NFTs are the hottest keyword right now in the crypto market. NFTs have attracted millions of users, including those in Vietnam.

Not only that, NFTs are also a great investment opportunity for owners; many NFTs have been traded on the market for hundreds of thousands of dollars or even millions of dollars. Therefore, understanding the valuation and selection of an NFT collection and having NFT trading experience are very important.

Why is it necessary to evaluate before trading NFT?

The NFT market has grown hot since 2021 and shows no signs of stopping. NFT collections are getting more popular and being noticed, and the number of NFT collections released every day is also increasing. So, the evaluation and selection of NFT will also be more difficult. Evaluating an NFT project correctly can be hugely profitable, and to make the process simpler, there are a few criteria to help you select projects.

How to assess the value of an NFT?

Floor Price 

The floor price here is the lowest price for an NFT work in a collection.

The floor price can be seen as a measure of the community's attraction to the project; if the project's demand rises, so will the floor price.

Ceiling Price

The price ceiling is the highest price for an NFT in the collection or the highest price at which the NFT has ever been successfully traded.

The top-priced NFTs in a collection are often the rarest, most popular, and most iconic NFTs of the entire collection.

Trading Volume

The trading volume is an important indicator of the total volume of transactions made, indicating the overall demand for the project. Trading volume can be seen as the most obvious indicator of the popularity of that NFT collection.

Total supply

Total supply refers to the total number of NFTs in a collection. The supply of NFTs also affects the price of the collection. Collections with a low total supply often have a higher price floor due to the rarity of the NFTs.

Rarity Rating

The rarity of an NFT in a collection is determined by the attributes that it possesses. With rare attributes, the rating will be very low. This stat can also tell you how difficult it is to get a particular NFT.

The source of NFT

You can look up the ownership history of NFT as well as the price of each NFT purchase since it was minted using the NFT feature.

Information of NFT project

Creativity and use case

The successful NFT projects so far have involved a creative element and the use cases of NFT. An NFT can have many use cases. The NFT should benefit the NFT's owner or the community.

Team

The project team plays a role in the success of an NFT project. You should learn about the project team and ask a few questions about them such as:

• Background: Have they worked in big companies?
• Experience: Have they ever run a project or a company?
• Crypto-natives: Do they have a lot of experience in the crypto market or the NFT sector?
• Communication, clarity, and transparency: Do they receive feedback from the community? Do they clearly share their vision and future plans?
• Attraction : Are they on the right roadmap? Who do they partner with? Any achievements?

Community

Last but not least, community is almost everything with an NFT project. An innovative NFT project without a community is very difficult to succeed.

See more: OpenLive NFT Digital Certificate for Business

OpenLive NFT Marketplace: Outstanding NFT Marketplace in Vietnam

OpenLive NFT Marketplace preserves Vietnamese works and cultural heritage. With a team of experts with in-depth experience in the technology fields and global crypto markets, OpenLive NFT has a pioneering position in developing the NFT marketplace in Vietnam and Asia.