- Digital artists are switching to Hic et Nunc marketplace to mint and sell their NFTs.
- The platform is based on Tezos and uses a more energy-efficient consensus.
- Digital artists like Joanie Lemercier and Memo Akten have left Ethereum in favor of Tezos.
It all started with Cryptokitties. In 2017, the Ethereum-based application that issued cartoon artwork of digital cats managed to choke the network as people rushed to grab their own unique feline cutie. Many predicted it would spark a craze for NFT-based assets.
It did, although the craze was a long time coming. Over recent months, the NFT trend has exploded into the mainstream. Despite having a wide variety of use cases, the main focus so far has been on NFTs as digital art. The most famous example by far is Beeple’s $69 million sale via Christie’s. However, Sotheby’s has also moved into the space, closing an auction of NFTs from digital artist Pak at $17 million. Phillips successfully shifted its first NFT from artist Mad Dog Jones for $4.1 million.
But the crazy sums of money changing hands may not last. By all accounts, NFT sales dropped off in April. Crypto exchange Kraken’s monthly Intelligence and Market Outlook report shows that volume in April was down by 80% compared to February.
Many are quick to point out that the bubble is bursting. However, that’s not necessarily the case. While the initial hype may be dying off, the Kraken report shows a good deal of confidence that “market participants are continuing to build and innovate within the world of NFTs.”
What does that mean for the NFT art markets, and where can we expect them to go next? Based on recent events and some expert insights, there are several directions.
A Market Dominated by Crypto Whales?
One clear trend has emerged from the recent high-profile NFT sales – the buyers tend not to be collectors of traditional art. One NYC art adviser recently told the New York Times, “Absolutely none of my clients are buying NFTs. I have people curious, but we are waiting to let the dust settle first.”
The NFT art phenomenon certainly appears to be led by wealthy individuals who aren’t your typical art collector – at least for the sales where buyers have made themselves known. For instance, the Beeple collection auctioned by Christie’s was scooped up by Vignesh Sundaresan, aka MetaKovan, a Singapore-based entrepreneur and investor.
According to an interview he gave to CNBC’s Squawk Box, he was willing to hand over $69 million due to his belief that the NFT is a “very significant piece of art history.”
He went on to state his belief that digital NFT-based art is only at the beginning of its journey: “Sometimes these things take some time for everyone to recognize and realize. I’m OK with that,” Sundaresan said. “I had the opportunity to be part of this very important shift in how art has been perceived for centuries.”
Justin Sun, founder of the TRON platform, is another wealthy crypto entrepreneur who’s embraced the NFT trend. Having missed out on the Beeple auction, Sun was quick to scoop up the Pak NFT auction led by Sotheby’s. He took to Twitter to announce that he had purchased a full set of NFTs for his firm’s JUST NFT fund.
(1/2) I’ve purchased 1686 units and collected a full set of Open Edition #NFTs by @muratpak at the @Sothebys X @niftygateway auction. This was the first official cooperation between the #JUST NFT fund and Sotheby’s. pic.twitter.com/t8oMNWIz7z— Justin Sun