No - it's worth that much because of who painted it. There are shitty drafts of Guernica that Picasso did that sell for hundreds of thousands. There are infinitely better drawings that one could not sell for a single penny. The artist is what gives it value. It's truly scarce because only so much work came from that artist - who people are obsessed with.

I will 100% grant that it's mostly about signaling and bragging rights. But NFTs are artificially scarce. Original work from Picasso is truly scarce.