The market for non-fungible tokens (NFTs) is getting extremely hot at the moment, with market momentum moving in a speedy bull direction.
This has paved the way for an unfamiliar CryptoPunk to be sold for an astonishing $750,000 in the market today. To put this in another way, you will need to have 23 Bitcoins (BTC) or about 605 Ethereum (ETH) to buy this NFT.
Decentralized autonomous organization FlamingoDAO is behind this outstanding CryptoPunk sale. There are very few (actually, about 9) of these rare punks that exist in the entire CryptoPunk world. Non-refundable tokens (NFT) first existed in 2017, and CryptoPunks were the first sets of NFTs that pioneered the market.
The most expensive collection of NFT
Priyanka Desai, the community representative at FlamingoDAO, stated that this is the most expensive NFT in the company’s collections to date. He was speaking to a Coindesk correspondent during a phone interview and said like every other person, his mom expressed shock when she was told.
“I showed my mom and she was like, ‘What???’” Desai told Coindesk.
Cryptopunks is seen as the pioneer of the original NFT project, as they even existed before Cryptokitties was developed.
Larva Labs, who are the developers of CryptoPunks, reported recently that there have been $26 million lifetime sales of Punks on their native marketplace. They added that Punks have been sold for an average price of $6,199 right from the first sale.
Each Punk is different from the other, which makes them very valuable when they are available. Some of the Punks come with different accessories, background color, and even an extremely rare feature, such as a “zombie” or “alien” appearance. Each of the Punks cannot be replicated in the market, which makes them very rare and valuable.
“The Punk that sold today, #2890, is one of nine alien Punks in existence,” Larva Labs reiterated.
NFTs gradually having their day
NFTs have always been placed as the secondary use-case for blockchain. However, sales like this indicate that they may even play a very important role in the market in the future. It only shows the increasing importance and value attached to such assets.
NFT projects such as Axie Infinity’s native critters and NBA Topshot are also selling for impressive prices recently, which indicates that NFTs are gradually having their day in the open market.
While some NFT critics are questioning the rationale behind the astonishing price of the NFTs, others have dismissed the critics, saying it’s a question of satisfying one’s desire and wants. Some proponents also pointed out that there are many real-world scenarios of people paying very much for extremely rare things that make even less sense.