Busting crypto myths: NFTs are only for the wealthy

Since the crypto market took off in 2021, many non-fungible tokens (NFTs) are now changing hands for dizzying sums of money. To date, the ten most expensive NFTs sold at auction have fetched between $7 million and $91.8 million. That’s higher than the average price of Claude Monet’s artwork ($80.5 million) and many other pieces of prestigious physical artwork.

The stratospheric price tags of the most valuable NFTs can give the impression that the entire space is only accessible to a select minority of super wealthy individuals.

However, these headline grabbing outliers are not representative of the NFT space. The vast majority of NFTs are far more affordable than you might think. As the NFT market has continued to expand and mature, hundreds of collections have come to market. Each one offers all of the excitement of the top NFT collections, but at a far more attainable price point for everyone.

The truth behind the data

While it is certainly true that some NFTs have sold for tens of millions of dollars, the vast majority of NFTs trade for far less.

According to Statista, the average floor price of all Ethereum-based NFTs fell over most of 2022. From 2.82 ether (ETH) in February, to around 0.77 ETH in November. Floor price refers to the price of the least expensive NFT available for purchase in each collection. While floor prices do not necessarily correlate with sale prices, this shows that the barrier to entry into the NFT space is far lower than many appreciate.

Nonfungible.com’s Quarterly NFT Market Report Q3, 2022 tells an even clearer story. Across multiple blockchains, the average sale price for an NFT between July and September 2022 came out to just over $150. That’s lower than most people spend on streaming services each year.

This illustrates that nearly anyone can begin their NFT journey at a reasonable price point.

Community is everything

NFTs aren’t just about high price tags and exclusivity. In many respects, they aren’t solely about the images the NFTs represent either.

Many NFT collections have communities that are equally as vibrant and energetic as any other online community, like a video game forum or a sneakerhead site. Joining one of these NFT communities doesn’t require a huge buy-in, as many affordable NFTs also have their own highly engaged online communities. Virtually all NFT collections will have their own Discord channels for prospective buyers and current NFT holders to connect with one another.

NFT communities play an instrumental role in driving demand and interest for their respective collections. In some instances, communities have spun up their own private platforms and social media channels for holders. This feature adds a new layer of value and utility for NFT holders to enjoy. Within these communities, people can gain access to exclusive opportunities such as new upcoming NFT launches and in-person events. They can also network with like-minded individuals as they share their passion for the NFT collection with people all over the world.

If you want to learn more about the importance of community in the NFT space, check out our recent blog post Why buy an NFT: Community membership.

The stronger the community presence, and the more perks the NFT collection offers, the greater the possibility of it joining the “blue-chip” cohort. Blue-chip collections represent the upper echelons of NFTs, generally represented by the most valuable, well-established, and longest-lasting non-fungible assets.

CryptoPunks, Bored Ape Yacht Club, and Azuki, are all widely considered “blue-chip” NFT collections.

Blue-chip collections earn most of the headlines in today’s NFT market. But, there are plenty of existing collections with thriving communities and affordable floor prices. There is, of course, no guarantee that these collections will achieve the same success as some of the leading blue-chip collections. However, these lower cost NFTs can be an easier place to begin your journey.

Check out some of the affordable NFT collections available on Kraken NFT in the table below:

These figures are accurate at time of posting and subject to high market volatility. This term means prices can change often. Check out our Ethereum price page or Solana price page for real-time fiat conversion rates.

Getting in early

One possible way of entering the hallowed halls of future blue-chip NFT holders is by buying non-fungible tokens in presales or during public mints.

Presales

Presales are the earliest way to purchase NFTs from a new collection. With these types of sales, you are guaranteed to mint an NFT before the public sale takes place.

NFT projects add presale participants to their respective whitelists/allowlists. These lists contain a small number of pre-approved crypto wallet addresses that have exclusive access to mint NFTs before anyone else.

Every project has its own process and criteria for presales. This process can include engaging with their social media posts, inviting friends to follow their channels, and demonstrating active participation on a Discord server.

For higher profile NFT projects, there can be more costly prerequisites, such as owning specific NFTs from particular collections. That said, presale opportunities are a great way to grab NFTs at a lower cost before a true fandom develops.

Public mints

Public mints are the next best thing after a presale. Public mints go live immediately after the NFT collection launches. Anyone can participate in a public mint and there are no exclusive or costly prerequisites to participate. When the famous Bored Ape Yacht Club NFT collection first launched, investors could purchase NFTs in the public mint for 0.08 ETH. The current floor price for one of these NFTs on Kraken NFT is now around 58.98 ETH — a staggering 73,625% increase at publication time.

Public mint prices can be higher than presale prices and everyone must compete for a chance to mint an NFT. With hotly-anticipated collections, high demand can often lead to significant increases in gas fees, sometimes called “gas wars.”

Gas wars occur when a high volume of prospective buyers battle it out for a limited number of NFTs. To win, investors must be willing to pay a higher gas fee than others to make sure their transaction is processed. If they don’t, they risk their transactions failing and losing their attached gas fee. Often, it’s not uncommon for investors to lose thousands of dollars in gas fees during these types of NFT gas wars.

Looking for an affordable NFT?

It’s easy to join the NFT market, even if you don’t have a lot of money.

There are new collections every day, so there is always a chance to get in on the early-stage community. To see the most affordable NFT collections available on Kraken NFT, check out our collections page. There, you can find hundreds of NFTs that are under $100 each.

All of these NFTs offer access to their own vibrant and exciting communities — regardless of how wealthy you are. Kraken NFT makes it easy to join in the excitement and find the community right for you within the NFT space.