Recently, collecting non-fungible tokens (NFTs) has become a hot trend in the crypto space. It’s also a great way to learn about cryptocurrency and blockchain technology, as many collectibles are built on top of various blockchains. However, with so many NFTs to choose from, it can be difficult to decide which ones are worth collecting. Therefore, this blog post will discuss what makes an nft collection valuable.
What makes an NFT valuable?
1) Rarity
Each NFT is unique, which means that the more limited it is, the more valuable. Some examples of well-known collectibles are CryptoKitties and Etheremon. Unfortunately, each has only a certain number available, which drives up the price when sold.
2) Functionality
In addition to rarity, another factor that can make an NFT valuable is its functionality. For example, some NFTs can be used in games or as assets on decentralized exchanges (DEXs). The more versatile a collectible is, the more value it has. It’s important to keep this in mind when choosing which NFTs to collect!
3) Scarcity
Even if an NFT has a lot of functionality and is not very rare, it might not be valuable. Again, this is because sometimes there are so many that people will pay less for them than they would for something else with the same functionalities, but that’s harder to find.
For example, one user collected all five Etheremon Legendary Mons. While this may have been a challenge, it was not as difficult as finding some of the rarer Etheremon. As a result, these particular NFTs are not worth the open market.
4) Community
Last but not least, the community is another important factor in determining how much an NFT is worth. If many people want to buy it and very few sell it, you should expect a high price tag.
Some examples of collectibles with strong communities behind them include CryptoKitties and Etheremon. In both cases, the developers have gone out of their way to create collectors’ fun and engaging experience.
5) Demand
In addition to scarcity, community, and functionality, it’s also important to consider the demand for a particular NFT. For example, some collectibles have already been bought out by investors willing to pay any price to obtain them. In this case, you might not be able to find one of these collectibles or will need a lot of money to purchase it.
An example of this is the game CryptoCountries. The developers have already created a limited number of collectible countries and are not planning on making any more. As a result, the prices for these NFTs are constantly going up!
6) Developer’s Reputation
Another way to determine whether an NFT is worthwhile or not is by looking into the developer that created it. Some developers have a good reputation for creating high-quality collectibles with strong communities behind them, while others don’t.
7) Future Potential
Finally, it’s important to consider the future potential of an NFT. Some developers have hinted at releasing new features in the future that could make their collectibles more valuable.
In conclusion, there are several factors you can consider when deciding which NFTs to collect. However, the most important thing is that you have fun while doing it!
