Skip to main content

An Overview: How much does it cost to launch an NFT project?

NFTs are one of the most trending topics in the whole world. With their market popularity increasing every day, more artists are considering creating NFTs. We have heard a lot about how much people have made through NFTs. But what about the cost of launching an NFT? How much can it cost to launch an NFT project? In this blog post, we will focus on; How much does it cost to launch an NFT project?

What is an NFT?

An NFT (non-fungible token) is a non-interchangeable unit of data stored on a blockchain that a person can sell and trade. The NFT data units can be associated with digital media such as pictures, videos, or audio. NFTs have been around for a lot of years but they caught major attention of the world in 2021. The NFT market elevated from $340 million in 2020 to $24.9 billion the past year. With NFTs making more and more headlines every single day, more celebrities and artists are trying to get involved in it. So let’s cover the practical side of NFT, explaining how much it costs to create an NFT project and how you can mint an NFT.

What is NFT minting?

If you want to create an NFT for the first time, you should get used to the process of minting. NFT minting is the process of creating your NFT and registering it on the blockchain. This process might seem complicated at first but let us tell you that it is not.

If you want to create unique NFTs of individual art pieces and collectibles, then you should mint them first. The art, or collectible, is encrypted using a unique code and stored on a blockchain, allowing for individual ownership.

On a smart contract blockchain, like Ethereum, Solana, or other NFT-compatible chains, each artwork or collectible becomes an NFT. This entails paying transaction fees with the native blockchain cryptocurrency wallet and the blockchain’s native currency. Every blockchain transaction necessitates the payment of a gas cost, which incentivizes the network to validate and add your transaction to the blockchain.

The NFT process is as same as uploading a profile picture on social media. However, it is a digital piece of art in this case.

What are the costs related to NFTs?

Choosing a different blockchain to mint the NFT can cause a huge cost difference. The three major costs that are associated with NFTs are:

Gas fee

All blockchain processes need at least one blockchain transaction, which costs gas fees.

Account fee

This will be determined by the NFT marketplace you select to sell your NFTs

Listing fee

Some platforms enable you to mint your NFT for free but charge a fee for selling it for sale.

All blockchains have a different fee. Even the same blockchain could have a different fee. Things like data quality, size, minting time, gas fee, and transaction speed can cause a change in the cost of the NFTs.

The network’s supply and demand determine the transaction fees on the blockchain. When the demands go up, so does the gas fee. The volatile price of cryptocurrencies also affects the NFT cost, so a creator must also consider this factor.

NFT prices are usually from $1 to $500 but sometimes the prices can rise even higher.

You can easily mint NFTs on NFT marketplaces like Rarible, Mintable, or OpenSea. There are a lot of marketplaces related to NFT but you should choose the one that suits you the best. Choose a marketplace that is appropriate for the digital work that you are trying to mint and sell as NFT.

Even the time of mining has an effect on the cost of an NFT. Sometimes, NFT minting can be expensive during the week due to more on-chain activity. With the right strategy, you can choose the right time for a cheap NFT.

How much can it cost to create an NFT?

How much can it cost to create an NFT

We have studied the factors that determine the NFT cost. Now, we will get the know the actual cost of creating an NFT on a marketplace. There are two key options that you can choose according to your requirements and strategies.

Creating an NFT is not a complicated job as you can easily set up accounts on all major platforms including OpenSea, Rarible, or Mintable.

When you are minting an NFT, all of these platforms offer at least two blockchains to choose from.

Does NFT minting depend on the chosen blockchain?

Yes, NFT minting depends upon the blockchain you choose. The most popular NFT blockchain is the Ethereum network. It was the first programmable blockchain that supports digital item registration. But today, there are more options to choose from.

People like to choose the Ethereum network as it is the first and most popular blockchain.

Ethereum, on the other hand, is now undergoing major changes that will shift the network’s consensus mechanism from Proof-of-Work (PoW) to Proof-of-Stake. Transaction costs will decrease and transaction speeds will increase as a result of this upgrade. The upgrade should be completed by the end of 2022, according to the developers. Until then, all Ethereum transactions must be meticulously planned. It’s always a good idea to keep an eye on the current ETH gas charge on a site like ETH Gas Station.

