The values of the NFT (Non-Fungible Token) collections, which are shown as artworks of our age, can sometimes be measured for thousands and sometimes millions of dollars. The visuals we see on the Internet can find buyers over one million dollars. Sometimes the value of these million dollars of NFTs can decrease. For example, last week, the popular NFT collection Bored Ape Yatch Club fell below 30 ETH to the lowest level of 20 months.
The Bored Ape Yatch Club, which has been shown as one of the best collections in NFT market places for a long time, has experienced such a sharp decline in the base price and has caused the collection of the collection by some critics.
A popular tweet circulating on Twitter claimed that a Bored APE NFT, which was purchased by the famous singer Justin Bieber for $ 1.3 million in January 2022, declined to approximately $ 59,000. What affects the value of NFTs? Under the conditions, the value of NFTs increases or falls?
https://twitter.com/watcherguru/status/1675896054514941952
Ways to appreciate NFTs
NFTs are defined as digital properties with clearly defined owners whose source and operations are stored in a block. Many digital content can find buyers in NFT format, such as a visual, a audio file, a gif, a video game or even a tweet. Unique NFTs cannot be copied and reproduced. Since the records are open to everyone, it can be easily learned to whom the NFT belongs, the sales history and the first time it was printed. As a result, what is real and what is fake can be easily determined, so that the NFT can be attributed to value. The market can value a NFT considering how long the previous parts of the NFT collection have been sold, how long they have been produced, and the producer’s business portfolio, who has been taken by who has been taken.
An example of a Bored Ape Yatch Club NFT.Social status indicator
NFT’s value determines many other elements. Ethereum price is one of the leading ones. In addition, the community to which the NFT belongs is so important. Many NFT also functions for a private community. For example, anyone with a piece from the Bored Ape Yacht Club NFT collection can join a private room in the social media platform Discord, get invitations to various private parties, and even meet celebrities via Snoop, another platform. In short, the NFT you have gives you some privileges. The value of your NFT is closely related to how privileged and powerful the community you are affiliated with.
In addition, the NFT sees an identity task. The NFT you have, just like wearing an expensive watch or wearing suits, can be a sign that shows your social status.Some even say that making a profile picture in social media accounts is the same as participating in an invitation with an expensive bag. These NFTs, which reveal our identity and status in the digital world, also have a value that reflects our real -life identity. The owner of Cryptopunk’s NFT, one of the most important NFT collections, rejected the proposed $ 9.5 million dollars for the property he owns on the grounds that the NFT’s real -life identity reflects more strongly in the virtual world.
https://twitter.com/punk6529/status/1669439346649321479
This NFT called Ringers found buyers for 6.2 million dollars
It is also important whether or not
Rare features can also add value to an NFT. The more a digital property is, the more valuable it can be. For example, according to experts, one of the most valuable parts of the Cryptopunk collection is the Alien series. According to Sara Gherghelas, one of the analysts of the analytical data platform Dappradar, more rare NFTs can be more profitable in the long run. “NFTs, of cultural importance, can maintain and even increase their values despite the overall decrease of the collection, G Ghergalas says. Vehicles like Deep NFT Value can measure an NFT’s rareness.
In addition, the cultural importance of an NFT and its impact in society can affect the price. Oliver Cohen, President of the NFT Analytical Data Vehicle Inspect’s President, says, NFTs associated with influential artists, iconic moments, social or important cultural events can carry higher value due to their historical or artistic importance.
Sources: Coindesk, Decrypt