NFTs (non-fungible tokens) are unique digital assets that are bought and sold on online NFT marketplaces.
The most expensive NFT sale happened in 2021.
The NFT “The Merge” by anonymous artist “Pak” sold for the outrageous sum of $91.8M on Nifty Gateway marketplace. However, this NFT was not bought by one, but rather 29,983 people, so “the Merge” sold out being split into 312,686 coins distributed to buyers.
Because an NFT is not interchangeable and is certified through the Blockchain mechanism, it has restored value to what is called a “dematerialized good“ or a “digital asset“.
So, what determines the price of an NFT?
An NFT’s price is determined by it’s rarity, uniqueness, and the perceived value of the asset they represent, which can include digital art, collectables, in-game items, and other types of digital media.
NFT Price Estimation
NFTs are a relatively new and rapidly evolving market and it is critical for the users to understand the value of an NFT to spot an opportunity and determine whether to buy or sell NFT.
Price estimates are further helpful to assess NFT as collateral in the DeFi play.
bitsCrunch’s Price Estimation Tool
bitsCrunch — a blockchain analytics firm, which focuses mainly on building products using artificial intelligence for the NFT space— has built the most comprehensive tool to accurately determine the true value of NFTs.
Their Price Estimation accurately measures the true value of NFTs by determining key parameters, including sales history, metadata, and social media hype, which drives the growth of NFT projects.
bitsCrunch looks at the following to engineer features:
- Transactions: Looks at the historical performance of the NFT of interest or similar NFTs that have been sold in the past.
- Buy/Sell Intent: Another factor to consider when estimating the price of an NFT is the demand for the asset it represents.
- Rarity: Assess traits of an NFT and how rare (or common) those traits are.
In addition to the above, bitsCrunch also uses its in-house wash trade detector suite to further enrich predictions.
As of today, bitsCrunch supports price estimates for 2200+ collections summing to 30+M tokens (NFTs).
Click here to get started or get in touch with the team.
