As we know, non-fungible tokens are associated with digital images. Meanwhile, music, sports collectibles, and video games have joined this thread over the last year. Possessing NFT means exclusive ownership and access to unique features and facilities.
Now NFT digital art collections create demand that allows many digital artists to earn on their creations. Virtual art collectors buy valuable objects not just for their own pleasure but also to sell it later for a higher price.
Having learnt the basics of NFTs and their functionality let’s move on to figuring out their price and value. How is the price determined? That’s the question that comes to mind to anyone who has never met NFTs and other blockchain technologies before.
First of all, the value of an NFT is proportional to the type of asset it represents on the blockchain. If the asset has some physical equivalence, e.g. a tangible property, such as a residential property, its NFT value may be partially derived from its real equivalence. But what if the asset is the digital content and there is no physical representation of it: then its price is absolutely speculative, and it depends on the market situation with demand and supply.
Let’s take NFT as an artwork, where the value of each piece depends on market environment and how many potential owners there are for it. This basically means that the price for the artwork can be set at any level the seller wishes. There are some popular NFT collections on the market with high prices. Let’s have a look at them.
The real legend in the NFT market is CryptoPunks. The collection was created in 2017 by the Larva Labs team and did not become extremely popular at that time. At first, some non-fungible tokens from this project were distributed for free. But the popularity of this collection grew with the popularity of NFTs in general. Now the most expensive CryptoPunks image costs $11.75 million, and the total trading volume of the whole collection exceeds $2 billion.
There are 10,000 8-bit images of eccentric characters in this collection. All CryptoPunks have more or less similar characteristics, so the rarer the attribute, the more expensive the piece of art. The basics of the pictures were generative art – each character was generated from different attributes taken from people, monkeys, aliens, and even zombies.
CryptoPunks have made a great contribution to contemporary digital art despite their simple structure. They have served as an inspiration for many digital artists and the development of other NFT projects.
Another very popular and successful NFT project is Bored Ape Yacht Club. Even celebrities such as Jimmy Fallon, Post Malone, Eminem, and Justin Bieber bought their own monkey.
4 anonymous developers with weird usernames created this collection. There are 10,000 monkeys with unique characteristics among which are clothes, hats, and facial expressions in BAYC.
Bored Ape Yacht Club provides several certain privileges to its token holders such as:
Thus, you can see the reason for BAYC's popularity: it’s not only a good investment, but also a ticket to a closed exclusive club and display of social status.
The praise should also go to the marketers and PR-specialists who worked on this project. A bunch of newsworthy events and references to BAYC flashed in the media during the fourth quarter which made the collection even more popular.
Decenerland (DCL) is another yet popular project with millions of users. It is a virtual world based on the blockchain. Users can choose their own avatars and surf the Metaverse.
You can buy a piece of land in Decentraland and build whatever you like there. When you buy your own land in DCL, you buy NFT that you can use to build houses, estates, exhibition centers, etc. on it or trade it outside DCL on any market.
There is no free land left in DCL: it is already occupied and is rapidly increasing in value. Some people from such Asian countries as South Korea, Thailand, etc. are already planning what they want to do with the land they own. This land can generate income for you through the following options: rental income, income from sales, promotion of your products and other NFTs to visitors who come to your building on your land. DCL land can be found on Opensea market. As you see this is one of the best NFT and token projects to buy for 2022.
The Doodles Collection consists of 10,000 images created by Burnt Toast. Each token is generated from 100 possible traits, that include face shape, hair, hats, body, and background.
The Doodles project is a DAO which means that NFT holders can join and vote on the future development of the project.
Initially the starter price of the NFT was 0.123 ETH. The tokens price in the secondary market increased 15 times during the first week of the sale. When the sale finished, the project creators transferred 420 ETH to the community treasury. The average price of Doodles in January 2022 was 10 ETH.
The most expensive NFTs from this collection were sold during January 2022. A user nicknamed Pranksy bought a rare Doodle golden monkey just 40 minutes after the sales started. There are 71 Doodles in his 30,000 NFTs collection.
Axie Infinity is a NFT game. This game has over 2 billion in trading volume, according to DappRadar. Axie recently switched to the Ronin sidechain solution and generated over $776M in revenue in the third quarter.
The characters in the game are axie. These creatures are used to duel other players, fight enemies, and complete daily tasks. You can buy these NFTs, breed (or mint) and sell them. Their value increases with the rarity and in-game advantages. For example, a piece of land in the game was sold for 550 ETH ($2.3 million) in November.
Axie Infinity was created in 2018 and is now leading the gaming sector as a pioneer of the “games to earn” or P2E movement. The trading game became even more popular after the staking program launch that allowed users to own Axie Infinity Shards (AXS) governance tokens.