The large digital currency market is growing and constantly changing, introducing new types of cryptocurrencies in a short period of time. Therefore, the NFT market has grown considerably in this rule, which has experienced this growth in 2021, and this action has made the pricing of NFT very important. It is good to know that some celebrities, big companies and even artists are collecting valuable NFTs. As you know, NFTs are actually irreplaceable and are like a bridge between the digital and physical worlds. These types of tokens may be unique to a video game or a work of art that grants the holders immutable ownership rights. Next, we are going to discuss how to value NFT or how to price NFT, stay with us.
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How to price NFT with blockchain security factor
In this section, we want to talk about NFT pricing with blockchain security. The first factor that comes up about NFT valuation is the security of the blockchain network. First, you need to know on which network this token is located and if that network is safe. Of course, as long as the NFT is on the blockchain network, it continues to work, and hence the NFT exists. In simpler language, the presence or absence of NFT depends on the network it is placed on. Know that most NFTs are on the Ethereum network, because the Ethereum network is very secure.
Also note that NFTs located on the Ethereum network can actually exist for a long time relying on Ethereum smart contracts. To learn more about the concept and market of NFTs, read the NFT training article.
How NFTs are valued based on whether or not they are on chain
The pricing of NFT depends on whether they are placed or not and is determined accordingly. As we stated in the previous title, the life of NFT tokens located on the network depends on the same network on which they are located. Of course, due to the dependence of these types of NFTs on their blockchain network, they usually have a longer lifespan and price. Of course, some NFTs are outside the blockchain network. You may be wondering, if they are out, where are they? It is better to know that these types of NFTs are stable on cloud storage such as Google Cloud, iCloud, and also through IPFS centralized hardware.
Valuation based on NFT token age
Since NFTs don’t last very long, valuation based on NFT token age is not very reliable and is not a very good measure of how NFTs should be priced. The NFT token market is very hot this year (2022) and it is a bit early to consider age as a criterion. After about 5 or 6 years, age can be considered a benchmark for older NFTs. In general, age is not a criterion for influencing the price of NFTs, and the reason for this is the youth of this type of token, but in the next few years, this criterion will also become one of the influential criteria. So, investing in good tokens can be profitable in the future as the age of that token increases.
Read more: Best NFT token
Creator and community influence on how NFTs are priced
As it can be seen from the name of NFT, the creator and society have a significant influence on NFTs; So it is one of the ways to increase the price of NFT. Hence, advertising, identity of current and previous owners of NFTs and people who follow these owners are of high value. So, as many people follow these NFTs on social networks like Instagram, they will create demand in this field. Therefore, it can be said that it is one of the ways to increase the price of NFTs.
If you are looking to know how NFT value goes up? Because these tokens were created by famous people or artists, they have a lot of value due to their support. To understand this, we give an example that one of the famous NFTs belonged to one of the Formula One cars and was sold for $113,000.
The impact of scarcity on how NFTs are priced
Rarity refers to how rare and special a type of token is, as well as how hard it is to obtain. Therefore, the impact of scarcity on NFT pricing cannot be ignored. Now, if this question has arisen for you, what type of NFT is considered rare? As an example, he mentioned NFTs created by a famous artist for works of art. There are also some games that have extremely rare items that can be sold as an NFT token. By reading the NFT making article, you will get to know more about how to create and make NFTs and you will better understand the explained items.
There is no right or wrong answer in how to price NFTs, but in this article, by answering the question, how does the value of NFT increase? We have learned the necessary guidance on how to price this token. By mentioning these things, you will get a correct understanding of the price and how to value NFTs, and in order to make a better decision in your purchase, it is better to pay attention to these things.