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Why most NFTs are ugly but keep rising in price? This article comes with 6 reasons for this and explains why such NFTs are expensive.
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If you are wondering why most NFTs are ugly, then you are in the right place. NFTs – or non-fungible tokens – became very popular in recent years with the expansion of blockchain networks such as Ethereum, Binance Smart Chain (BSC), or Solana.
Crypto projects have released different NFTs and collections that have attracted the attention of a large number of investors. But why are NFTs ugly? We have seen that, compared to other types of art, NFTs have something in common: they are usually ugly.
Despite that, we have seen many of them being sold for very high prices. So, why most NFTs are ugly? We have seen apes, frogs, and many other ‘ugly’ NFTs on the market. Few of them are actually linked to real-world art pieces or esthetically beautiful. But there are some reasons behind that.

Why Are most NFTs so Ugly?
We will touch on these topics and many other things in the next sections of this article.
#1 – Scarcity
Thanks to blockchain technology, users can now get access to different types of assets, from tokens to NFTs. That means that non-fungible tokens are released on different blockchain networks, which gives holders the possibility to possess digital art for the first time in history.
One of the main characteristics of NFTs is that they are scarce. Projects launch their own NFTs with a limited supply trying to make them as scarce as possible. This makes it possible for NFT holders to hold really scarce assets and be part of an “art” collection that is exclusive and to which few people get access.
As happens with traditional cryptocurrency tokens, scarcity drives price in many cases. It is not the same to create an NFT collection of 1 million pieces as focusing just on 1,000 NFTs. Those who hold one of the 1,000 NFTs feel that the NFT they hold is worth much more than those 1 million NFTs.
Scarcity is one of the reasons why NFTs are expensive
If scarcity plays a key role, why most NFTs are ugly? Artists could focus on creating smaller collections with a focus on quality rather than on quantity, but this is something that might take longer. Therefore, projects launch several NFTs to the market so they can sell them as soon as possible.
Nowadays, some artists and investors that appreciate art and technology could pay very large sums of money for smaller NFT collections. However, this might take longer for projects to be developed. Focusing on high-quality art could put them in a non-competitive situation in the market (where most collections have close to 10k NFTs).
Why you need to hire an artist for an NFT project
In addressing the question of why many NFTs are perceived to be of poor quality, attention must be paid to the importance of attracting qualified NFT artists. The experience of artists has a significant impact on the visual value of a collection of NFTs.
Engaging talented artists to work on the NFTs helps ensure the creation of visually appealing and high-quality artwork that will resonate with collectors and enthusiasts. Professional artists bring a unique outlook, creativity, and technical skill to the process, resulting in visually appealing NFTs. This is why it is important to hire nft artist team for your project.
Investing in skilled NFT artists also attracts a larger audience that values the artwork’s beauty. Remember, the more interesting your NFT work and brand are – the greater the chance that you can successfully sell it on marketplaces.
#2 – Brand New Technology
It is also clear that NFTs are a relatively new technology that is just starting to grow around the world. Every new technology, including cryptocurrency and blockchain, starts with hypes and bubbles.
Let’s not forget that when Bitcoin was getting closer to $20,000 in 2017, there were hundreds of Initial Coin Offerings (ICOs) being launched almost on a daily basis. These low-quality projects eventually ended up disappearing, but something similar could be happening to NFTs.
Why are popular NFTs so ugly?
Indeed, if you are asking “why are NFTs ugly?” then this might be related to the fact that we are seeing the expansion of a brand-new technology. In the future, and with the expansion of other NFT projects, we could see better-quality artwork being released on top of different blockchain networks.
The NFT space will also require more time to get more mature and see projects use and leverage the benefits offered by non-fungible tokens. There are also other things that should be taken into consideration, including funding, regulations, and the involvement of other companies that could change market trends.
Until now, we have seen simple and ugly art pieces being sold on different marketplaces. As companies start experimenting with this technology, we should expect higher-quality NFTs to be released to the market on a regular basis.
#3 – Supply and Demand
As in other industries, supply, and demand play a very important role in the NFT market. One of the reasons behind the craziness that we have seen in NFT prices is the fact that people buy the most popular NFTs expecting their value to rise over time.
This is similar to what happened during the ICO expansion in 2017 and early 2018. Investors were overpaying for different tokens waiting for their price to surge as it happened with Bitcoin, Ethereum, or other digital currencies. However, this did not happen and many investors ended up losing their funds.
In this case, investors do not ask “why most NFTs are ugly?.” They simply buy the NFTs that they consider could give them the best-selling opportunities in the future. Moreover, with small collections and a large demand for some of the most popular NFTs, the price of these art pieces becomes even higher.

