How to price NFT collection

How to price NFT collection

How to price NFT collection

How Much Should You Sell Your NFT Art For?

The price of the tokens being sold can be fixed, or it can be determined in a competitive struggle at the auction. The trading process must be in constant motion for the NFT Price In-Contract to be maintained at the same level or show an increase. Activity in the NFT markets began to appear at the beginning of 2021, and by the end of it, the trading volume exceeded half a billion dollars. It became a sensation because previously trading in digital assets did not cause such enthusiasm. Any modern digital object can be implemented in the form of a non-fungible token, which is the NFT. This could include, for example:

  • computer game characters
  • virtual sports
  • digital content as works of art;
  • other virtual environment objects, including collectibles.

Even though NFT records are often found on blockchains, in particular Ethereum, this does not mean that tokens and cryptocurrencies are the same.

How is the price of your NFT collection determined?

There is no clear algorithm that allows you to determine the price of your digital certificates with a certain degree of precision. Every would-be seller asks the same question: "How much can I sell an NFT for?". As a strategy, you can choose to sell tokens in the order of listing on the exchange. As an alternative, you can use the "buyer's price", i.e. the NFT value that interested parties are willing to offer for your lots.

As a seller, you have to strike a delicate balance between too low and too high a price of tokens. An inflated value can lead to a freeze of a digital asset - you will never be able to sell it. To determine a good starting price for NFT, you need to try to take into account the influence of some components, which will be discussed below.

 

Accounting for the costs incurred

This should include the expenses that you incurred when creating the NFT. For example, the salary of an artist who made a 3D drawing, commissions when placing tokens, the interest charged on sales, and marketing promotion costs for digital goods. The sum of the mentioned and other components will give you an understanding of the certain cost of your certificates.

Exclusivity & functionality

The NFT Price In-Contract is always influenced by how rare and exclusive the token is. Short-run series are often significantly more expensive than multiple digital copies. And this is quite natural because original paintings are also more valuable than their digitized reproductions.

Service NFTs can also cost more than regular NFTs because are valued by customers for the fact that they can be used to purchase services and various goods online. Thus, to sell NFT for a high price, you need to take into account the potential needs of your future clients.

Building a brand

As in any other industry, brand names are more successful than noname. Think of your own NFT brand and promote it in every possible way, using the power of social networks and messengers.

Good results show joint promotions conducted with other artists, companies, and platforms. This stirs up interest and mutual exchange of the audience and opens up new opportunities to increase the sale price of your digital assets.

I set a price on an NFT: what to consider in the first place

Many factors can influence the cost of token realization. In the following, we present 6 important and potentially defining indicators. This will help you learn how to catch the trends and vectors of pricing and sell an NFT for cash with the greatest success.

Utility

The benefits that a digital asset can bring can be assessed by the functionality of its links between the digital and real world. Some NFTs, for example, can be used as part of computer games in the form of bonuses, material resources, household items and clothing for characters, and so on.

If a digital asset fails to provide value, its price will tend to the lowest levels. The cost of game tokens, which are actively in demand in the gaming environment, is only increasing every day, and such trends will only increase as more and more users are introduced into the field of NFT activity.

For example, some of the NFTs in the Lewis Capaldi collection on Binance NFTs allow their holders to earn special rewards, including physical goods, studio tickets, and participation in special live shows. Other tokens can act as collateral when securing loans. They become inaccessible to the owners until the debt is closed, and then they are returned to the borrowers.

Community Options

This factor strongly influences the setting of an NFT price via auction platforms, because the larger the number of community members, the wider the reach of the target audience when selling digital assets. The dissemination of information on the network can attract the attention of a large number of users, this increases the chances of a price increase when bidding according to the principle of an open auction.

Bored Ape, which is a long-established and very popular collection of tokens, has a well-established and highly active community. Therefore, presenting the project to the general public is not difficult for them.

Checking the size of the community of this project is not at all difficult, for this, you can go to the official Bored Ape pages on various social networks and simply estimate the number of active subscribers.

The number of NFTs on the secondary

This is another factor that should be taken into account when pricing a digital asset. Not the most positive scenario is the situation when the existing supply significantly exceeds the demand.

How can you know about it? The presence of many offers for the sale of tokens, which is accompanied by low prices, as well as a low indicator of buying activity. It can be assessed by analyzing the number of wallets participating in the NFT market, for example, by day, week, or month. By taking the average, you will get a reliable marker of buying activity and overall market demand for the cryptographic certificates presented.

Growth prospects

You can evaluate the potential of a token by how rare NFTs are and by the size of their community. Prospects are visible if we analyze the relative supply and demand for this type of certificate.

The long-term support and activity of the NFT community can be a good factor for its value to grow. This shows the interest of the audience and the ability to sell an NFT for the first time quickly and without problems. This situation shows good chances that the project will be long-term and promising, gaining momentum over time. In this case, NFTs will increase in value, increasing their value and attractiveness day by day.

The long-term attention of the audience here should be understood as the time during which the collection will be in actual demand in the market, and the activity of the community members will be maintained at a high level.

A good example of a constantly growing and strengthening community is the audience of the Star Wars film franchise. The famous saga of the adventures of the Jedi, the rebels, and the forces of the Empire opposing them, has attracted more and more viewers for more than 40 years.

Similar analogies can be drawn for NFTs, the ability of the collection to hold the attention of the target audience for a long period will only strengthen the potential of the tokens and will allow us to talk about good prospects for their price growth in the future.

 

NFT creators

The origin of digital assets plays an important role in their price formation. Users always want to get enough information about the creators of the token before they start considering buying an NFT.

Information about it includes the brand's popularity in the market, the history of its activity, possibly the background of its appearance, as well as other factors. All this data can be easily read from social media pages, possibly on thematic sites or forums. Through this analysis, potential buyers can assess the chances for the creator of the tradeable token to grow, which, in turn, may affect the asset's revaluation in a larger direction in the future.

Personal assessment

Personal taste will always be one of the determining factors when deciding whether to buy an NFT. There is always a possibility that a token offered for sale will be valued in connection with subjective indicators: personal assessments of its design and aesthetics, possibly loyalty to the issuing brand, etc.

Price Your NFTs for Success if you think the asset is worth it. After all, the purchase decision cannot be dictated solely by objective factors such as demand and the current price level for such tokens, etc. We all buy things that we just like, sometimes closing our eyes to the influence of other components of the choice.

It is not known how the price of the asset may change in the future, but its high intrinsic value will persist if the purchase has brought real satisfaction, do not forget this.

Conclusion

The indicators described are rather hints and good advice on the formation of the price of tokens, rather than rigid pricing criteria. With all the desire, it is impossible to accurately determine the cost of NFTs, especially with a high degree of accuracy to assess it in the future.



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