If you are not living in a cave for the last 12 months, you have had some sort of experience with NFTs or Non-Fungible Tokens. A year ago, Everyday: The First 5000 days collection was sold for a whopping 70 million dollars. 

Well, it is not surprising that an art collection is getting a million-dollar deal. The major concern is that a digital art collection has received such a large amount in an auction. Since then, NFTs have had a no-setback as they have inclined in value in large numbers. 

Almost everyone has showcased an interest in owning an NFT. For some, it is a passing cloud, while for others, it is a valuable community they are eager to be a part of in the future. 

Despite the fact that the crypto market is now getting matured, NFTs are not going anywhere, with almost everyone getting into the trend. So, what decides the value of an NFT, or how can you improve the value for your upcoming NFT collection? 

In this article, we will discuss some of the common factors that determine the value of an NFT and how focussing on these factors will improve the value of your Non-Fungible Token. 

So, let’s find out how you can build value for your NFTs!

Decoding how NFTs Gain Value

There is no doubt that NFTs have transformed the world of the digital asset market with their amazing functionalities. A lot of smart people think about how one can tell that someone owns a specific digital asset, as anybody can store the art in their Pendrive.

On the other hand, before someone has to sell a product, the other one must be able to buy it, which leads to the invention of smart contracts. Every NFT is unique, and it enables the seller to transfer ownership to the buyer. NFTs have brought an end to this problem as the owner of a particular digital asset can transfer the ownership to the buyer, which can make them a vital digital asset.

Value Making Factor 

NFTs can serve as a subscription ticket, membership access, exclusive merchandise, or special discounts for people with an NFT. The creators of the NFT also organize in-person meet-ups for their investors. 

The same happened with the BAYC or Bored-Ape Yacht Club members, which was a community of bored apes who even organized a yacht party for its members. The project that started with creative graffiti has helped many people make millions. Some of the other popular projects, like Gutter Cat and Sup Ducks, have also had amazing utilities, which has helped them in getting more value for their investors. 

Factors That Affect The Value of your NFT

By now, you must have learned about some of the top facts that have helped the majority of the NFT project succeed. In the meantime, even you must have had doubts about how few NFTs get more value than others. 

Here are some of the best factors that determine the value of an NFT. 

  1. Utility.
  2. Ownership.
  3. Rarity. and
  4. Liquidity.


Utility is one of the hottest topics which is discussed when the concern is about the value of an NFT project. It is also one of the main reasons why some projects are more valuable than others. 

There is no doubt that the utilities of the NFTs have been awesome for the last few months as creators have understood the significance of providing value to NFT projects. In simple terms, people would only invest in an NFT project if it has demand or value in the market, irrespective of whoever recommends them to invest in an asset. 

The utility of the project also helps investors attract more investors, which further creates the demand for the specific NFT, which in turn increases the price of the NFT. 

Ownership History of NFT

The value of an NFT also depends on the previous owner of the digital asset. NFTs that are owned by reputed investors or celebrities have more value when compared to tokens that non-reputed investors own. 

One of the most popular NFT holders, Beeple, who owns the world’s top three NFTs selling an NFT, can expect a million-dollar deal in return. Tim-Berners Lee sold an NFT of the world wide web code for nearly 5 million USD.

The above-mentioned examples must be quite enough to define the significance of the power of brand endorsement and how it can affect the overall value of a digital asset.

In addition, the value of the NFT will only grow if the celebrity or influencer who owns the NFT is famous for an extended period in the near future.


Rarity is present in the gene of every NFT, but still, few NFTs are more valuable than other NFTs. For example, there are only 10,000 CryptoPunk NFTs available in the world, making them more valuable than the Reddit FIFA World Cup NFT, which is owned by almost every football fan. 

Liquidity of the digital asset


There is no doubt that nobody would love to invest in a project which they cannot sell at the price they want. The liquidity factor plays a crucial role when it comes to the price of the NFT. For example, NFTs that have ERC-20 traits or that are traded within the Ethereum cryptocurrency have more liquidity when compared to non-ERC-20 NFTs. On the other hand, investors love to invest in NFTs with higher liquidity as they can sell the project anytime. 

Sum up

There are millions of NFTs available in the market, and every day, hundreds of projects enter NFT marketplaces to sell their NFTs. You have to consider all the above-mentioned factors to help you decide the value of your digital assets. 

You can also hire an NFT marketing agency that can help you build value for your non-fungible tokens. They can help you build a community for your project or help you drive brand awareness with the help of social media marketing.