TL;DR
Non-fungible tokens (NFTs) are unique crypto assets used to represent crypto art and digital collectibles. The emergence of NFTs creates scarcity for digital objects and generates huge value for creators and investors.
In this article, we'll take a look at some of the most expensive NFTs sold to date, such as Beeple's Everydays: The First 5000 Days ($69.3 million) and a bunch of CryptoPunks that dominate this list with fantastic prices.
Introduction
NFTs experienced exponential growth in 2021 with thousands of investors flocking to collect digital art in various forms. Some NFT sales have even resulted in record-breaking prices. What are NFTs and why do they have value?
What are NFTs?
Non-fungible tokens (NFTs) are tokens issued on a blockchain to represent a unique asset which can be a document, work of art, music, or even real estate. NFTs are not fungible, as each is a unique digital asset with a unique identifier.
Even though there are two NFTs that look very similar, they are not interchangeable. One bitcoin is equivalent and can be traded for another bitcoin. It's different with NFTs. That's why NFT technology is used to generate proof of authenticity and ownership on the blockchain. NFTs can be entire digital assets such as play-to-earn game items and metaverse lands or tokenized versions of real-world assets.
What makes NFTs valuable?
The value of an NFT is determined by market supply and demand. NFTs are usually easier to evaluate when created as a representation of a physical asset. However, most NFTs exist on-chain, that is, in the digital world.
Each NFT collection has a different supply and each NFT unit can have varying rarities. However, there are several other factors that can determine how valuable an NFT is. For example, limited series NFTs with specific uses tend to become more valuable. The founding team, along with the artists and community, can also influence the demand for NFTs.
In other words, the value of an NFT can be related to its creator, its value in play-to-earn games, or community and market sentiment. There are many cases of successful NFT projects, but there are many more that fail. Make sure you apply DYOR before trading or investing in NFTs and don't use money you can't afford to lose.
The most expensive NFT ever sold
Let's take a look at some of the most expensive NFTs ever sold as of May 2022. The prices mentioned below are based on the time of sale.
1. Everydays: The First 5000 Days - $69,3 juta
Everydays: The First 5000 Days is a digital artwork by American graphic designer Mike Winkelmann, known as Beeple. This NFT sold for $69.3 million in February 2021 and was purchased by NFT investor Metakovan through an auction sale at Christie's.
This NFT is a collage of 5,000 works of art created by Beeple. Since 2007, Beeple began uploading new images to his Instagram feed every day for 13 years. His “everyday” artwork is often set in post-apocalyptic landscapes and usually has some connection to current news or popular culture. This NFT collage can be considered a representation of Beeple's development as a digital artist.
2. Clock - $52.7 million
Clock describes a dynamic timer that counts the number of days that Julian Assange, the founder of WikiLeaks, has been in prison. Assange is involved in a very controversial case. He faces extradition from Britain to the US on several espionage charges and a prison sentence of up to 175 years.
These NFTs were curated by digital artist Pak and Assange himself to cover his legal bills. This NFT was auctioned for 16,953 ETH in February 2022 to AssangeDAO, which is a decentralized autonomous organization (DAO) founded to raise funds for NFT sales. In addition to the ETH used to acquire Clock, AssangeDAO still owns the 17,422 ETH it initially raised to purchase the NFT.
Pak and Assange not only curate Clock, but also allow anyone to create their own NFTs. They can also tokenize censored messages at their own price or for free. The message will change to an image showing the words crossed out as if they are being censored. Proceeds from the sale of this NFT series will go to a pro-freedom organization of Assange and Pak's choice.
3. HUMAN ONE - $28.9 million
Another record-breaking NFT by Beeple, namely, HUMAN ONE is the first physical work of art he created. This NFT was auctioned at Christie's for $28.9 million in November 2021.
HUMAN ONE is a moving 3D statue with 4 digital screens. This artwork features an endless video of an astronaut exploring various places at various times. These hybrid works of art reflect Beeple's artistic ambitions that extend beyond the digital world.
