Outside of scarcity, what gives an #NFT value?
With insights from @beijingdou and @adamamcbride, we discovered that innovation, historical significance, utility and community were crucial factors influencing a collection or piece's value.
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With insights from @beijingdou and @adamamcbride, we discovered that innovation, historical significance, utility and community were crucial factors influencing a collection or piece's value.
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Beyond #crypto, innovators and trendsetters have always commanded a price premium.
Picasso's "Les Demoiselles d'Avignon" kicked off the Cubism movement and has an estimated value of $1.2 billion.
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Picasso's "Les Demoiselles d'Avignon" kicked off the Cubism movement and has an estimated value of $1.2 billion.
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#Blockchain innovators and creatives behind projects like #CryptoPunks, @artblocks_io, #Autoglyphs and @lootproject also demonstrate the premium innovation carries.
Combined, their total volume exceeds 3.4 million #ETH, or $10.4 billion.
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Combined, their total volume exceeds 3.4 million #ETH, or $10.4 billion.
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Utility and community are also important.
#GameFi assets represented by #NFTs give virtual items greater permanence and potential utility outside of the original game.
Even abundant in-game items can hold their value should a game remain popular.
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#GameFi assets represented by #NFTs give virtual items greater permanence and potential utility outside of the original game.
Even abundant in-game items can hold their value should a game remain popular.
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Collections like @CyberKongz and @BoredApeYC extend various perks to their holders — and their NFTs are among the industry's most expensive today.
However, such premiums may disappear should they fall out of favor with communities or teams lose interest.
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However, such premiums may disappear should they fall out of favor with communities or teams lose interest.
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The success of @nbatopshot on @flow_blockchain and the huge prices of certain moments demonstrate that #blockchain decentralization isn't the most important factor in valuing a collection.
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@adamamcbride states network effects are vital, too. Speaking about @ethereum #NFT dominance, he said:
"Sellers go where the buyers are, and buyers go where the best NFTs are. It's a virtuous circle that will be difficult for an alternative blockchain to beat."
"Sellers go where the buyers are, and buyers go where the best NFTs are. It's a virtuous circle that will be difficult for an alternative blockchain to beat."
With so many projects offering little innovation or utility continuing to find buyers, it is unclear how sustainable the current #NFT market is.
Should interest wane, many may be left holding illiquid JPEGs.
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Should interest wane, many may be left holding illiquid JPEGs.
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Yet, given the pace of innovation, opportunities remain for those able to spot groundbreaking concepts early.
Here’s what we found:
okex.com/academy/en/nft…
Here’s what we found:
okex.com/academy/en/nft…
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