What Makes an NFT Collection Valuable and Sought After?
Non-fungible tokens are unique, and collecting them is quite profitable. When talking about tokens that can’t be exchanged, we mean unique items that offer exclusive experience and act like digital art.
An NFT collection is a set of unique digital items with a common theme, utilities, way of creation, and a central idea. In most cases, they have exceptional value because of the aesthetics and messages they carry, as well as real-life use cases. This is true for most top-selling NFT collections on marketplaces such as OpenSea. But let’s take a deeper dive into the topic.
Key Factors That Turn Digital Asset Sets Into Top NFT Collections
To realize better what kind of NFT top collections to consider buying or what to aim at when starting to create your own art for sale, it’s more than necessary to find out the theory. So, here is what makes top NFT collections so valuable. On our list, these are 4 key points.
- Utility
- History of ownership
- Being rare
- Liquidity
This is what we call real-life use, and it concerns the whole crypto space. This characteristic can include a lot starting from an improved probability of in-game items and finishing with being hosted at multiple blockchains at the same time (like Solana, Polygon, and Ethereum).
It’s popular right now to create the so-called ‘yield bearing’ NFT, – i.e., those that can generate income. This often applies to game characters (such as Axie pets or Pega) which are bought in their ‘basic’ equipment and upgraded to a level when it is selling at the highest price. Such NFTs are valuable as they allow limitless user interaction and decision-making freedom.
Here it’s pretty simple: if a famous person owned the token before, it automatically becomes pricey, no matter how long they held it. It also depends on the identity of an author. For instance, art pieces by Beeple are selling for millions. This is also seen in projects where a line of items sells at the same price, except for the token owned by a celebrity once (like in Crypto Punks).
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Just like paintings and sculptures, top NFT collections are more valuable if they don’t have equivalents, and other items don’t even come close. This might be a feature or visual trait that makes it stand out, for example, as in the Bored Ape Yacht Club collection: each ape has got something unique, whether it’s a hat, background, or an eccentric accessory.
Higher liquidity means a higher value in the world of crypto coins. This partially explains why many tokens made on the Ethereum blockchain are counted as more valuable than those minted in a ‘lazy’ way or off-chain.
It also has to do with how quickly the asset you hold can be turned into cash. Again, this is interconnected with other factors described above – how many people want to buy it and see it as beautiful artwork.
To check the liquidity of NFT collections, look at the trading volume.
To see info on sales along with top NFT collection ratings and new drops, visit TopNFTCollections.com. The resource shows the top ten projects for the latest time, shares details on the upcoming collections, and gives weekly updates on trending tokens.
Wrap up
Hopefully, we managed to answer your question about popular NFT collections and what drives their value. Use this info in the process of choosing a top NFT for your budget and checking if the best NFT collections will still be in demand soon.
