Non-Fungible tokens (NFTs) have been on a meteoric rise in popularity and value over the past year as the art and collectibles market keeps growing. With recent sales of NFTs that cost millions of dollars, it’s easy to become dizzy trying to understand what drives their prices up.

What's an NFT?

Non-Fungible Tokens (NFTs) are digital items that exist on blockchains and have unique characteristics, such as ownership verification, scarcity, and rarity. A non-fungible asset is distinct, contrasting with a fungible asset which is replaceable, exchangeable, and interchangeable. NFTs come in many different forms, including art, digital collectibles, and even video game items.

NFTs are becoming increasingly popular as a way to purchase and own digital assets. They are also being used to create digital scarcity, allowing creators to monetize their work in a way that was not possible before. NFTs are also being used to create digital collectibles, allowing users to own unique digital items that can be traded and sold.

NFTs are also being used in context with digital marketplaces, allowing users to buy and sell digital assets in a secure and transparent way. This is creating a new economy, where digital assets can be bought and sold with ease. NFTs are also being used to create digital art, allowing users to own unique pieces of art that can be displayed and shared with others.

What's the value of an NFT?

The value of an NFT is determined by a few different factors. These include the intrinsic value of the asset, which can include both its rarity and unique attributes, as well as its demand. As with any asset, one’s investment risk should always be carefully evaluated prior to any purchase.

The value of an NFT can also be affected by the platform it is hosted on. Some platforms may have higher fees or more stringent rules, which can affect the overall value of the asset. Additionally, the market for NFTs is still relatively new and can be volatile, so it is important to do your research and understand the risks before investing.

Top 5 Most Expensive NFTs Sold in 2022

2021 was a remarkable year for Non-Fungible Tokens (NFTs), as the sale of digital assets skyrocketed and made headlines with record-breaking sales.

Come January 2022, a dramatic drop in NFT was detected. Moving from Q2 to Q3, this seemed to intensify with USD 3.4 billion in NFT sales made during the third quarter - plunging drastically from its peak first-quarter performance at USD 12.5 billion! It appears that after an explosive 2021, this lull will continue into 2023.

Reflecting on the past year, we have compiled a selection of some of the most expensive NFTs that were sold in 2022.

5. All Time High In The City: USD 6.2 million (Rs 50 crores)

In January of 2022, the fervor for Non-Fungible Tokens (NFTs) was at its peak; this resulted in XCOPY's All The Time High In The City being sold for an astonishing USD 6.2 million on SuperRare to a mystery collector known only as rarecollector3000. This came out to 1630 Etherum (ETH), marking quite possibly one of the most prestigious NFT purchases ever made!

The NFT is a red and black animated graphic design of a boatman delivering someone across River Styx, symbolizing the underworld.

XCOPY's artwork stands out in the NFT space, featuring a dread-filled dystopia. Indeed, this artist is responsible for another successful and expensive NFT – Right-click and Save As guy – which was sold for an impressive USD 7 million earlier this year.

4. UkraineDAO PartyBid: USD 6.7 million (Rs 54 crores)

This particular NFT sale should be given a special spotlight due to the impressive USD 6.75 million it managed to generate under such unique circumstances.

On the seventh day of Russia's invasion in Ukraine on 2 March 2022, devastating circumstances for its people loomed. Then a collective effort emerged: Nadya Tolokonnikova from Pussy Riot, NFT Studio Trippy Labs and members of PleasrDAO came together to create UkraineDAO - an automated decentralised organisation designed to provide relief with ration and essential supplies. This collaboration was instrumental in helping Ukrainians cope with this crisis.

Ukrainian citizens came together in an incredible show of unity and generosity to support a fundraising effort via PartyBid. An NFT featuring the Ukrainian flag was auctioned off, with 3,271 contributors submitting bids - the winner receiving ownership of this special token. The funds raised were donated to Come Back Alive – an organization providing essential supplies for people living in Ukraine. This powerful initiative serves as a shining example of how we can come together during tough times!

3. Cryptopunk #5577: USD 7.7 million (Rs 62 crores)

Another rare Cryptopunk, #5577 was sold for 7.7million US dollars (Rs 62 crores) in 2022. Cryptopunks have been modelled after different punk characters and have seen their value increase since they were originally created. This particular NFT is one of a set of only 24 ape-looking punks.

The sale of Cryptopunk #5577 has been seen as a major milestone in the world of non-fungible tokens (NFTs). It has demonstrated the potential of NFTs to be valuable digital assets and has sparked a surge of interest in the NFT market. As more people become aware of the potential of NFTs, the demand for rare and unique digital assets is likely to continue to grow.

2. Cryptopunk #5822 USD 23.7 million

The most expensive Cryptopunk NFT to date, a piece featuring an alien donning a blue bandana was sold for an astonishing USD 23.7 million in February 2022 to Chain CEO Deepak Thapliyal. This rare punk is part of the exclusive alien punks series and is among the most valued artifacts in digital art history.

With its rare alien punk series and one of only 333 cryptopunk NFTs with a bandana, this expensive crypto asset is worth every penny. Cryptopunks are rare digital collectibles created with the use of non-fungible tokens. These collectibles possess distinct features and visuals which can be found on various virtual platforms, making them a valuable asset that could potentially lead to future gains.

1. Clock: USD 52.7 million

In 2022, the most expensive NFT sold was known as the clock. It was created by artist Pak, who is known for his digital art pieces. The clock was sold off at auction for 52.7 million US Dollars.

The NFT does not resembly a clock, but it is still greatly impacted by the concept of timekeeping. The initiative was set into motion in 2019 to count the number of days that Assange was detained at Belmarsh Prison on espionage charges. All proceeds from its sales were then used for his legal expenses and fight against these accusations.

Unveiled as a part of the Censored collection, which contains 29,000 NFT messages, Clock was sold to AssangeDAO – a DAO having over 10 thousand patrons who contributed funds for its sale. Clock's sales brought in an incredible $52.7 million and given to Wau Holland Foundation that supports Julian Assange’s defence fund.

The Most Expensive NFTs Ever Sold

Merge: USD 91.8 million

Pak is an extremely successful and well-known figure in the NFT universe, having created some of the most expensive NFTs ever sold. His Merge artwork from late last year is a standout and deserves applause for its distinguished success.

Emerged in December 2021, this NFT continues to hold the highest ranking for 2022 as the most costly of its kind ever sold. A jaw-dropping USD 91.8 million on Nifty Gateway! Pak has smashed his competition with a colossal margin and elevated new levels of success in NFT transactions.

Everydays: The First 5000 Days: USD 69.3 million

Mike Winkelmann, otherwise known as Beeple, is an NFT art creator of note. His portfolio contains a significant amount of expensive non-fungible tokens (NFTs). Most notably was his Everydays: The First 5000 Days which sold for the second highest NFT price to date at Christie's first full digital artwork sale.

Beeple devoted over 13 years to creating this now iconic piece — consisting of 5000 small images. This artwork catapulted the entire nonfungible segment into mainstream recognition and is hence worth its hefty price tag. As reported by Coinscreed, an anonymous buyer purchased it and was later identified as Vignesh ‘Metakovan’ Sundaresan.

Some closing thoughts

As the NFT market continues to expand and evolve, the sale of these non-fungible tokens will continue to set new records, especially when we hit the next bull run. With the emergence of more innovative artists, unique works of art, and collaboration between different platforms, we will likely see even higher sales in the future.

And it's not just NFTs that hold significant value. You can check out a similar article talking about the most expensive ENS Domains ever sold.