Roughly a year ago, there were only a handful of people who knew something about the term NFT. Throughout 2021, this term is easily one of the most frequently used ones. The reason is obvious, we can see that this is a concept that is tied with the concept of cryptocurrencies, the blockchain system, to be precise. For those who don’t know what it means, we’re talking about digital assets that come in a visual form.
NFT is practically a token that confirms the ownership of a certain digital asset. When you take a look at some reports and analytics done by several credible agencies out there, you will see that the sales of these tokens are higher than two billion US dollars, in just one year. However, when we’re talking about market capitalization, it is interesting to see that it is higher than seven billion US dollars.
There are countless stories about how some NFTs were sold for sums nobody could dream about until recently. For some reason, animal NFTs have attracted particularly high interest from the traders. If you want to take a look at one of these, be sure to visit our article about Panda NFT. Now, let’s take at some of the most luxurious ones out of all of them, and some relevant information about this concept itself.
Dog Picture NFT – ‘Feisty Doge’
There are numerous animal NFTs that have reached some impressively high prices. However, there is one that stands out from the crowd. We are talking about a dog picture NFT that was sold for $110 million. For a couple of days, it was the highest-paid out of all of them. However, some other ones were sold for more money. Nevertheless, it is still the most exclusive piece on the market.
Some would say that the reason for it reaching this value is because the dog species featured on this image is Shiba Inu, which is famous because of famous memes. Not only that, there’s even a cryptocurrency, Dogecoin, which has this species as its main mark. While we believe that this has something to do with the price height, the image itself is pretty hilarious, because the dog is feisty.
Other Popular Animal NFT Collections
It needs to be said that there are numerous animal NFT collections out there. One of the most popular ones is certainly the Bored Apes collection. Some pieces from this collection have been retailed for a high price. Besides this collection, you can take a look at some other well-known ones like CyberKongz, Lazy Lions, Cool cats, Doge Pirates, and Pudgy Penguins. All of them fall into the category of animal NFT.
We would like to focus on the Bored Apes collection for a bit. It consists of various, bored monkeys who are dressed in numerous styles. Each piece in this collection is unique, and the artists who have done them have given a certain price to each one of them. We will talk about how NFTs are evaluated later in this article of ours.
Another really popular collection these days is known as DPudgy Penguins. The number of pieces inside this collection is nothing short of exceptional, 8,888. Imagine that, each of these is unique. We cannot do anything but congratulate the artists responsible for them for their hard work and dedication. If you take a look at some reports on this topic online, you will see that this assortment is the second most popular one, after Bored Apes.
How is NFT Valuated?
NFTs are valued as any other piece of art. Meaning, its value will be determined by a couple of relevant factors. We are talking about the artist’s credibility, the artwork itself, efforts invested into creating this piece, the story behind it, and the social currency of the person who’s created it. But when it comes to its initial price, it will be determined solely by the artist.
Naturally, those who are interested in purchasing that particular non-fungible token will take all the factors, we’ve already named, into consideration. While some would say that this is not the most reasonable way to determine price, we wouldn’t agree with this opinion. There is practically no other way to know how valuable each one of these is. So, all of these factors combined to generate the price.
Can They Be Regulated?
Since the concept of NFT is a rather new one, there are not many people who know about it. That’s why one of the most frequently asked questions out there is whether there is any regulator of this market. As is the case with the cryptocurrency market, it needs to be said that there is no way to regulate this market, because it is decentralized. No authority can influence any movements on this market.
Even though it may look like the current non-fungible tokens are a work of art, we can see that there are a couple of trends that will reshape this market completely. The most important of all these trends is fractionalization. Basically, it means that every NFT out there will be divided into a couple of shares that will be sold on the market. So, there may be more than one owner of a particular piece.
In the last couple of decades, this is a concept that has been implemented in some traditional artworks. So, there is absolutely no reason why it shouldn’t prove successful and effective when it comes to NFT. Those who want to invest in these can purchase a smaller share of certain artwork, and will hope that the price will rise in the future. That way, they can earn a significant profit.
Although the NFT market is a relatively new one, it has achieved many great things. Just see how many people are interested in investing in these. The best example of this concept’s potential is the price achieved for a certain animal NFT, which was discussed earlier in this article of ours. Furthermore, you can take a look at a couple of insights that can help understand this concept much better.