Throughout history, humans have developed different art styles to reflect the culture and society they inhabit. The same is true of the era which we inhabit today. The so-called information era is marked by a rapid development of technology, a general distrust of authority and institutions, and a return to more individualist and alternative ways to get by. It is no surprise, that to reflect this kind of culture, we’ve come up with an art form that incorporates all three.
What are NFTs?
NFTs are a rather new phenomenon, and many are still unfamiliar with the concept. So what exactly is an NFT? The short answer is, an NFT is a non-fungible token. For those still confused, the long answer is this. A non-fungible token is a piece of digital art, which is unique and irreplaceable (hence, non-fungible). For sports fans, the best way that an NFT can be described is, as a unique and irreplaceable baseball card.
In many ways, a non-fungible token is an extension of crypto. Indeed, many NFTs exist on the Ethereum blockchain, and can be bought and sold using ETH coin. Ethereum is not the only blockchain which has enabled NFTs. Polygon, Cardano, Tezos, and many others have begun embracing the phenomenon as well.
What are the most popular NFTs?
In the past few years, NFTs have seen a surge in popularity. The reasons behind this are plentiful, but before we get to the reasons, let us first talk about some of the best NFTs on the current market. Starting of course, with the most popular one today, the Bored Ape. If you frequent social media sites like Twitter, you’ve no doubt seen a form of the Bored Ape NFT. It is an image of an ape, sometimes wearing different clothes, with a bored expression. So far, it has been purchased by thousands of people, including celebrities like Gwyneth Paltrow and Justin Bieber.
Apart from Bored Ape, other popular NFTs on the market include the Cryptopunks, which is a collection of NFTs, the NFT-based, online game Axie, and the Invisible Friends, an NFT collection presenting invisible people in different clothing.
What makes these NFTs popular?
So, now that you know some of the more popular NFTs, the question remains, what is it that makes them popular? Several factors should be considered when talking about the popularity and price of an NFT. The first, and most important, is the factor which influences the price of any product. Market demand. The reason the aforementioned NFTs are so popular and highly priced, is simply because there is a large demand for these NFTs. However, the question now becomes: “"Why are they in high demand?”
One reason is the uniqueness of the asset. Simply put, the main appeal of an NFT is the “NF” part. That is to say, most people want something that is unique. The reason for this, is because unique pieces of art tend to accumulate value over time. This means that a unique NFT can be sold for a much higher price than it was bought for in the future.
Another factor is the popularity of the creators. While the main appeal of cryptocurrency and non-fungible tokens is anonymity, many creators have begun to go public, simply so they could garner more attention for their product. However, it isn’t necessary for the creator to be known publically. Certain NFT companies have gained a lot more traction then others, which has resulted in them selling a lot more NFTs. The aforementioned NFTs can be taken as examples of this.
Disclaimer: The information provided in this article is being provided solely for informational and promotional purposes and should not be construed as investment, tax or legal advice.