As you want to know about the cost of an NFT project, we will talk about three popular blockchains for minting NFTs.

1. Ethereum minting

As already discussed, Ethereum is the most popular blockchain for minting NFT. So, how much does it cost to create an NFT on Ethereum?

Experienced investors may recall instances when a single NFT minting costs more than $50–$100, depending on the time of day and the price of ETH. However, this is no longer true, and prominent NFT markets have discovered a means to avoid the costs. On the Ethereum blockchain, developers can now mint NFTs fully for free.

You may utilize any of the most popular markets, such as OpenSea, Rarible, or Mintable, to mint an NFT on Ethereum. You may produce a new NFT after connecting your wallet, and you can choose between normal and lazy minting during the process. When it comes to the cost of producing your NFT on Ethereum, this is the most important decision.

2. Regular minting

The cost of minting an NFT on the Ethereum blockchain varies depending on the time of day, day of the week, and current Ethereum price (ETH). When we tried to mint an NFT on the Ethereum blockchain using OpenSea, Rarible, and Mintable at the time of our testing, the gas charge ranged from 0.0468 to 0.0616 ETH ($59 to $123, putting the price of 1 ETH at $2,490), independent of the NFT’s listed price.

If you wish to list your NFT on Ethereum, there is another alternative that does not need developers to pay any upfront minting costs.

3. Lazy minting

NFT artists and makers may mint their NFTs without incurring any upfront expenditures thanks to lazy minting. When lazy minting is selected, the process of actually registering your NFT on the blockchain does not begin until after the NFT has been acquired.

The minting charge is covered by the selling price of the NFT in this example. The buyer, not the NFT inventor, is responsible for minting the tokens.

Minting occurs later with lazy minting, lowering the demand for computing resources because only sold NFTs are minting. All digital artists and NFT makers may benefit from the solution, which is available in the most major NFT markets. They may generate an NFT on the Ethereum network for free by using lazy minting.

4. Solana minting

Solana is the second most popular blockchain after Ethereum. But it is better in terms of cost-efficiency. It is an affordable alternative for minting NFTs.

It’s worth noting that minting NFTs on the Solana blockchain necessitates the use of a Solana-compatible wallet, such as Phantom. To mint your NFT, you can use one of Solana’s prominent NFT markets, such as SolSea, SolanaArt, or Magic Eden.

So, how much does creating an NFT on the Solana blockchain cost? You just have to pay the Solana transaction fees for each on-chain operation, so the expenses are modest.

It’s worth noting that minting an NFT on the Solana blockchain will result in three blockchain transactions: two approval transactions for the minting and one for fixing the price when the NFT is listed. Each transaction, however, costs roughly 0.00045 SOL, which was the charge when we tested the minting process on SolSea. A transaction charge of $0.04 for 1 SOL = $95. The overall cost of minting an NFT on the Solana blockchain is 0.00135 SOL, which includes three transaction fees on the network.

5. Polygon minting

Using the most popular NFT marketplace, OpenSea, digital artists may mint NFTs on the Polygon blockchain. If you don’t currently have an OpenSea account, follow these instructions to establish an NFT.

The good news is that if you pick the Polygon network for your NFT, you may mint and market it for free.

You won’t have to pay anything to start mining NFTs on Polygon. This is feasible because when you choose to mint an NFT on Polygon, the platform employs the sluggish minting option by default.

After the NFT is first sold, the platform charges a 2.5 percent service fee, which is taken from the selling price. Another thing to bear in mind is that, even though you’re utilizing the Polygon network, the selling price will be in ether (ETH).

Conclusion

In this blog post, we analyzed the cost of creating an NFT project on different blockchains. You can see that it does not cost that much to create an NFT. Choosing some popular platforms such as Rarible, Mintable, and lazy minting can help you create NFTs for free. If you want to create an NFT project, you should check your requirements, and cost, and choose the best possible blockchain.

Would you like to know more about “How to invest in web3 with safety” so consult from Frequenc

We also provide you the great services for:

NFT MARKETING AGENCY
DIGITAL MARKETING AGENCY
INFLUENCER MARKETING
NFT CONSULTING SERVICES

 

Leave a Reply