How to evaluate the value of NFTs?
Cryptocurrency markets are continuously shifting. Every so often a new sort of crypto-asset emerges on the scene, causing its values to skyrocket and generating a slew of new uses. Having said that, NFT ushered in a period of explosive growth of digital assets in 2021 and it will grow stronger in 2022.
Some major corporations like Adidas, Nike, Tech Mahindra, Microsoft, Disney, etc, have all dabbled with the world of NFTs. More individuals are learning about and collecting NFTs, but is there a method to evaluate these unique digital assets so you can develop and manage your own NFT collections like a pro? NFTBOOKS will help you answer this question in this article.
As a bridge between the digital and physical worlds, NFTs have proliferated throughout every industry in the decentralized economy. NFTs, as the name suggests, are unique tokens that grant holders immutable ownership rights to specified assets. NFTs have been highly sought-after in the crypto market as an asset class that may be tied to a work of art, a book, or a collectible in a video game.
Factors that evaluate an NFT’s value
1. Security of blockchain
The major value of NFTs is that they are immutable and guaranteed digital assets as long as their underlying blockchain infrastructure remains the same.
Thanks to having the safest smart contract platform in existence today, Ethereum is by far the most significant NFT network, and Ethereum will continue to maintain its dominating position in the foreseeable future.
2. Creator and community
Having said that, the involvement of the community will generate demand. Naturally, the more famous the creators and the bigger size of the community, the higher the value of NFTs. It is a dynamic that applies to every market.
Individuals should ask themselves the following questions before assessing the value of an NFT project:
- Is the creator well-known on social media platforms such as Twitter and Instagram?
- Is it common for them to interact with fans?
- Do you believe creators will be able to expand their brands in the future?
We will see 2 versions of the NFT issued by creators in the NFT ecosystem: unique and large numbers. Because unique NFTs are extremely rare, they are worth more than a vast number of works. NFTBOOKS supports the only version of NFT, so you can guarantee that only one author is circulating in the market.
4. Ownership History
In some circumstances, the value of an NFT is determined by the issuer’s identity and the NFT’s prior stakeholders. NFTs with a high ownership history value are frequently the product of well-known artists or corporations with a strong brand identity.
Applications of NFT in real life are the factors that create value for that NFT. For example, virtual lands and characters can be used in games such as NFT. At NFTBOOKS, each NFT is a book; its application value is to bring knowledge, enhance social understanding for readers. Thanks to this unique characteristic, these NFTs have an initial value that rises over time based on the popularity of the initiative.
There may be no right or wrong answers when analysing the value of NFTs. Before making a choice, the best option is to adopt a holistic approach to grasp all facets of a project.
At NFTBOOKS, we are confident that we will bring the best NFTs to everyone and are committed to constantly innovating to adapt to the development of NFT in particular and blockchain in general. Come to NFTBOOKS and live more lives with each book.