The NFT market has undoubtedly made an enormous impact on the digital arts industry. For many reasons, artists from all areas started creating their own pieces to participate in this universe. From the high demand to the extreme profitability you can achieve, the NFT space became a new market for these creators.
Because of this and the high volume of NFT created daily, artists and enthusiasts started questioning how to price a specific NFT project or asset. There are tons of factors that contribute to such an NFT achieving a particular value.
Here we will talk about the primary factors and rarity tools you can use to discover the price of a specific digital asset or collection. This way, you can sell your NFT for the right price.
This article is a segment of the article How to Price an NFT and Get Good Profit in the Process
What Is an NFT
If you still don’t know what non-fungible tokens are, don’t worry. We got you covered. A non-fungible token (NFT) is a unique token that can’t be replaced by anything else.
They can go from real-world objects transformed into digital assets like digital IDs and music, for example. All these assets are stored in different blockchains, like the Ethereum blockchain, and have ownership rights.
Since they are unique and can not be replaced, there is no specific price for the pieces, and it’s up to the owner to decide how much they will sell them for.
Although there is no specific price, there are some characteristics that create a suggested price. This value can be a decisive factor in whether to buy an NFT or not.
NFTs are usually referred to as only illustrations and paintings, but they go far beyond them. They can go from music to real products transformed into digital products.
There are tons of different uses for NFTs. This makes the possibilities almost endless in this universe.
How Much Is My NFT Worth?
Now it is time to understand how to correctly price NFT collections or a specific NFT with the help of different factors that can be easily analyzed. It is important to remember that a factor is just an NFT value estimator and won’t give you the immediate value of an NFT.
Since NFTs are unique such as their prices, these values are mere suggestions that may or may not be followed by their creators. No factor translates literally the value of an NFT and how much you must charge in an NFT marketplace.
When analyzing an NFT value, you first need to look at the rarity of the digital art and details like its traits and uniqueness. Some good examples of factors that can add more value to an NFT are the project’s hype and and diversity. This can make the intrinsic value of an NFT skyrocket.
As for a video game NFT, the rarity is calculated by how many players have that specific item. If only 1% of all the players have access to it, it means that the rarity of that specific item is really high, and so is its value.
Although other factors have a direct impact on the NFT value, for a massive part of collectors and investors in these digital worlds, the rarity is the most important one. Some pieces are valued based only on their traits and uniqueness.
The utility of the asset is the second factor that can impact the value of an NFT. If an NFT has a real application and utility, its value is more likely to be higher than the others.
The real application can go from an in-game skin if we are talking about an NFT videogame or an NFT that grants you access to events and places in real life. Some good examples of this case are BAYC and CryptoPunks, which give the owners access to private parties and events in digital worlds and real life.
The utility also adds a lot of intrinsic value to an NFT and high liquidity, especially when talking about video games. Investors can pay top dollar for the assets, depending on the game’s popularity.
There are tons of different possibilities when planning on adding utility for an NFT. This happens especially thanks to the internet integration we have in almost every activity of our daily routine.
NFT Tangible Value
Another detail that can impact the value of an NFT is the tangibility of the asset. Real-world objects tend to have a higher value when compared to items that only exist in the digital universe.
These NFTs associated with things of tangible value, aligned with ownership immutability, tend to reach astronomical values. The main consequence is an immediate value increase regarding the digital token.
Another detail that must be considered when deciding on the value of an NFT is the reputation of both the creator and previous owners. Unsurprisingly, NFTs uploaded by a famous creator have more chances of getting a high valuation and will attract more investors willing to pay top dollar.
But more than that, the ownership history of an asset also impacts its value. For example, if a famous celebrity acquires the NFT, the price also has a higher chance of increasing.
The last feature we will cover is social proof. This item regards the social media accounts for the project and the number of followers it was able to gather.
The hype and success of the underlying project directly reflect the social media and other marketing tools used. If the account could gather a huge volume of followers, it means that the NFT created hype on the market, and its price will consequently increase.
It is directly linked to the acceptability of the NFT, whether it’s an art or video game. Low numbers mean the lack of a solid ground for the project.
Using Valuation Tools to Know How Much Is My NFT Worth
If you don’t know how to calculate the rarity based on those criteria, don’t worry. There are tools and platforms made especially for users to calculate the value of an underlying project.
Here are the most common tools available on the market to calculate the value of an NFT. Be sure to check all the details to guarantee a correct price for your art.
Along with being one of the most famous NFT marketplaces in the world, OpenSea also has its own value calculator for NFTs and collections. From rare traits to ownership rights, the platform will give you a detailed list of the reasons why that is the correct value for the NFTs you are seeing.
Another great platform that can help users on finding the proper value for their NFTs. Their website is filled with articles and collection lists showing the latest releases of the NFT universe.
You will find lots of different tools and ways to evaluate your NFT and determine its fairest price. Rarity.tools is easy to use and has a user-friendly interface.
If you are looking for an easy-to-use platform with an incredibly done UX, the Evaluate Market is perfect for you. The website features many functionalities, from NFT buying to precise evaluation tools.
If you are looking for a platform to analyze your NFT and give a fair value, this is definitely a good one. You can also look at trending collections to find out why they are making success.
The last evaluation platform on the list is Moment Ranks. It is a home for NFT communities and knowledge exchange between NFT investors and creators.
The website also has a community expert on evaluating NFTs and giving a fair price for any piece or collection. It is a place worth looking out for when needing help with the evaluation process.
Conclusion on NFT Valuation
Deciding on a proper value for your NFT can be a really tough decision. Especially if you are new to the NFT universe.
From the traits present in the asset to the reputation of the project in your social media profiles, everything can have an impact on its value. This is one of the reasons why many creators get indecisive about the fair price for a single piece or collection.
No matter if you are doing it manually or using a valuation tool, be sure to double-check every detail. This will guarantee that your price is fair for the project, attracting even more potential buyers and investors.
Now that you know how to evaluate your art, it is time to start doing it. Don’t forget to use only trustworthy platforms, no matter if it’s for evaluating or selling.
A good marketplace is the first step for attracting a more significant volume of buyers. Doing this will guarantee your success as an NFT artist.