What is the Most Expensive NFT?

NFTs (non-fungible tokens) have become a hot topic in the art world since artists like Beeple, Pak and more sold pieces for millions of dollars. Since then the NFT space has generated a lot of interest and have sparked many aspiring artists to venture into NFTs.

That being said, it makes you wonder – just how expensive can NFTs get? Or better yet, what are the most expensive NFTs, and why?

In the following reading, we will discuss some of the most expensive non-fungible tokens in existence, why they are so expensive and how you can get started investing in non-fungible tokens.

Understanding NFTs

To start, we should have a basic understanding of what a non-fungible token is. A non-fungible token, or NFT, is a digital asset that can represent a unique tangible or intangible digital property.

It’s similar to a cryptocurrency in that it represents something of value, but unlike cryptocurrencies which are fungible, NFTs are non-fungible.

The term “non-fungible” means that two things cannot be considered equal. This means that every individual NFT is unique, like a snowflake.

For example, if an artist creates a painting and sells it on a marketplace for NFTs, there will only ever be one of those paintings available for sale.

In recent years, Non-fungible tokens (NFTs) have become popular among people looking to monetize their digital content and assets.

The most famous example is CryptoKitties which allows users to collect and trade digital cats (NFTs) by breeding them together or buying them from other players on the platform.

Want to know more? Read here about What are NFTs and How Do They Work?

Why are NFTs So Expensive?

Okay, so now we’re back to our main topic. If you check out any NFT marketplaces, you’ll see that most of the official NFTs are pretty expensive.

One of considerably the most expensive projects on the whole NFT market is the one created by Beeple, called Everydays: The First 5000 Days.

Did you know that someone paid $69.3 million for an original piece of art by Beeple in March 2021?

The artist known as Beeple created 5,000 individual images over 13 years and describes his work as a diary of technology that captures the transformations he has experienced in his life since technology became a part of it.  

But why do these NFTs have such high prices? Are they really worth it?

The answer lies in the combination of two factors: scarcity and exclusivity. When you combine these two together, you have something that is considered valuable or desirable enough for some people to pay hundreds or thousands of dollars for it.

Scarcity

When a digital object is scarce, it means that the supply of that object is limited. For example, if you want to create a digital object that represents a rare Pokemon card, you can only make so many copies before it becomes too expensive to make more of them.

This helps to ensure that the value of these objects will not decrease over time due to market saturation (which is what happens with most cryptocurrencies).

Exclusivity

Unlike traditional assets such as stocks, NFTs can only be owned by one person at a time. This means that if someone buys an NFT, no one else can own it until they sell it or gift it to someone else.

This exclusivity makes NFTs so appealing because they feel the uniqueness or rarity of one asset, rather than just another article of clothing or car model that anyone could get their hands on anytime soon.

Further reading: What Drives the Value of NFT?

How can I start investing in NFTs?

It’s safe to say that NFTs have the inherent potential to change and revolutionise the way we associate value and appreciate digital goods in the future.

For those of you considering to invest in NFTs make sure you know what you’re getting yourself into. Conduct your due diligence and do your own research on not only the NFT project itself, but also its future prospect and the communities that support it.

With that said, below are some things to keep in mind when looking into investing in NFTs.

1. The project should at least have a clear roadmap

When you evaluate an NFT project, it’s important to look at the team’s roadmap. This document will tell you how they plan to develop their project and what they have achieved so far. If they already have a product that works, it will be easier for you to understand their progress.

If you see a project that doesn’t have the transparency of its owners or its development team, as well as a clear roadmap, It’s a good idea to be cautious.

2. Check if they have a strong community

A strong community is a good indicator that users are interested in the project. If there are many people talking about it on social media and forums, then it’s a good sign that the project is worth investing in.

If you’re interested in joining a NFT community, it’s usually easy to find one. Many NFTs communities are built around social media like Twitter, Discord, Reddit, Telegram, etc.

3. Determine your risk tolerance level before investing in any NFT projects.

You should always be sure to do research before making an investment, and should keep in mind that the value of NFTs is inherently volatile.

Don’t invest blindly! When considering whether or not to buy an NFT, you should consider your level of risk tolerance, your available funds, and the current price of NFTs.

If you don’t have enough money to buy high-priced NFTs, then it might be best to hold off on investing until the price has dropped significantly enough for you to buy some items at a cheaper price.

Final Thoughts

Although the technology of NFTs has been around for only a couple of years, it has gained widespread popularity, and it is expected to play an important role in developing the future of the internet or so called as Web 3.0. 

What is Web3? Read our guide on the next evolution of the internet.

Be prepared to spend more time learning the market and doing your research before making your first purchase and sticking with it.

Patience is a virtue in this market, so get your feet wet, and start small. Again, be sure to asses your risk tolerance and do your own research before making any investment decisions.

Further reading on NFTs: Explore and learn more in our NFT Hub at Easy Crypto.