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Here’s Why NFTs are on The Rise

Non-fungible tokens (NFT) are hardly news in the crypto industry, beginning perhaps with Crypto Kitties, the Ethereum-based platform which introduced the community to unique tokens representing digital objects, or digital forms of a real product. Growth in the NFT market has remained largely subtle in the past few years, but in 2020, we see NFTs making a comeback, along with the boom of decentralized finance (DeFi).

From virtual pets, trading cards, game player characters to digital artwork and more, prices on NFT marketplaces have seen new highs in price points, as buyers pay what they want, to obtain the covetable and exclusive digital products they are eyeing. There are also multiple platforms to purchase these crypto collectibles, such as OpenSea or Nifty Gateway, which is owned by the famed Winklevoss twins. Earlier this year, when COVID-19 was running rampant across the world in its initial stages, COVID-19 digital bat art NFTs were sold on OpenSea.

On Nifty Gateway, a digital artist called Beeple sold more than a million USD for his art pieces over last weekend, recording $582,000 in sales in just the first five minutes. The artist is in the midst of selling a second collection this weekend, and according to Nifty Gateway’s team, Beeple has already sold close to a million USD worth of NFTs on the marketplace.

Some of his art is crypto-inspired, such as ‘Bull Run’ and ‘Into the Ether’ which sold for $969 each.

Other works such as ‘Picasso’s Bull’, designed by NFT artist Trevor Jones, sold for $19,500 recently. What is noteworthy about this sale is that this is 26 times more than the original asking price, set by initial buyer Micah Johnson after putting the work up for sale.

The digital art marketplace in particular has seen a boost in recent months, as artists take to these platforms to offload their works. Some of these are inspired also by real-life events, such as the global pandemic, and often fetch high prices at biddings on these platforms. 

Prices on NFT marketplaces are not simply bound by the mechanics of supply and demand, and auction biddings allow for substantial markups of a product’s final purchasing price point, allowing sellers to earn multiple times the original asking price. There is something to be said about owning something absolutely unique and exclusive that cannot be replicated, and it is no wonder that individuals are flocking to NFT markets.

You may also want to read: Why Will Non-Fungible Tokens Sustain The Next DeFi Revolution?

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