Why Is Cryptopunk So Popular And Expensive?
In 2021, NFT became so famous around the world. CryptoPunk is among the most popular and expensive digital art in the NFT world. Now, Why Is Cryptopunk So Popular and Expensive?
The price of the Punk artwork took a tremendous increase gaining massive popularity. The digital avatars were bought and sold in the NFT marketplace for 100s of 1000s of dollars. CryptoPunk makes 3/5 most expensive NFT sales.
In the past, museum art was so famous. We have seen unbelievable auction prices for the painted art of “Mona Lisa.” But with the progress of technology, art has also progressed. Now art has become digital. The physical portrait artists also create these arts and have sold them for high prices.
What is CryptoPunk?
CryptoPunk was launched back in 2017 by Larva Labs. The co-founders of Larva Labs, Matt Hall, and John Watkinson, created CryptoPunk. Larva Labs was a software company that had developed a few games and applications. The company created CryptoPunk arts of humans with randomly generated attributes through blockchain technology. They did not know that these pixelated portraits could be a game-changer in the NFT world.
Cryptopunk has 10,000 uniquely generated characters of 24×24 pixels. Each character is unique and different from others because they were created algorithmically using computer codes. No two characters are alike because of computer codes. Most CryptoPunk characters are portraits of males (6039) and females(3840). However, few are also aliens(9), zombies(88), and apes(24).
As characters can not be the same. Some have caps, some have a headband, some have shadows, some are smoking, and many are wearing gold chains.
Firstly they were released for free. Anyone with an Ethereum wallet can claim them. An Ethereum(ETH) “gas fee” was the total cost to claim a punk. It was because of the negligible use of Ethereum and very little knowledge about NFTs.
Now they have overtaken the market with their high prices. The buyers are rushing around these avatars. Even the celebrities have invested in them, including Snoop Dog, Jay-Z, Odell Beckham Jr, Serena Williams, and American entrepreneur Gary Vee.
Why is CryptoPunk so Popular?
The popularity of CryptoPunk is because of the following reasons.
High Demand
The simple reason for CryptoPunk’s popularity is the surging interest in NFT. People are interested in buying these arts. The community is investing money in these rare arts. There are only 10,000 pieces of CryptoPunk art. So everyone wants to get a single one.
Interest
Continuous interaction in the community is also another reason for its high popularity. The platform has made over $200 million in transactions since its release in 2017. The investors are interested in paying a huge amount for buying these arts.
Rarity
Another big reason for the popularity is the rarity of the arts. Only a few people can buy them because of the limited number of arts.
The work of the creator can not be replicated or stolen. Unique IDs and their metadata can verify the authenticity of the creator.
The rarer the CryptoPunk, the more expensive it is. The resale of CryptoPunk is very high. People are also purchasing to sell them with a profit margin in the future.
Old and Prestigious Art
CryptoPunk is considered valuable because these arts were the first in the NFT art collection ever created on the blockchain.
Like physical artwork, the art price increased over time. CryptoPunk is the oldest digital art in the world of NFTs.
Future Art
The world is going towards bitcoin and crypto. So anything that has a bright future in NFT is CryptoPunk. They are already popular and in demand in the market. The arts are selling at higher prices than ever.
Metadata of CryptoPunk
The metadata of the punks is an additional factor of popularity. Details of CryptoPunk saves on the Blockchain. The core of NFT includes the name of punk, traits, description, link to the image, and detail of their existence on the Ethereum Blockchain, increasing its popularity.
Why CryptoPunk Is Popular In Terms Of Value?
CryptoPunk is valuable because this is the first on the Ethereum Blockchain. Yes, it is the first NFT collection ever created in the blockchain.
The other reason for their high value is there are only 10,000 CryptoPunk. It means only a few people can buy these arts. Their limitations increase their demand and value in the NFT marketplace.
CryptoPunk Is Worth Buying
Yes, CryptoPunk is worth buying. Because its value increases over time. People are investing in NFT artwork.
Buying CryptoPunk can be profitable for you. You can sell it with a high-profit margin in the future. There are high chances of increasing its worth. However, CryptoPunk prices may decrease if the hype about NFT decreases.
Why is CryptoPunk Expensive?
The simple reason for this is the scarcity of punks which makes them expensive. Another reason for high prices is called by economists a bubble. What economists call a bubble, investors buy things for a profit and sell them shortly at a higher price. This process pushes the prices up in the market. Bubbles mostly happen when a new technology emerges.
The interest of investors in the punks is making it expensive. Also, the limited list of punks is a big factor in their expensiveness.
CryptoPunk has made sales of $1.94 billion since its release from total sales of 7868 Punks. The highest value of sales for 24 hours is $795k.
The Rarest CryptoPunk
CryptoPunk 2140 is one of the apes (24) punks. This character is one of the rare art with two attributes.
The other rare punks are from the ape and aliens’ list. Their short number of punks is not the only factor that makes them rare. But the main thing is their attributes which make them rare from the other. The investor buys them for their attractive look.
Most Expensive CryptoPunk
The most expensive CryptoPunks(at the time of writing the post) is CryptoPunk #5822. This punk sold for $23.7 million. Deepak Thapaliyal purchased the art. He is the CEO of blockchain infrastructure company “Chain.” He confirmed his purchase by tweeting shortly after owning the Punk.
Before this, the most expensive CryptoPunk was CryptoPunk #3100. This punk is ultra-rare CryptoPunk of alien. The character has a single attribute which is a simple headband. Punk was sold for $7.67 million at Sotheby’s auction.
Cheapest Cryptopunk
The lowest price for punk which is currently for sale is 54.9 ETH ($139,544.82 ).
Currently, the average bid is 1.96 ETH($4987).
Where You Can Buy a CryptoPunk
Suppose you are interested in buying the punk at the NFT marketplace. First, you need to set up a cryptocurrency wallet like Meta Mask.
When you set up your Meta Mask wallet, you need to recharge the Meta Mask wallet. You have to recharge Ethereum in the wallet. You can buy Ether from Coinbase.
After recharging, download and install a browser plugin called MetaMask. This plugin will allow website access to your Ethereum account.
After installing the plugin, the website can recognize your account and will add a button for buying and selling the punks.
Along with knowing, Why Is Cryptopunk So Popular and Expensive, also look into:
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- 10 Nightmare Risks And Challenges In Dealing With NFTs
- How To Create NFT And Sell It Safely?
- How to Create an NTF Art and Make Collection?
- List Most Expensive NFT Sold Till Date
- How Opensea NFT Marketplace Can Help Me Onboard?
- What Are NFTs And How Do They Work?
- How To Create NFT & Sell NFT On Binance?
- What Are 11 Racy Different Types Of NFTs You Can Create?
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