Non Fungible Token(s) are here to stay. At the moment the market may be in a bubble but that is only because this technology is scratching the surface of a global network of buyers and sellars. Although this sounds like a contradiction I believe that the market as it stands is going to fragment into many siloed exchanges, each with their own specialisms.
Currently NFTs are confined to digital art, audio, video or pictorial, in essence it is only a unit of data stored on a blockchain (ledger) which cannot be replicated. The artwork itself being digital can copied, and distributed anywhere but the NFT can only exist as a unique entity.
NFTs can revolutionize the way artists are rewarded for their work, this is especially true for pictorial artists who can reclaim the scarcity of their work. This in turn will increase the value of their work and create new revenue streams. NFTs cannot prevent plagiarism of a digitial artwork but it can prove provenance and ownership. The various NFT exchanges prove that the market for these collectables exists and that the potential has only just being recognised.
“Everydays – The First 5000 Days” by @beeple selling for $69 million at Christie’s momentarily catapulted NFT technology into the public consciousness only to be forgotten weeks later. This ’15 minutes of fame’ belies the fact that the NFT market is growing exponentially.
According to analysis by DappRadar the market(sales) for NFTs for the first half of 2021 was $2.5 billion compared with the same period last year of (only) $13.7 million. From millions to billions within a year.
All indicators point to a thriving NFT environment that will likely see the market to continue to expand at a rapid rate with innovative and idiosyncratic use cases to continue throughout 2021.
Useful NFT primers and explainers
Finally NFT exchanges reflect an infinite range of artistic expression from the mundane to the extraordinary.