Prices range from $1 to millions, averaging at $900
While million-dollar sales and NFTs hit the headlines daily, the average cost of an NFT on leading digital collectibles marketplace OpenSea is around $900. While this is an average cost calculated across thousands of sales and multiple collections it indicates that while a lot of people may be feeling priced out of NFT ownership already – there is certainly less of a barrier to entry than some may think.
Interestingly, the figure is echoed over on another leading NFT marketplace Rarible where the average sale price of an NFT is around $890 at the time of writing. The average cost of an Axie is around $244, which while much higher than just 6 months ago still represents a reasonable entry investment to get into the game and start earning SLP. Sticking out like a sore thumb is the CryptoPunks collection with an average price of over $80,000. Although strictly speaking it’s not a marketplace and more of a collection.
Necessity… not luxury
With Twitter users now able to use their NFTs as avatars through third-party apps this week NFT ownership may be about to become less of a fad, and more of a necessity for those wishing to fully participate in the digital world. We are already seeing waves of celebrities, and musicians ape into NFTs. Most reveal them on Twitter as replacements for their own face. However, NFT avatars and wearables are not just for the rich and famous as was well demonstrated during the Decentraland Metaverse festival where hundreds of avatars converged in the virtual world to party.
Looking around you see avatars sporting their BAYC hoodies, RTFKT sneakers, and more. As a person with no wearables to my name, I’ll admit, my FOMO levels were peaking. Additionally, after spending time at the festival I can see how these items will become digital, social badges in the future. A way to gauge a person. As arguably, what we will take into the digital world will be far more visible and telling than the things we hold dear in the real world. That mostly stays hidden from public view.
Because the million-dollar sales are the ones we mostly pick up on, what’s getting lost is that NFT ownership can entail a whole lot more than an appreciating asset. This is arguably what most still think NFTs are. As mentioned, wearables such as sneakers and t-shirts are NFTs, and they don’t cost millions. However, they do level you up in the metaverse.
Additionally, it’s also important to remember that the vast majority of NFT collections first go on sale for around 0.06/7 ETH to mint one, or around $250. It’s the ensuing hype and secondary sales that inflate the price as those that missed out at the minting stage try and scoop one up on the secondary market.
On the flip side, we have more complete NFT collections like BAYC that not only provide buyers with an Avatar but also wearables and exclusive merch for being a part of the community. The recent trending dapps report further highlighted the trend. October’s top NFT collections all have a function beyond a simple digital asset. MekaVerse particularly stands out as a collection that hopes to give owners the ability to print 3D models of the Mekas in the future.
“The demand we’re seeing for the Meka project — especially considering the negative press — signals that NFT buyers are becoming more sophisticated and forward-thinking, that more and more investors are cottoning on to the fact that NFTs can materialize beyond the digital world. That, ultimately, the NFT concept is widely applicable and that it could change the way we transact, interact, own, live.” Skirmantas Januskas, CEO, DappRadar
Social media has revolutionized our world. However, compared to the impact of the metaverse, social media will simply pale into insignificance. It will be a whole new world that we did not know before. Our real-world is moving into virtual reality, giving us a wide range of possibilities. And it is advisable to prepare for this world today.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in ETH, BTC, NIOX, AGIX, MATIC, MANA, SAFEMOON, SDAO, CAKE, HEX, LINK, GRT, CRO, OMI, GO, SHIBA INU, AND OCEAN.