Why is CryptoPunk NFT so Expensive

Why is CryptoPunk NFT so Expensive

Why is CryptoPunk NFT so Expensive

Non-fungible tokens (NFTs) are expected to skyrocket in popularity by the year 2021. Among them has been CryptoPunks, a cryptocurrency whose value has increased in parallel with the amount of support it has received. Due to the reputation of the artists and the exclusive ownership of an artwork, we have seen how museum-quality art has become prohibitively costly due to the high demand for it. And, as the world has gone digital, so too has the art world. Why is CryptoPunk NFT so Expensive

They are being sold for millions of dollars in the middle of the continuing mania around NFTs. Beeple’s NFT sales of $69 million were the ones that truly caught the attention of the media, and the company has only continued to grow from there.

CryptoPunks are one of the most costly non-fungible tokens available. It is really responsible for three of the top five most costly NFTs ever sold. Earlier last year, a very rare alien punk was sold for 4,200 ETH ($7.58 million), and its owner is presently offering it for 35,000 ETH ($142.4 million) to the highest bidder. Why is CryptoPunk NFT so Expensive

Why is CryptoPunk NFT so Expensive

Why is CryptoPunk NFT so Expensive

What is CryptoPunks and how do they work?

Last year, John Watkinson and Matt Hall published a total of 10,000 punks that were made using an algorithm. The evidence of their ownership is stored on the Ethereum blockchain, which is distributed ledger technology. Why is CryptoPunk NFT so Expensive

CryptoPunks are 24×24 pixel art pictures that are mostly punky-looking men and women, with a few more unusual characters thrown in for good measure, such as apes, zombies, and aliens.

Watkinson and Hall produced these pixelated figures known as CryptoPunks, who come in a variety of haircuts, headgear, and spectacles. Since then, they have started another project known as Autoglyphs, which is a kind of generative artwork. In addition, they have established the Larva Labs firm to support their different initiatives. Why is CryptoPunk NFT so Expensive

Before today, CryptoPunks had a tiny but dedicated network of supporters. Everyone from Silicon Valley to YouTubers to poker players and celebrities joined crypto in their love of punks this year, and the mainstream fans followed suit. Logan Paul, a YouTuber, recently showed off his CryptoPunk, which he purchased for $170,000 in a video posted in March. Why is CryptoPunk NFT so Expensive

According to the non-financial transaction monitoring website CryptoSlam, the CryptoPunks platform has witnessed approximately $2 billion in transaction activity since its introduction, an increase from $200 million in April of this year and only $11,500 in June of last year. CryptoPunks were given out for free at the time of its inception, despite the fact that they are presently being sold for 6-7 figures. That’s correct if just one person has shown interest or conviction in them prior to their arrival. Why is CryptoPunk NFT so Expensive

Because there are only a limited amount of CryptoPunks available, possessing one has become a “digital flex” as the value of the cryptocurrency has risen. Several of its proprietors have even turned to parading them on social networking sites such as Twitter, by posting pictures of their punks as avatars.

 

Estimation of the worth of a CryptoPunk

Beauty, like with physical art, is in the eye of the beholder, and every piece of art has a varied value to various people who appreciate it. When it comes to evaluating any art, including NFTs, there is also the consideration of hedonic value, which refers to how much pleasure one derives from one’s work. NFTs are no exception to this rule.

When it comes to CryptoPunks, there are a variety of additional considerations that are taken into account when determining the value of the NFT.

 

Scarcity

First and foremost, there is a lack of quality. Just like there will only ever be 21 million Bitcoins and no more, there will only ever be 10,000 CryptoPunks in the whole history of the world. It is entirely up to the NFT creator whether they want their NFT to be a rare collectable or if they want to release several copies of their NFT. Nonetheless, the legitimacy of the NFT can be verified in both circumstances thanks to their distinct IDs and information. Why is CryptoPunk NFT so Expensive

There are no two punks who are alike in CryptoPunks. Some are wearing a headband, some are wearing hats, others are wearing little sunglasses, and several are wearing gold chains. The characteristics of each punk varied, and some are more common than others. Simply said, the more the rarity of an object, the greater its worth.

Why is CryptoPunk NFT so Expensive

Popularity

In addition to popularity, another important component in the price of an NFT is the amount of money that the NFT is worth.

After maintaining monthly sales between $5k and $50k until September 2020, CryptoPunk finally reached six figures for the first time with $2.96 million in sales. August 2021 was a record-breaking month for CryptoPunk, with around $680 million in transaction volume recorded throughout the month. In terms of monthly statistics, Cryptopunks had over 1200 unique customers, surpassing the 213 unique buyers in January 2021 and the 15 unique buyers in March 2018, respectively. Why is CryptoPunk NFT so Expensive

This is due to the fact that CryptoPunks only became well known in the latter half of 2020 and into 2021. Earlier this year, the payments giant Visa stated that it has purchased CryptoPunk #7610 for the sum of $150,000 (USD).

 

Age

Another issue to consider is the age of the NFT. Another reason for the high worth of CryptoPunk might be related to the fact that it is one of the earliest NFTs, earning it the title of “OG,” and so having significant socio-cultural importance. Why is CryptoPunk NFT so Expensive

Twitter CEO Jack Dorsey’s initial tweet, which he sold as NFT, gained in value since it was the first-ever tweet sent, making it a historical landmark and increasing its market worth.

CryptoPunks’ metadata, which is at the heart of each NFT and comprises the NFT’s name, description, attributes, and a link to the stored picture, provides information about the NFT’s durability on the Ethereum blockchain, which further enhances its allure.

 

Cryptopunks may look forward to the year 2022.

Despite the fact that NFTs have seen a fall in both value and volume since their peak in early 2021, they are still here to stay. Undeterred by the avalanche of projects such as Art Blocks, Bored Ape Yacht Club, Meebits, Cool Cats, and hundreds of others, CryptoPunks is one of the collections that has a promising future. It has maintained its position as the most popular and influential brand on the market.

In this blog we have provided information about Why is CryptoPunk NFT so Expensive

ALSO READ: ALL ABOUT IMAGINARY FRIENDS NFTs

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