4. CryptoPunk#5822- $23.7 million
As one of the first famous NFT projects, this pixel-shaped CryptoPunk continues to make the list of the most expensive NFTs ever sold. CryptoPunk#5822was sold for 8,000 ETH in February 2022 to the CEO of a blockchain technology startup. This NFT comes from the rarest alien edition. There are only 9 of the entire NFT collection. What makes it even more special is that this NFT is one of 333 CryptoPunks wearing a bandana.
5. CryptoPunk#7523- $11.75 million
The next most valuable NFT comes from the CryptoPunk range as well. Prior to the sale of #5822,#7523was the most expensive CryptoPunk ever sold.
CryptoPunk #7523 was auctioned at Sotheby's for $11.75 million during the COVID pandemic in June 2021. In addition to being an extremely rare alien edition, this NFT is also the only alien to wear a mask. This is what makes buyers like CryptoPunk.
6. TPunk#3442- $10.5 million
Some people consider TPunk to be a Tron version of CryptoPunk with familiar pixel faces that have various rarities and attributes. One of the rarest is this joker-faced TPunk #3442. This NFT was sold for 120 million TRX in August 2021 to Justin Sun, the CEO of Tron. This is the most expensive NFT ever sold on the Tron blockchain. However, Sun did not save the TPunk. He donated it to APENFT immediately after purchasing it.
7. CryptoPunk#4156- $10.26 million
Yes, this is another CryptoPunk in the ranks of the most expensive NFTs. CryptoPunk#4156is an ape with a blue bandana. The previous owner was someone with the pseudonym “Punk 4156” who acquired this NFT for $1.25 million in February 2021. However, he sold this NFT for $10.26 million in December of the same year.
8. CryptoPunk#5577- $7.7 million
At #8, there's another ape-like CryptoPunk, this time with a cowboy hat. CryptoPunk #5577 was sold for 2,501 ETH in February 2022. Although it has not been confirmed, most people believe that the buyer was Robert Leshner, the CEO of Compound Finance who tweeted “Yeehaw” after the purchase was made.
9. CryptoPunk#3100- $7.58 million
CryptoPunk #3100, which sold for $7.58 million in March 2021, is also one of nine rare alien punks to also wear a headband. As of May 2022, this Punk is worth 35,000 ETH. If sold, this would be the largest NFT sale in CryptoPunks history.
10. CryptoPunk#7804- $7.57 million
CryptoPunk#7804is the sixth CryptoPunk on our list. These CryptoPunks are aliens who smoke pipes while wearing cool hats and sunglasses.#7804is owned by the CEO of designer software company Figma who proudly calls it the “digital Mona Lisa.” This NFT was sold for $7.57 million in March 2021.
Where can I buy NFTs?
You can get your first NFT on various NFT marketplaces. Depending on the blockchain network, you will need a compatible wallet and supported cryptocurrency to make purchases. For example, the price of NFTs on the BNB Smart Chain (BSC) is almost always expressed in BNB or BUSD, while NFTs on the Ethereum blockchain usually use ether (ETH).
You can buy the required cryptocurrency on the Binance exchange, then transfer it to a wallet that can connect to the NFT Marketplace.
If you purchase an NFT on the Binance NFT Marketplace, you can simply move funds to the Funding Wallet. Select the desired NFT, then click [Buy Now] or [Make Offer]. Read our NFT Marketplace guide for more details.
If you want to buy NFTs on other marketplaces, browser extension wallets like Binance Chain Wallet and MetaMask are great options. After transferring funds from Binance to your wallet, connect to the NFT marketplace to get started. Don't forget to check the URL you visit to ensure that you are on the official website. If you connect your wallet to a fake or suspicious website, your funds may be stolen.
Closing
NFTs continue to become increasingly popular and set record high sales. While most NFTs are simply collectible works of art, there are a growing number of NFTs being created with a variety of uses. As the NFT industry matures, we can expect more utility and adoption beyond just digital collectibles and even higher sales.
