Debunking Crypto Myths: NFTs are only for the wealthy

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

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

However, these headings that capture deviations are not representative of the NFT area. The vast majority of NFTs are far less expensive than you might think. As the NFT market has continued to expand and mature, hundreds of collections have hit the market. Each one offers all the excitement of the best NFT collections, but at a far more accessible price 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.

In accordance Statistics, 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 cheapest NFT available for purchase in each collection. Although floor prices do not necessarily correlate with sales prices, this shows that the barrier to entering the NFT area 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 selling price for an NFT between July and September 2022 came out to just over $150. That’s less than most people spend on streaming services each year.

This illustrates that almost anyone can begin the NFT journey at a reasonable price.

Community is everything

NFTs are not all about high price tags and exclusivity. In many ways, they are also not just about the images the NFTs represent.

Many NFT communities have communities that are as vibrant and energetic as any other online community, like a video game forum or a sneakerhead site. Joining one of these NFT communities does not require a large buy-in, as many low-cost NFTs also have their own highly engaged online communities. Virtually all NFT collections will have their own Discord channels for potential buyers and current NFT holders to connect with each other.

NFT communities play an important role in driving demand and interest for their respective collections. In some cases, communities have built up their own private platforms and social media channels for holders. This feature adds a new layer of value and utility to NFT holders. Within these communities, people can access exclusive opportunities such as new upcoming NFT launches and in-person events. They can also network with like-minded individuals while sharing their passion for NFT collecting with people around 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 benefits the NFT collection offers, the more likely it is to join the “blue-chip” cohort. Blue-chip collections represent the upper echelon of NFTs, typically represented by the most valuable, well-established and long-lived non-fungible assets.

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

Blue-chip collections earn most of the headlines in today’s NFT market. But there are many existing collections with thriving communities and reasonable floor prices. Of course, there is no guarantee that these collections will achieve the same success as some of the leading blue-chip collections. However, these lower cost NFTs may 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 the time of publication and subject to high market volatility. This term means that prices may change frequently. Check out ours Ethereum price page or Solana price page for real-time fiat conversion rates.

Come in early

One possible way to enter the hallowed halls of future blue-chip NFT holders is by purchasing non-fungible tokens in pre-sales or during public mints.

Before sale

Pre-sale is the earliest way to buy NFTs from a new collection. With this type of sale, you are guaranteed to mint an NFT before the public sale takes place.

NFT projects add pre-sale participants to their respective whitelists/permit lists. These lists contain a small number of pre-approved ones crypto wallet addresses that have exclusive access to new NFTs before everyone else.

Each project has its own process and criteria for pre-sales. This process may 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 may be more costly prerequisites, such as owning specific NFTs from particular collections. That said, pre-sale 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 to a presale. Public coins go live immediately after the NFT collection is launched. Anyone can participate in a public mint and there are no exclusive or expensive prerequisites to participate. When the famous Bored Ape Yacht Club NFT collection was first launched, investors could purchase public coin NFTs 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 the time of publication.

Public coin prices can be higher than presale prices and everyone has to compete for a chance to mint an NFT. With long-awaited collections, high demand can often lead to significant increases in gas taxessometimes called “gas wars”.

Gas wars occur when a large volume of potential buyers vie for a limited number of NFTs. To win, investors must be willing to pay a higher gas fee than others to ensure their transaction is processed. If they don’t, they risk their transactions failing and losing the attached gas fee. Often, it is 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’s always a chance to get into the community early. To see the cheapest 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 the excitement and find the community that suits you within the NFT area.