Are NFTs worth millions of dollars? In such a nascent market, which NFTs application is right for you?
A wave of NFTs is emerging in the fintech world on a global scale. Their average price is in the range of $1400 to $4000 as in CNN’s reports. However, some of them can be worth up to millions of dollars and keep increasing.
So why are some NFTs worth millions while others aren’t? How is NFTs’ value determined? Do NFTs benefit anyone involved?
The answer is in the nature of NFTs, market dynamics, and demand.
The driving forces that determine the value of NFTs
NFTs are mainly for collectible purposes and their value is preeminent depending on the market and demand.
Scarcity of NFT
It’s not hard to understand the concept of NFTs – non-fungible tokens. The nature that creates ownership of a unique digital asset makes NFTs special.
However, there is still significant controversy surrounding this issue. Some people argue that buying and selling crypto art is not for the enjoyment of painting. It just means attaching a title of ownership, so that the buyer has a feeling of ownership or reselling at a higher price to make a profit, not to enjoy the work.
Others debate that if there are still buyers, the value of the work must be available. The transaction will ultimately be directed to the person who wants to own and enjoy the work.
Market dynamics and demand gradually become diversified
Fear of an NFT bubble is inevitable. However, for a new market with untapped realistic potential and when opportunities are still open, NFTs transactions are still quite active.
In addition, NFTs are gradually getting closer to the actual needs, closer to the mass. They satisfy the demand for character design in games, fashion, or some projects related to architectural drawings.
What opportunities are there for those interested in NFTs?
For the creators
NFTs have possibly opened up an “exponential growth” opportunity for creatives.
In the fine art or visual artwork range, the value of NFTs artworks can now approach the value of traditional distribution artworks. Of course, artworks with a value of millions of dollars mostly come from famous artists with a huge following like Beeple.
In addition to senior artists like Beeple, NFTs exchanges are flooded with teenage artists, promoting works on social networks instead of the reputable auction or exhibition companies.
In fact, for some of these young artists, creating NFTs and other digital art forms has become a summer job or a place to indulge in personal interests or to learn to become a full-time digital creator in the future.
They can draw cartoons or self-portraits or draw pictures for users of game streaming platforms.
For businesses interested in NFTs
NFTs can be a new direction for businesses’ marketing strategies when the world is entering the stage of digital products.
Recently, luxury fashion brands have continuously launched NFTs products that combine gamification to expand their brands and reach closer to users.
Reputable interior design brands are also putting a great deal of interest in NFTs and blockchain. Just recently, the first NFT digital home – Mars House, designed by artist Krista Kim, sold last month for $500,000, according to ArchDaily. The famous interior design and business group AAA Group is also planning to deploy a blockchain NFTs application project to store its high-end designs.
Finally, many sports fans are no stranger to their favorite athletes’ NFTs cards issued by their host clubs.
We are seeing more and more practical applications of blockchains and NFTs. Talk to us if you are interested in NFTs and would like to learn more about their innovative applications.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since its establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/
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