How is an NFT price set?

The price of an NFT is mostly decided by two important things:

1. Demand: How much do people really want that particular NFT? Just like when a popular band is playing, and everyone wants a ticket to the concert, the more people who want an NFT, the higher its price might go.

2. Supply: This is how many of the same NFT are available. If there's only one NFT of a super cool digital art piece, it could be really valuable because it's so rare. But if there are many similar NFTs, the price might be lower because they're easier to get.

Imagine you have a rare trading card that's from a limited edition set. If lots of people are trying to get that card, the price might go up because it's hard to find. But if there are lots of the same card around, the price might stay lower.

So, it's a bit like a mix of how much people want the NFT and how rare or unique it is. Just like how concert tickets can be expensive if the show is in high demand, and they can be cheaper if there are plenty to go around.