How is the value of an NFT determined?

Consider looking at things like ownership, utility, rarity, and social proof when determining an NFT's value. Understanding the valuation matrix There is no set of guidelines for evaluating the value of an NFT. Traditional investment vehicles, such as stocks or private companies, simply cannot be assessed using the same criteria as NFTs. Typically, the final buyer's payment provides some indication of the value. However, based on their estimates, it is difficult to determine what the subsequent buyer might pay for NFTs. The majority of buyers are unable to logically determine the value of NFTs, so they base their quotes on guesswork. It is difficult to estimate what sellers might receive for the tokens they hold. The perception of a factor over which buyers and sellers may not have any control influences the value of NFTs over time. Using an example can help reinforce the point. It's possible that an NFT of an artwork will be in high demand for some time, leading potential buyers to believe it to be rare and anticipate that it will fetch a high price soon. Then, all of a sudden, they might realize that the digital image is free to download from the Internet, and the NFT might no longer be wanted.