As the cryptocurrency market continues to evolve, the value of NFTs does, too. Non-fungible tokens come from the same blockchain like Bitcoin, Ethereum, and other popular cryptocurrencies. As long as crypto remains valuable, NFTs should continue to be collectible items, too.
What Makes an NFT Collectibles Valuable?
NFTs are valuable because they actually have real-world applications. The most valuable ones are rare, useful, and tangible. Assessing the value of an NFT can be challenging because it can mean different things to different people.
When you are ready to assess the value of an NFT, the best places to go are NFT marketplaces where artists and collectors gather to buy, sell, and trade them every day.
Digital Assets and Non-Fungible Tokens
The type of NFT matters when assessing the value. Digital assets like the first Tweet from Jack Dorsey or one of the 5,000 drawings from Beeple tend to be more valuable than a work of art from an unknown digital artist. Collectibles in the real world have varying value, and so do the collectibles from video games or from sites like OpenSea.
Since NFTs are relatively new collectibles, determining the value is tough. Sites like Christie’s have found value in digital assets like NBA Top Shot trading cards or one-of-a-kind pieces from the digital artist Beeple by auctioning them to collectors with Ethereum Blockchain to spend.
As crypto art grows in popularity, the market of potential collectors will grow. This should affect the valuation of different digital artwork like GIFs, Tweets from Jack Dorsey, and other NFT art.
Some of the rarest items on the NFT marketplace are pieces like Jack Dorsey’s first Tweet and the 5,000 drawings from the artist Beeple. Dorsey’s first Tweet is just as rare as a piece of tangible art like the Mona Lisa. People might make copies, but they aren’t as valuable as the certified original.
When auction houses sell pieces like the CryptoKitties, Everydays or the original works from Beeple, they only sell them with their original digital tokens that owners can store in their digital wallets.
Some NFTs are useful in the digital world. Items that help users in video games increase in value quickly, because users need them in their favorite digital ecosystems. For example, digital collectibles like MLB cards, tickets to NFT events, and digital real estate tend to be more valuable than random items unknown users find through minting.
If you can use your digital item in the real world or in the digital world, it becomes more valuable. NFT works of art that give owners personal satisfaction, like Nyan Cat, become more valuable than items that do not have much use or likability.
Tickets to an NFT event tend to be valuable especially when those events include celebrity speeches and freebies. NFTs attached to pointless items tend not to have much tangibility.
Unique tokens like digital sneakers or Superrare NFTs can also quickly increase in value, especially if the items become rare because artists stop releasing new pieces of art into the NFT market.
Crypto assets continue to change in value, so NFTs do, too. Just like baseball cards in the real world, collectibles like NFTs are only worth what people are willing to pay. The person who owns the NFT should find value in the joy of owning the digital item. Hopefully, someone else will want to eventually own the same item and give the original buyer a return on their investment.
Since digital art like NFT tokens is very new, the long-term valuation is difficult to assess.