In the last two or three years, the NFT market has gained much popularity. During the pandemic, it faced exponential growth, and now, it keeps expanding. The NFT market is what helped artists and creators survive COVID-19. Businesses, in turn, also grasped the power of NFT and started creating and trading them to gain profit.
NFTs have already existed in as early as 2014. But at that time, little was known about this notion. The true phenomenon of NFT was documented at the end of 2021 when the art piece titled “The Merge” was sold about 30,000 times, raising a sum of $91,8 million.
Now, it’s the best time to jump on the bandwagon and start earning money without leaving your home. For this, you need to explore how NFTs are created and how much investment it will require from you.
In this paper, we answer the question “How much does it cost to create an NFT?” We also talk about the factors shaping the NFT cost and guide you through all the aspects to consider before planning out the process.
What Is NFT?
Prior to discussing the cost to mint NFT, let’s delve into the essence of digital assets. Before the emergence and growth of NFT, online trade has been quite a popular activity. Users were purchasing and selling digital assets. The thing was there were no regulations for such a process.
Besides, there were no security measures that would protect and verify the ownership of a digital assent. After the invention of NFTs and blockchain technology, the situation changed dramatically. Users got the chance to certify their ownership of digital assets and benefit from the encryption process.
To put it simply, the function of an NFT, which stands for a non-fungible token, is to certify the ownership of digital assets. A digital asset can be anything from music pieces and paintings to images, photos, games, VR assets, and more.
The cost to create NFT varies from case to case. Each NFT contains unique metadata coded and stored on digital ledgers with the help of blockchain technology. The unique metadata certifies one’s ownership of a product and the uniqueness of a digital asset.
By 2027, the NFT market is expected to reach a revenue of $3162 million. which is twice as much as in 2023. Why is it so popular? Because of the unique value each NFT bears. When someone creates an NFT, its file is uploaded to the blockchain. Then, the data on the asset and the creator is coded as an NFT which can be sold, purchased, showcased, etc.
Important Terms When Evaluating the NFT Costs
In the domain terminology, NFT creation is called NFT minting. The NFT minting costs depend on the steps involved in the process. Everything starts with deciding on the type of NFT and its essence. Then, you should choose what technologies and tools you will use to create a non-fungible token.
To predict the cost to mint NFT, you should be well acquainted with the NFT’s fundamentals. The essential terms to be aware of include:
NFT minting
As we’ve said above, NFT minting is the process of creating an NFT. To create an NFT, you will need to create a unique digital asset of your choice. For instance, digital artwork, a photo, a music piece, a unique weapon or skin in an online game, etc. Then, you should prepare your user account in the marketplace and the crypto wallet for further minting and showcasing your NFT product. It will help you better understand the cost to create NFT.
Hereafter, you will upload your asset file to the marketplace and create the metadata code. After you complete this, your NFT will be accessible to the marketplace users and displayed in listings. You can also invest your time and money into promoting the product to attract as many NFT collectors as possible.
Cryptocurrency
This is the currency in the digital world used to pay for the assets. With cryptocurrency, you will pay the cost to mint NFT. You will also use the cryptocurrency to buy, sell, promote, and mint NFTs. It’s important to choose the cryptocurrency that is supported by the popular NFT marketplaces.
Crypto wallet
When creating an NFT, you will have to use a crypto wallet. A crypto wallet is your personal wallet where you keep your cryptocurrency and store the keys to your digital assets. You need to choose a crypto wallet that is compatible with NFT marketplaces. Popular NFT marketplaces support numerous wallets.
User account
Before estimating the NFT minting cost, you will have to sign up in an NFT marketplace and create your personal user account. Also, you should connect your crypto wallet to the account. After completing these steps and paying account fees, you will be able to buy and sell NFTs and take an active part in the trading process.
Blockchain
This technology plays a vital role in determining the cost of creating NFTs. Blockchain is growing in popularity because of the effectiveness and security it can provide. Under blockchain technology, every transaction is broken down into pieces and distributed across the network of computers composing the blockchain. The blockchain consists of multiple blocks, each containing a number of transactions.
Once a new transaction is completed, it’s added to the user’s blockchain ledger and distributed among the blocks. With such a system, it’s impossible to hack, modify, or duplicate the code. It’s segmented across multiple systems and even if one has access to one of the blocks, it’s impossible to identify and harm the rest.
NFT marketplace
NFT marketplace is similar to regular marketplaces where people sell, buy, and showcase their products. The difference lies in the fact that NFT marketplaces are dedicated to trading NFT products only. Usually, an NFT marketplace is connected to many blockchains and allows people to mint NFTs on their platforms. When you mint NFT, you create a unique token for it on the blockchain. Also, the typical currency on the NFT marketplace is cryptocurrency, which makes it a very convenient option for expertized online traders.
