How do NFTs gain value?

Asked 24-May-2022
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The value of an NFT is determined by consumer interest, just as it is for pieces in our hypothetical art collection. The scarcity and number of interested purchasers are important elements in determining how much they are worth, just as they are with trading cards.
The value is determined by four key factors:
Utility: how it is utilised, such as a gaming token.
If the token was developed by a prominent person or business name, the ownership history plays a role.
Future value: the prediction of where the NFT will move over time.
Liquidity premium: the amount of demand for the art with NFTs with increased traffic resulting in higher premiums.