What makes NFTs valuable?

November 11, 2022
Posted in BLOG
November 11, 2022 Tegus

What makes NFTs valuable?


People unfamiliar with NFTs have been wondering why some of them have been selling for millions of dollars like Beeple’s “Everydays: The First 5000 Days” which sold for $69.3 million at Christie’s first NFT auction. They may ask themselves, “What makes NFTs valuable? Aren’t they just tokenized JPEGs?” 

For those who are familiar with NFTs, they can give a clear answer that’s easily understandable and makes perfect sense. NFTs are art and because they are art, they are inherently valuable.

It’s their scarcity

NFTs are valuable because they introduced scarcity into the global digital market. They aren’t just images that you right-click and save…. they are digital products that you can actually own and have the metadata and blockchain backing to prove it. In fact, when you buy an NFT that is 1:1, scarcity is programmed into the blockchain. There will be no other NFT like it. It is truly unique.

When you look at the laws of supply and demand, the rarer an item is, the more valuable it becomes. NFTs don’t have to be just art either, they can be music, virtual land, in-game assets, and many other digital goods that are bought and sold on NFT marketplaces like OpenSea.

With Tegus NFT Platforms, you’ll have all of the benefits of OpenSea without the competition. You’ll have 1:1 NFTs on a personalized marketplace that nobody will find anywhere else. Not only that, you’ll have secure storage and a loyal fanbase of patrons to support you as your creativity grows. 

The mechanism that turns your art into an NFT is the minting process. When you mint an NFT, you determine its supply. If you limit the supply of an NFT to one, it makes the NFT inherently more valuable than if you made its supply much higher like 100. 

An NFT that is truly unique will reward you when the right buyer comes along. They exist out there!

It’s their utility


One way that NFTs garner attention and high prices is the utility that they provide. One of the greatest use cases that NFTs have is their ability to be used as a means to raise funds for artists and/or the causes that they support. Blockchains have built-in security and smart contract mechanisms that ensure that transactions are safe 

There have been many successful projects in the NFT fundraising space. One heartwarming example is in May 2021 with Noora Health successfully selling out its one-of-one “Save Thousands of Lives” NFT. The NFT sold for 1.3K ETH. At the time it was valued at over $4.4 million dollars. The funding provided health literacy programs for families. Noora Health was better able to fulfill its mission of improving health literacy and saving lives.


An Eternal Digital Lifespan


Long after the original artists are gone, the blockchain will preserve NFTs indefinitely. Digital goods can be purchased an unlimited amount of times, but eventually they will cease to be sold. When digital marketplaces are gone so too will the digital goods that they house. The benefit of NFTs is that the blockchain stores and preserves all assets within it. So long as the blockchain exists, NFTs will always be retrievable. The utility of blockchains and NFTs are undeniable, and so too is the inherent value that makes 1:1 NFTs extremely valuable as well. If you don’t own NFTs now, then you’ll want to if you want to truly support the legacy of the artists that create them!

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