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    Why is CryptoPunks NFT so expensive?

    NFT since last year has exploded. Their marketplace has seen a significant rise since the previous year, and it is still going up at a significantly faster rate. Like other NFTs, CryptoPunks NFT collection has also seen a considerable surge in popularity and value. Since the sale of Beeple’s $69 million (the world’s most expensive NFT ever sold), there has been only an upward trend for NFTs.

    What are CryptoPunks?

    John Watkinson and Matt Hall, 2017, introduced a new NFT known as CryptoPunks. They are a collection of 10,000 unique punks released on the Ethereum Blockchain network. These CryptoPunks were created with different hairstyles, glasses, and hats, and after that, they launched another project known as Autoglyphs. They were free to claim when they were released in 2017, and the only condition was that you have to have an Ethereum wallet to claim that. However, just after their release, they all were quickly claimed, and now they are selling for millions of dollars.

    CryptoPunks NFTs is one of the most expensive NFTs in the world. There make 3 out of the five most costly NFTs ever sold. One of the Ultra Rare Alien Punk owners has listed his NFT on sale for 35,000 ETH ($142.4 million), and the lowest rate today is 61.95 ETH, which is about $65,000.

    This CryptoPunk platform has seen nearly $2 billion trade volume since its launch making it one of the highest trading NFT in the world. Now, let’s see why this CryptoPunk valuation is in the millions. 

    Valuation of CryptoPunks

    Many factors can be taken into consideration when doing the valuation of CryptoPunks. But we would like to mention some of the top factors for this valuation. They are:

    Scarcity

    The very first reason is the limited quality and quantity of the NFT. NFT values lie in this. Like there are limited numbers to any cryptocurrency globally, such as Bitcoin, there can be only 10,000 CryptoPunks. It is totally up to the creator to create a replica and or different version of the same NFT; in both cases, NFT’s authenticity can be verified through their unique IDs and metadata. As no two CryptoPunks are the same, it makes each CryptoPunk a rarer item which increases its value.

    Age

    Age also leads to the valuation of the NFT. CryptoPunk is one of the oldest NFT globally; it also makes another factor. This makes them OG, which gives them socio-cultural significance. Their Metadata shows the project’s longevity, which provides the user with assurance.

    Popularity

    Popularity plays a massive role in the valuation of the NFT. It plays a role in marketing. As we all know, how can positive marketing increase the sale of a product? This is also the same here. CryptoPunks’ owner has created their discord server to talk about upcoming NFT projects they are interested in purchasing. In this, they tell people how much CryptoPunk is valued. They flaunt their NFT on the social media platform. They openly say positive things about this NFT and how they can make millions from it, which creates a level of marketing for this NFT and increase its popularity.

    So, these are the prime reasons why this NFT is much higher valued. Let’s be true that NFT will stay for an extended period, and that’s why many celebrities and rich people are getting into this space. 

    Also, Read https://nftjet.co/warner-music-takes-on-mike-shinoda-as-community-innovation-advisor/.

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