Factors Shaping the NFT Minting Cost
The cost to create NFT can vary from $0.01 to thousands of dollars and depend on the technology you use for the creation process, minting fees and other fees to pay, etc. The biggest fee is usually the one paid for the use of blockchain technology.
At a time of high demand, creating an NFT with the help of the Ethereum blockchain can cost you up to $500. Other factors that can affect the NFT costs include the data size, the time of minting, and the transaction speed.
Here are the main factors that determine the cost to make NFT:
Gas fees
A gas fee is the cost to create NFT paid for using blockchain technology. In other words, gas fees are charged for the transactions you execute with the help of blockchain. The more overloaded the technology is at that particular time, the higher the gas fee you pay for using it. Each step involving the use of blockchain will be accompanied by a transaction fee. For instance, when you mint an NFT, transfer the NFT ownership, put your NFTs on listings after paying the listing fees, accept the bidding, purchase NFTs, and more.
Marketplace fees
NFT marketplaces can charge marketplace fees for using their platform. Typically, it’s a one-time fee you pay when registering your account and connecting a crypto wallet to it. Also, some of them charge a marketplace fee for listing NFTs.
These are the main fee types to consider when creating NFTs. All of the fees should be taken into account when planning out the process. To avoid unexpected NFT minting cost and be aware of all the pitfalls, refer to NFT creation consultants for help. They will guide you through the minting process from start to finish and advise you on the best technologies and tools to promote your assets and get the best return.
How Much Does It Cost to Create an NFT on Different Platforms
NFT marketplaces are used to create and showcase NFTs. Among the well-known NFT marketplaces, we can mention OpenSea, Mintable, Rarible, and others. On these platforms, you can choose between two or more blockchain options to create NFT. Your choice will determine the overall NFT cost on these platforms.
The blockchain options are diverse as well. However, we recommend using the trusted ones. Ethereum blockchain is one of these options.
Ethereum has been the first blockchain technology that allowed for the registration and spread of digital assets. As of now, it’s the most expensive minting option because of the Proof of Work (PoW) verification method. Under this mechanism, there are two key roles: provers and verifiers. In the PoW, a prover proves to a verifier that a specific volume of the computational effort is extended. The function of verifiers is to verify the expenditure by utilizing the minimal effort possible.
The NFT creation cost with the help of Ethereum will depend on the time of initializing the transaction and the market value of Ethereum. Typically, Ethereum records from 12 to 15 transactions per second. Creating NFT on this platform will cost you around $70 but during peak hours, the cost can even reach $500.
Other validation methods implemented in blockchain technology and smart contract development include Proof of History (PoH) and Proof of Stake (PoS). By the way, Ethereum is now attempting to shift from PoW to PoS. Proof of Stake is a verification method under which the selected verifiers verify the transaction, while Point of History is based on recording the approximate time of the transaction. These historical records are then used to enable up to 65,000 transactions per second.
There also are options offering a lower cost to make NFT. As for the cheaper example of blockchain technology, Solana is among the ones charging about $0.01 for creating NFTs. Plus, the marketplace fee and the listing fee (usually it stands at 2.5% to 5%).
When estimating the NFT minting cost, consider the transaction time as one of the most determining factors. The transaction time has a direct influence on the expenses. For example, if you launch minting during the busy period, the cost to mint NFT will be high. So, when choosing between different blockchain technologies, you should keep this factor in mind. Our IT consulting specialists can instruct you on the best way to create NFT at an optimal cost.
Can You Create an NFT for Free? Tips to Cut the NFT Creation Costs
There is such an option, and it’s a good opportunity if you are minting an NFT for the first time. It’s provided by platforms like OpenSea or Rarible, enabling users to create and list NFTs for free.
In the digital world, it is known as lazy mining. In that case, you are required to pay all of the fees only when your NFT is sold. Also, you will have to pay 2.5% of the NFT’s price tag. Prior to this, your NFT is published “off-chain” (meaning outside of the main blockchain) and exists only on the marketplace servers. When you sell it, it moves to the main blockchain.
So, under the lazy minting approach, you create a “ticket” to the NFT that leads to it once being purchased.
Another method of cutting the NFT minting cost is gasless minting. Under this method, you skip the part where you pay gas fees for minting your NFT. The method is similar to lazy minting. The difference lies in the fact that gasless minting enables you to place your NFT on the main blockchain immediately without submitting transaction fees to the blockchain. Both methods can significantly reduce the cost of minting NFTs.
Conclusion on NFT Cost
In this article, we answer the question “How much does it cost to mint an NFT?” As you see, the price for creating an NFT depends on numerous factors. Sometimes, the best blockchain options charge higher fees, which is why it is hard to find the optimal minting option.
To consider all the factors and plan your route efficiently, you can refer to our team for help. Here at Forbytes, we provide consulting and blockchain development services for both emerging and established businesses. We will gladly help you with choosing the right tools and technologies and customizing the NFT creation process to your needs and budget.
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