With the total NFT trades amounting to nearing 68 million, we can firmly say that people have begun adopting new-gen technological marvels. With the buzz around creating NFTs becoming as much as creating content for social media, it is essential to know the cost to make an NFT. We will focus on this topic in this blog with insights from our experts, who have been in the field for over seven years. Whether you are a hobbyist, an aspiring creator, or someone who wants to cherish valuable moments in your life, brace yourself to know more about the cost to create an NFT.
NFTs: Not a Recap
By now, you might have known what an NFT is and how it helps preserve the uniqueness of digital and physical assets using blockchain technology. While NFTs might not have fervent support, unlike 2021, the promise they gave the world still lives on. More creators and brands tap into the magic of NFTs as a way to redefine how they approach a consumer market that has become more tech-savvy.
Their market cap has crossed 2.7 billion dollars with an all-time sales volume amounting to nearly 55 billion dollars. Such statistics show how NFTs have impacted the mainstream world in more than a million ways. The scope for NFTs has extended so much that almost anything can have an NFT attached to it, reinforcing its authenticity and value.
Factors Involved in Deciding the Cost to Make an NFT
If you plan to create an NFT, there are a lot of factors that have a say in its cost:
- The blockchain used
- The niche of NFT
- The number of NFTs
- The file size
- The level of creativity required
- Smart contract development
- Costs associated with the NFT marketplace
We will see each of these in detail in the upcoming sections.
A crucial factor dominating the cost to create an NFT is the blockchain the NFT will be based on. Based on what network you choose and the user congestion level, prices can vary from a fraction of a cent to over a hundred dollars. The fees levied by the blockchain will be used to incentivize validators who process the transactions.
Ethereum remains the most popular blockchain network to create NFTs due to its longevity, established developer community, and user base. But, transaction fees on the network are usually higher because of high user activity.
On the other hand, layer-1 networks like Solana, BNB Chain, Cardano, and Avalanche charge way less for transactions while offering faster processes, making NFT development an easy endeavor. One can even utilize layer-2 solutions like Polygon, Arbitrum, and Optimism to escape the burden of transaction fees while enjoying high processing speeds.
The niche of the NFT you aim to create also plays a major role in the cost. For example, if you are an artist and you plan to mint an NFT representing your artwork, associated expenses will be lower. In case you are a business owner planning to create NFTs representing sports collectibles, the costs involved can increase as many people will be involved.
If your NFT intends to represent real-world items such as real estate, antique collectibles, or exclusive beverages, we need to consider the costs associated with documentation and legalities. Broadly speaking, the overall costs based on niche can vary from zero to thousands of dollars.
Number of NFTs
The cost to create an NFT also depends on how many NFTs you plan to mint in the first place. You are free to mint a single NFT or millions of them as a collection. Obviously, creating a single NFT will be less expensive than creating an NFT collection.
When we speak of NFT collections, we should also bring into consideration the pool of traits individual NFTs will contain that defines their rarity. Based on the diversity of traits you want to include, the cost of minting an NFT collection can increase further.
We know NFTs support various file types, including those associated with images, animations, videos, music, and GIFs. But one thing that is of importance is the minting cost can vary according to the size of the file containing the NFT representation. The bigger the file, the higher the price for creating the NFT.
Apart from the costs to create the NFT, we should also consider the format’s compatibility for various platforms like web browsers and mobile devices. More flexible file formats are essential if you want your NFTs to reach the widest possible market.
An underrated factor in deciding the cost to create an NFT is the creativity expertise required to form it. Things get easier for creators, though, as creative work will be accomplished by themselves. But if the NFT creation process is for a business, costs would ramp up depending on the business’s requirements.
One can hire artists, writers, musicians, and designers from global freelancer networks, and the prices they charge can vary widely. Factors such as experience, popularity, creativity level, technical expertise, and work intensity determine the costs of creating NFTs using external players. You can also work with our NFT studio, which has a team of skilled creatives who can bring your dream NFTs to life.
Bring Realistic and Awe-Inspiring NFTs Alive with Our Excellent Team of NFT Creators!
Smart Contract Development
While we saw the role blockchains play in deciding the cost of NFT creation, we never saw how smart contract development contributes to the expenses. As we know, smart contracts facilitate the storage of the metadata of NFTs and help in accessing them. Similar to the last section, you can either opt for freelance developers or work with our experienced NFT development team.
The blockchain, the token standard, and the complexity surrounding the NFT decide the costs levied for creating smart contracts. With our team of seasoned developers, you can develop NFTs with everything you need in most blockchains at competitive prices.
NFT Marketplace Costs
The cost to mint an NFT tends to rise to new levels when we consider the expenses associated with putting it for sale. NFT marketplaces remain the popular option as they have a thriving user base, which we can tap into. As for the costs involved, different marketplaces work differently.
Generally speaking, NFT marketplaces levy fees for minting NFTs (if using their minting engines), listing for sales, promotions (from the marketplace), and transactional charges. Except for the latter (which is mostly a percentage of the selling price), the rest are fixed values that have to be paid upfront.
Thus, we have seen the factors that influence the cost to mint an NFT. While defining a definitive cost for NFT creation is not possible, we can conclude that the process incurs anywhere from tens to thousands of dollars. The complexity involved in creating and selling the NFT, technically, creatively, and business-wise, contributes to the total cost. If you want to create NFTs with unique elements within a budget, nothing is better than working with our NFT development experts at Blockchain App Factory. Our skills in all facets of NFT creation allow you to delve into the digital world without hassles. Begin consulting with one of us today by filling out the form below.