NFT is changing the collectibles market

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Throughout history, art has been the ultimate source of inspiration for many people. In the era of cryptocurrency and the digital world, trends are changing faster than ever. Over the years, many artists have tried to enter the fast-moving playground and grab a place, but now their time has truly arrived.

The NFT boom quickly took over the industry, turning digital artists and popular meme creators into wealthy celebrities. It is difficult to estimate when this euphoria will run out, but before the hype stops, we will definitely see more market records and exciting experiments in this area.

related: NFT trading card: a new way to own collectibles or asset bubbles?

From a few cents to a large sum of money

Market capitalization Irreplaceable tokensOr NFT, which shows a trend of rapid development, Grow From 2018 to 2020, this number has almost doubled tenfold. The development from niche forums to the oldest auction houses is very fast. Christie’s auction house has realized this trend in advance and successfully launched another NFT auction. Different artworks and collectibles have six-figure price tags and more.The latest breakthrough world record Resulted in the payment of more than $69 million JPEG file made by artist Mike Winkelmann (also known as Beeple). Could this be expected decades ago?

Globally recognized auction house owns plan The auction house exclaimed that it will auction 9 rare CryptoPunks NTF for the upcoming auction on May 11. “This will be the first time a revolutionary NFT item worth 5184 pixels will be auctioned at a traditional auction house.” The total sale price is estimated to be between $7 million and $9 million, but the result may be much higher because of one of these tokens already Sell The price in March was $7.5 million.

CryptoPunks is a typical example of the current booming NFT market. The project was initiated by Matt Hall and John Watkinson, the founders of New York software company Larva Labs, who created 10,000 images of people at 24×24 pixels. It is hard to believe that the founder of the project distributed these NFTs to members of the crypto community for free. Half a year later, the cost has soared to thousands of dollars, and today, these collectibles have been sold for millions of dollars. What causes people to buy unconventional pixel digital art at the price of a garage full of luxury cars? The hype is due to the rising role of cryptocurrencies worldwide and the fact that these limited editions still represent some of the first collectibles in the cryptocurrency market.

Art historian and art consultant Tatiana Stiskina explained the motivation:

“I decided to buy a CryptoPunk before Christie announced the sale on May 11. Therefore, my husband and I bought it on the day Christie announced the sale. CryptoPunks is not only a deeper symbol of cryptoart, but also a technology. The deeper symbols of the industry because they are generated using algorithms. It is these algorithms that are admired by people, and these algorithms give us everything related to high technology and DeFi.”

Reveal the story behind the popularity of NFT

What makes NFT items so popular and special? Blockchain is a groundbreaking technology, it can change almost everything it involves. Ownership records cannot be forged, and NFTs cannot be copied and pasted. With the support of distributed ledger technology, such tokens are not replicable and cannot be replaced, and there is only one owner at a time. Because NFTs have interchangeable functions and fungibility, although they are called “irreplaceable”, they are liquid and can be bought or sold on the Ethereum-based market.

related: Chicken or Egg: Why are NFTs interchangeable?

CryptoPunk is some of the NFTs that were first launched on the Ethereum blockchain in 2017. These tokens use the ERC-721 protocol standard, which means that they are unique and cannot be replaced by other tokens, so they have an irreplaceable nature.

Why are some tokens worth a few cents, while some tokens are worth tens of thousands of dollars, and some are worth several million dollars? The price is based on an analysis of the rarity of specific attributes respected by crypto art and the community. However, although CryptoPunks has been leading the field, there are other examples that can overshadow their success. Like every additional, very lucrative opportunity, this field has become overcrowded, and they hope to seize the opportunity by deceiving consumers and collectors.When you keep in mind the total value of NFT transactions Quadruple It reached 250 million US dollars last year, and this trend will not surprise anyone.

related: NFT and U.S. taxes: what you should know

Look to the future

There is no estimate for how long the anchor point of the NFT will continue to be attractive to wealthy investors. Some people believe that the bubble will burst faster than the initial hot money issuance ends. Right now, perhaps the combination of fresh looks and elegant taste can change and change everything. A new ship must arrive at the NFT’s blockchain port, which may make such a change.

Last week, the crypto community was crazy about a new NFT collectible project-The Bored Ape Yacht Club, a collection of 10,000 Bored Ape NFTs residing on the Ethereum blockchain-unique digital collectibles that sold out in major markets Up. This is an exciting project that tries to include gamification and community elements, and it will be interesting to see the next step.

Ksoids project debuts on April 22 As an NFT project-a few days later, it soared to the top of the rankings on OpenSea. Out of all 1,000 sold-out items, more than 900 are sold out, so some can still be purchased at auction. Ksoids is an algorithmically unique creature. Its fresh air and best creativity have not been ignored by digital art lovers, collectors, fans and investors. They claim that it is a truly independent project. Ksoids is the first generation of generative art of 3D characters, which not only creates its own world, but also helps protect our world. 20% of each sale will be donated to Orangutan Outreach, a non-profit organization dedicated to protecting orangutans in their native habitat.

The latest NFT collection from Larva Labs is a topic in the crypto community in recent days-the public sale ended in a few hours. Meebits are 20,000 unique 3D voxel characters created by a custom generation algorithm registered on the Ethereum blockchain.According to data from Dune Analytics, Larva Lab production The public sale price is as high as $72,976,613.

related: Things to know before buying or selling NFT in the U.S.

Behind the digital collectible boom

In a highly speculative market, every new record is not as impressive as the previous record. There will always be people who are willing to pay amazing amounts of money for experimental ideas for curiosity or to stand out from the crowd.

Some high-profile investors see NFTs as a way to diversify their cryptocurrency investment portfolios and create new elite clubs. Most new market participants hope that digital art will pay a huge fortune at some point in the future. The only obvious thing is that the market has further matured and progressed, and professionals have stepped in and set a benchmark quality example.

The views, thoughts and opinions expressed in this article are only the personal views of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Alexandra Luzan He is a PhD student at the University of Ca’Foscari in Venice, studying the connection between new technology and art. For about ten years, Alexandra has been organizing technical conferences and other events dedicated to blockchain technology and artificial intelligence in Europe. She is also interested in the relationship between blockchain technology and art.