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Four-Layer Valuation Framework for Non-Fungible Tokens (NFTs): Asset, Market, Technology, and Ecosystem Perspectives

  • Seoul National University of Science and Technology (SNUST)

Research output: Contribution to journalArticlepeer-review

Abstract

In this study, we propose a structured valuation framework for non-fungible tokens (NFTs), a distinct class of digital assets whose pricing mechanisms remain insufficiently understood. Based on previous empirical studies and illustrative case analyses of three major NFT collections, we synthesize insights from non-cash-flow asset theory, market microstructure, and behavioral finance to construct a four-layer valuation framework consisting of the Asset, Market, Technology, and Ecosystem layers. We identify three NFT-specific mechanisms—verified digital scarcity, pseudonymous signaling, and on-chain herding—that modify or extend traditional valuation paradigms. Empirical evidence from the literature suggests that rarity-driven asset features and social-influence dynamics are dominant price determinants, while wash trading, fragmented liquidity, and platform incentive structures generate persistent distortions in price discovery. Case analyses of CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins demonstrate how differing risk exposures across the four layers translate into distinct valuation trajectories. With this framework, we obtain a basis for improved risk assessment, regulatory oversight, and business model design in NFT markets.

Original languageEnglish
Article number245
JournalJournal of Risk and Financial Management
Volume19
Issue number4
DOIs
StatePublished - Apr 2026

Keywords

  • NFT valuation
  • behavioral finance
  • blockchain technology
  • digital asset pricing
  • four-layer framework
  • market microstructure
  • non-fungible tokens

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