifty Gateway
Artists like Grimes and Steve Aoki use the well-known marketplace Nifty, which is owned by the cryptocurrency exchange Gemini, to release their works.
Video Games
There is more than one site where you may acquire NFTS; as time passes and interest in NFTs grows, NFTs are even being made available for purchase as in-game items in video games.
Unique objects, such as avatars, rare weapons, and one-of-a-kind designs for guns, are available for purchase and sale by players within the game. Because these items are so hard to find there, their worth is very high.
In the realm of video games, having a unique item or weapon gives you a huge advantage. Because there is such a strong demand for these assets, both ardent gamers who want to own them and non-gamers who want to own some rare gaming NFTs can sell them for high prices.
To put things in perspective, in a game called Crypto Kitties (similar to NeoPets), someone spent 600 Ethereum ($1.3 million) on a cat named Dragon.
Do NFTs Merit Their Price?
People are attempting to get on the NFT bandwagon right now in order to buy inexpensively, sell for a profit, and repeat while the hype is still high.
It all depends on what you decide to buy, however, as something may only be worth so much due to the current hype around NFTs and their value may decrease quickly.
We must admit that spending millions to possess the original tweet on Twitter (sent by CEO Jack Dorsey), does not quite measure up to purchasing a very rare piece of Andy Warhol real art to hang in your home, but that is just our view.
Everyone’s definition of worth is unique; some individuals could think that friendship and fond memories are extremely valuable, while others might argue that money and wealth are the most valuable things.
Many people would scoff at those who pay outrageous rates for tiny digital files that are easily viewed online in the digital environment when they look at the NFT marketplace.
It becomes challenging to defend the cost of NFTs when you contrast a priceless work of tangible art with a digital file.
At your house, where only you and your family can see it, a priceless work of art would presumably be more valuable than an NFT of a digital file that the entire world can view by searching online.
Try telling Elon Musk or his wife Grimes that digital art NFTs are worthless after they have amassed millions from the sale of digital art through NFTS and even a techno-tune NFT that is even about NFTs. It’s purely subjective.
The Rare NFTs
On the other hand, there are some extremely rare NFTs that have been made by a variety of artists and musicians specifically to be sold on the NFT marketplace, such as an unheard song or a unique video.
The original copy would therefore be in the owner’s possession. As the buyer is granted restricted permission to use, copy, and display the material as they see fit, they are free to share it online for the rest of the world to view.
For musicians, artists, and other creators, this is a significant development since it enables them to validate their ownership of a piece of digital content and correctly monetize it for maximum profit sharing.
Given that their music can be downloaded for free illegally from websites and that music streaming services like Spotify only pay a small percentage per million streams—of which the recording studio will take a cut from the artist anyway—many musicians don’t always make as much money as the general public thinks they do.
The Commission
Purchasing NFTs might be deemed worthwhile and extremely profitable if you strike it fortunate if you’re not especially interested in retaining them for personal use or pride and are instead waiting to sell them for a higher price to generate profits.
Because of this, many individuals are attempting to immediately join the bandwagon so they may purchase fewer NFTs at a lower price that will eventually rise significantly as the demand for NFTs increases.
Even NFTs that the majority of people seem to find unpleasant can become popular and be sold for a significant profit.
In addition, NFTs have a feature that allows you to receive a percentage each time the NFT is sold or changes hands after you’ve sold it.
This means that even if you made money when you sold it, if the price keeps rising each time it’s sold, you might end up making more money in commission than you did when you first sold it.
What Happens as Technology Develops?
When it comes to NFTs and how much they are worth, there may be some uncertainty about how their value will change over time.
Every year, modern technology advances swiftly thanks to advancements in Intelligence, smartphone technology, image quality, and pixels, among other things.
If your digital file’s file format becomes incompatible with the newest computer hardware in ten years and cannot be opened on that computer system, what will happen to your NFT? Will the NFT still hold value if it can only be accessed by devices that are available in ten years or that can only be opened on those devices?
Meticulously caring for physical art to maintain its excellence can cause it to retain its value over time and even increase in value.
This is why paintings are kept in air-controlled glass cases or crates, preserving their quality and ability to retain their value over time. The development of technology, which individuals have little to no influence over, may eventually render NFTs obsolete and essential.
Are They Valuable Enough to Warrant Theft?
The fact that NFTs are difficult to steal, or at least get away with stealing, is a plus. You will receive a digital file of the original copy when you purchase an NFT.
The artist digitally signs this file to serve as proof of the NFT’s authenticity and the date of purchase.
The transaction will be recorded in the alluring blockchain, which keeps track of when it happened, so there will be proof that you have the proper ownership of it. This ought to make it simpler for the appropriate authorities to find it.
If the hacker attempts to sell the stolen digital file, the blockchain provides proof that they are not the rightful owner once the victim reports the theft and the digital file is taken.
Hackers have, however, occasionally gained access to users’ Nifty Gateway accounts and taken NFTs from there or bought them at a reduced price.
For one thing, if you have the ability to be a hacker, then stealing NFTs and getting away with it is much easier as you can remain unobtrusive. Taking paintings from a museum is somewhat different than hacking someone’s account and stealing their NFTs.
For example, many people would assume that the buyer of Beeple’s every day: The First 5000 Days, Vignesh Sundaresan or MetaKovan, who paid $69.3 million for the NFT artwork, would now be a victim or be prone to theft given that he now owns something so profitable and in demand.
But, anyone with the extra cash to invest in a single piece of art will have the proper cybersecurity and reinforcement to keep his buy safe from thieves and hackers.
read also: Making NFT Art: A Step-by-Step Guide
People Also Ask
Q: What is the average cost of an NFT?
NFTs can have a wide variation in cost, with some selling for just a few dollars while others fetch millions. While determining an average cost is difficult, it’s safe to say that the most popular NFTs often sell for thousands or even hundreds of thousands of dollars.
Q: Why do some NFTs sell for so much money?
A: The value of an NFT is largely based on its perceived value within the market. Some NFTs are highly sought after due to their rarity, the reputation of the artist or creator, or the level of interest from collectors. Additionally, the hype around NFTs has driven up prices for some pieces.
Q: Are there any hidden costs associated with buying NFTs?
A: When buying an NFT, there may be additional costs such as gas fees (transaction fees on the blockchain network) or platform fees (fees charged by the marketplace where the NFT is purchased). It’s important to factor these costs into the overall cost of the NFT.
Q: Can I invest in NFTs?
While viewing NFTs as investments, it’s important to remember that market trends can cause their value to fluctuate and be volatile. Additionally, investing in NFTs should be approached with caution, as there is no guarantee of returns.
Q: Is it possible to buy NFTs with cryptocurrency?
A: Yes, most NFT marketplaces accept payment in cryptocurrency such as Bitcoin or Ethereum. However, it’s important to ensure that you have the necessary cryptocurrency and understand the process for purchasing NFTs with it.
