Hedonic and Utilitarian Valuation Determinants of NFT Collections in the Post-Bubble Market

Since their inception in 2017, non-fungible tokens (NFTs) have evolved into a distinct digital asset class characterized by cryptographically verifiable ownership and multifaceted valuation logics. Prior scholars have established a robust foundation for understanding NFT valuation by identifying key hedonic and utilitarian drivers within NFT collections. However, a research gap remains regarding the joint impact of these determinants across a broader cross-collection scope within the post-2021 crypto bubble landscape.

This study’s objective was to statistically examine how measurable hedonic and utilitarian traits influence collection-level NFT valuation after the 2021 hype market, and which determinant exerts the highest positive impact on valuation. To investigate this relationship, a multivariate cross-sectional quantitative causal-comparative analysis was conducted. Using a log-linear hedonic regression, eight measurable traits were examined in relation to the floor price of 46 collectible (PFP) NFT collections selected from OpenSea.

It was found that not all traits positively influence NFT valuation as previously assumed. Additionally, it was concluded that the hedonic trait of ‘External Validation’ exerts the highest positive impact on valuation and is the most statistically significant, indicating that in the post-bubble market, credibility and third-party assurance (through brand partnerships and celebrity endorsements) appeal to cautious NFT investors. These results elucidate the shifting pricing dynamics within the NFT market ecosystem, and provide a strategic framework for creators, brands, investors, and regulators to strengthen current valuation frameworks.