In the past when trading cryptocurrency, we witnessed how people and investors FOMO buy these tokens. Additionally, this happens in the same way in the NFT market. Some investors believe that they won’t be able to buy NFTs of a certain collection for a cheaper price in the future. For this reason, they purchase these NFTs no matter the price expecting their value to continue moving higher.
As you can see, in these cases, the type of NFT is not important. Supply and demand play a key role in the NFT market.
#4 – NFTs are Minted in Collections
As we have discussed in this blog post, NFTs are minted in collections. These collections are different pieces of non-fungible tokens that follow a similar motive and layout. Some collections might have 10,000 NFTs while others could have 100,000. This is similar to the token supply of a cryptocurrency project, with the difference that we are talking about NFTs rather than crypto tokens.
But how are NFTs created? How are non-fungible art tokens minted? This is where things get much more interesting. Another reason why most NFTs are considered ugly can be related to the fact that NFTs are generated using simple visual layers. These visual layers play a very important role in the scarcity of a specific type of NFT.
Rarity and Traits
The rarity component of an NFT token that belongs to a specific art collection will be defined by traits. These traits make reference to different characteristics and features of each of the NFTs. Some of these traits include Head, Eyes, Mouth, Jewelry, Cloth, Background, and Skin. But there are many other things that could be included in the list.
These traits would help the NFT project mint different tokens. These NFTs will then become more valuable if they have rarer traits than others. Some specific types of traits might have a very small chance to be generated (below 10%). These scarce traits combined altogether could create a very valuable NFT token with a very high price.

This also explains why certain NFTs are expensive and others are cheap while being part of the same collection. In other words, some NFTs will be sold for higher prices even if they are part of the same collection simply because of the rare traits that they have. Remember, the rarer the traits, the more “valuable” the NFT. And as you see, investors don’t talk about how nice these NFTs are but they rather care about their scarcity and rarity.
#5 – The community behind NFTs
One of the most impressive things about NFTs is that they are not simple tokens that are purchased and sold in the market, but they are also a great way to attract a community. Indeed, some of the most popular NFT projects in the market like BAYC or CryptoPunks have attracted very large communities.
As we already know, large and engaged communities have a clear impact on the market, which is something that can affect NFT prices over time. Engaged communities buy new NFTs, promote different activities, and they also make it possible for NFT projects to reach a larger audience, which ends up pushing the price of NFT collections higher.
Hence, communities have a clear impact on the NFT market. The larger the community, the better for the NFT project. As we can see, NFTs do not expand in the market just because they are beautiful pieces of art. Instead, they are promoted by enthusiasts that like to be part of a community and engage in different initiatives related to the project behind a specific NFT collection.
#6 – Gamification
We have talked about NFTs used as art. They usually represent pictures, images, and artists’ creations. However, non-fungible tokens have many other use cases. In 2024, we witnessed the expansion of a new type of blockchain-based project called Play-to-Earn (P2E) games.
These P2E games have used and relied on NFTs in order to attract users and create in-game economies. One of the most interesting aspects of NFTs is that they are created on top of a blockchain network and will never be destroyed. Basically, you are the real owner of that specific NFT.
Therefore, crypto P2E games have created their own in-game NFTs that are linked to different items (swords, shields, potions, etc). Each of these items was created as an NFT that could be purchased and sold in different open markets.
Games are providing an alternative to crypto art for the NFT market to expand. In this case, the question “why are NFTs ugly?” might not apply. As some in-game items could be very valuable for users due to their usability inside the P2E game. In the future, we could see new use cases being given to NFTs rather than focusing on hyped (and sometimes ugly) art projects.
Final Words
All in all, the beauty of digital art collections and NFTs is all based upon personal opinions and feelings and therefore subjective. Even though, why are most highly expensive NFTs designed with low quality(for example crypto punks) or even considered ugly?
In this article, we have tried to explain the reasons why such NFTs are expensive. Additionally, by diving into the technology and uniqueness of this new trend in the cryptocurrency industry.
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