Non-fungible tokens (NFT) swept the cryptocurrency industry in 2021.People’s growing interest in these digital collectibles led to a record high in August transaction volume and personal NFT sales. More than $1 million regular.
However, with so many NFTs currently on the market, it is difficult to determine which unique collectibles are worth the high price.It’s also important to point out that although NFT is Become mainstream, They are directly related to the cryptocurrency ecosystem and are therefore susceptible to market fluctuations.
Discover the value behind the popular NFT
Although the NFT transaction volume has Deflation continues this month, Highly sought after projects such as CryptoPunks and EtherRocks are still seeing high prices. Although these are the first works of art on the Ethereum blockchain, Andrew, the founding chief marketing officer of the stablecoin project Reserve.org, told Cointelegraph that he believes the value of EtherRocks will continue to rise, especially since only 100 projects have been created. fact. “Punk, rock, and kittens are all classic’arts’ of Ethereum encryption in 2017. However, there are thousands of kittens and punks here, but only 100 stones.”
Snowfro, the founder of NFT art platform Art Blocks, responded to Andrew telling Cointelegraph that, in general, CryptoPunks operates independently of the entire market. “They only had 10,000 cars, and in the end, it was obvious that more than 10,000 people wanted to own one, so people will likely have a strong interest in Punks,” they said.
EtherRock 73 purchased with Ξ790 Ether (US$2,607,584.60)
10 hours and 50 minutes ago (Sep-07-2021 08:03:49 PM +UTC)
-EtherRock price (@etherrockprice) September 8, 2021
Due to the limited number of CryptoPunks and EtherRocks on the market, owners of these NFTs may also hesitate to sell. According to Andrew, EtherRock owners will probably never sell just because they want to be part of the history of encryption: “One of the reasons Van Gogh’s works are so valued is because of their historical significance. The historical significance of EtherRock may also be the same. “In turn, Andrew explained that EtherRock NFT holders immediately became part of the exclusive club, which also triggered the skyrocketing price of EtherRocks: “For me, the final logic is that in the next 3 to 30 years, it will be created in 2017. Your NFT will be very precious. It’s almost like ancient art.”
Based on experience, Fungibles, CEO of Greenleaf Ventures, told Cointelegraph that he purchase After receiving personal information about the project from social media guru Gary Vaynerchuk, his EtherRock:
“At the time, there were only three stones left, each selling for 8.5 ETH. I felt good about this project because it was in 2017, when there were only 100 rocks. I pulled the trigger and sent a message about me Purchase a tweet worth $24,000 in rocks.”
In addition to the rarity and history behind the project, Fungibles also mentioned that EtherRocks is also a perfect meme: “If this project succeeds, it shows that something that looks so terrible has some beautiful things, and it may eventually return to zero. This is Perfect memes and collectibles.”
Fungibles also pointed out that some of the most popular NFTs today also provide access to owners. Specifically, he explained that owning EtherRock provides individuals with access to exclusive gatherings around the world, while also allowing the group to vote on specific things that help increase the value of EtherRocks: “The community is gathering around this token. Together, it means gaining access to certain things. For me, this is a long-term investment.”
Anthony Scaramucci, the founder of SkyBridge Capital and SALT, further told Cointelegraph that SkyBridge just Announce 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 wider market, where they can experience digital art and experiences in unique and exciting ways: “Flatter NFT owners will have access to a community that includes sharing Experience, events, early and exclusive access to what happened.”
Although the platform has just launched, Flatter may show traditional investors the different possibilities that NFT offers, especially when mature art collectors start to enter the NFT field.In the NFT panel presentation during the SkyBridge annual SALT conference, Christie’s digital art and online sales expert and head Noah Davis mentioned that many well-known art collectors have participated Christie’s Andy Warhol NFT Auction May this year. Davis pointed out that three-fifths of the collections went to blue-chip art buyers, and pointed out that the real world is undergoing a shift to NFT.
Too much supply, but not enough demand?
Although the highly sought after NFT may have certain characteristics, a large number of new NFTs flood the cryptocurrency market every day. However, even if these NFTs have rarity, unique features, and accessibility, the question of whether supply will exceed demand still exists. In addition, if this is the case, NFT will inevitably lose value over time.
Jason Lau, chief operating officer of the cryptocurrency exchange Okcoin, told Cointelegraph that NFTs could eventually be created by anyone with access to the Internet, but there are far fewer people interested in owning them:
“Ultimately, supply will exceed demand. This is very similar to any other creator-based economy. For NFT, we are still in the early stages, and both creators and owners are exploring a lot-it remains to be seen how we eventually reach balance. “
However, Snowfro has a different view on this matter. He pointed out that when you have hundreds of artists who want to show their work in an unprecedented way, “oversupply” is a counter-intuitive concept.
In terms of the value lost over time, Lau points out that there are many similarities between NFT and traditional art. Since supply may exceed demand, he believes that some NFTs will inevitably lose value, while others will increase in value as new creators and experiences become popular.
Decentralized financial investor Santiago Roel Santos (Santiago Roel Santos) further told Cointelegraph that although not all NFTs can hold their value, he does want to see the next Picasso stand out from this movement: “At this point , Every major artist, creator and studio is considering NFT and formulating strategies.” But even if it loses its value, Fungibles remains optimistic:
“There will be a bear market, some NFTs will be less than they are now, but this will also allow new buyers to enter and allow EtherRocks to change hands. I think there will always be a market regardless of the price.”