Non-fungible tokens, or NFTs, took the cryptocurrency industry by storm in 2021. Growing interest in these digital collectibles led to record transaction volumes during August, with sales individual NFTs consistently exceeding over $ 1 million. .
Still, with so many NFTs currently on the market, it can be difficult to determine which unique collectibles are worth the high prices. It is also important to point out that although NFTs are becoming more widespread, they are directly linked to the cryptocurrency ecosystem and, therefore, are subject to market volatility.
For example, data shows that the total volume of NFT traded in major markets declined in early September, around the same time Bitcoin (BTC) fell below the $ 43,000 mark.
Discover the value of highly sought after NFTs
Although the volume of NFT transactions continued to deflate this month, highly sought-after projects such as CryptoPunks and EtherRocks are still seeing high-priced sales. While these were two of the first works of art to appear on the Ethereum blockchain, Andrew, founding marketing director of the stablecoin Reserve.org project, told TBEN that he believes EtherRocks, in particular, will continue. to gain in value due to the fact that only 100 were created. “Punks, rocks, and kittens are all classic Ethereum crypto ‘arts’ of 2017. However, there are thousands of kittens and punks and only 100 boulders. “
Echoing Andrew, Snowfro, founder of the NFT Art Blocks art platform, told TBEN that in general, CryptoPunks operate independently of the overall market. “There are only 10,000, and in the end, it’s clear that over 10,000 people want to own one, so there will likely always be a strong interest in the Punks,” they said.
EtherRock 73 purchased for 790 Ether ($ 2,607,584.60)
10 hours 50 minutes ago (07 Sep-2021 20:03:49 + UTC)
– EtherRock Prize (@etherrockprice) September 8, 2021
Due to the limited amount of CryptoPunks and EtherRocks on the market, owners of these NFTs may also be more hesitant to sell. According to Andrew, the owners of EtherRock will probably never sell just because they want to be a part of crypto history: “One of the reasons Van Gogh’s coins are so beloved is their historical significance. Perhaps the same could be said of the historical significance of an EtherRock. In turn, Andrew explained that EtherRock NFT owners instantly become part of an exclusive club, which also triggers astronomical prices for EtherRocks: “The ultimate logic for me is that in the next three to 30 years, the NFTs created in 2017 will be extremely valuable. Almost like ancient art.
Speaking from experience, Fungibles, CEO of Greenleaf Ventures, told TBEN that he purchased his EtherRock after receiving a personal message from social media guru Gary Vaynerchuk about the project:
“At the time, there were only three rocks left to sell for 8.5 ETH each. I had a good feeling about the project because it was from 2017, and there were only 100 rocks ever created. I pulled the trigger, then sent a tweet explaining why I bought a stone for $ 24,000.
In addition to the rarity and the story behind the project, Fungibles mentioned that the EtherRocks also make the perfect meme: “If this project takes off, it shows there’s something beautiful about something so horrible. which could possibly go to zero. This makes them the perfect meme and a collector’s item.
Fungibles also pointed out that some of today’s most sought-after NFTs also offer homeowner access. Specifically, he explained that owning an EtherRock allows individuals to access exclusive gatherings around the world while still allowing that group to vote on specific things that can help increase the value of EtherRocks over time: “Communities come together around this token, which means having access to certain things. For me it is a long term investment.
Anthony Scaramucci, founder of SkyBridge Capital and SALT, further told TBEN that SkyBridge just announced the launch of Flatter, an NFT platform that combines exclusive experiences with sought-after collectibles. According to Scaramucci, Flatter aims to expose traditional collectors to a larger market where they can discover digital art and experiences in a unique and exciting way: “Flatter NFT owners will have access to a community that includes shared experiences. , events, early and exclusive access. to events.
Although the platform has only just launched, Flatter could potentially showcase the various possibilities that NFTs have for traditional investors, especially as established art collectors begin to enter the NFT business. Speaking on the NFT panel at SkyBridge’s annual SALT conference, Noah Davis, specialist and head of digital art and online sales at Christie’s, mentioned that many established art collectors participated in the sale. at Christie’s Andy Warhol NFT auction in May of this year. Davis noted that three of these five collectibles have gone to blue chip art buyers, noting that there is a shift towards NFTs happening in the real world.
Too much supply, but not enough demand?
While highly sought after NFTs may have certain characteristics, an influx of new NFTs continues to flood the cryptocurrency market daily. But even though these NFTs boast of their rarity, unique characteristics and affordability, the question of whether oversupply will outstrip demand remains. Moreover, if this is the case, NFTs are doomed to lose value over time.
Jason Lau, COO of the cryptocurrency exchange Okcoin, told TBEN that NFTs can ultimately be created by anyone with access to the internet, but a much smaller population is interested in owning them. :
“Eventually, supply will exceed demand. It looks a lot like any other creator-based economy. For NFTs, we’re still at an early stage, and a lot of research is being done by both creators and owners – it remains to be seen how we will ultimately achieve balance. “
Snowfro takes a different take on the matter, however, noting that “too much to offer” is a counterintuitive concept when you have hundreds of artists who wish to present their work in a way that never existed. previously.
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In terms of the value lost over time, Lau pointed out that there are many parallels between NFT and traditional art. Due to the potentially greater supply than demand, he believes some NFTs will inevitably lose value, while others will increase in value as new creators and experiences gain popularity.
Santiago Roel Santos, a decentralized financial investor, further told TBEN that while not all NFTs retain their value, he expects to see the next Picasso emerge from this movement: “At this point all the great artists , creators and studios think about NFT and have a strategy. But even if value is lost, Fongibles remains optimistic:
“There will be a bear market and some NFTs will be lower than they are today, but it will also allow new buyers to enter and EtherRocks to change hands. I think there will always be a market regardless of the price.