Non-fungible token (NFT) artwork has been getting a lot of attention lately, and in December 2020, over $8.9 million worth of NFT-based artwork was sold.
This is according to nonfugible.com, a website that tracks NFT market history. The figure represents a massive month-over-month increase from the previous $2.6 million in total sales.
The sales increase coincided with notable price rises in both bitcoin and ether, a possible catalyst that may have caused the boom.
There were almost 70,000 NFT art pieces sold in the last month alone. The average price equated to $128.81, over four times the total average price in the history of NFTs, which currently sits under $30 each.
There was also increased adoption in Ethereum-based tokens and platforms, such as Decentralized Finance (DeFi). NFTs have largely taken a back seat to DeFi in the blockchain space.
These tokens represent a unique asset that cannot be freely interchanged and can represent various items like real estate, stocks, gaming items, digital collectibles, or artwork.
Mainstream Artists Getting Involved
Non-fungible art pieces are gaining traction, with many mainstream artists releasing renditions of their work as NFTs. One particular artist, Beeple, a graphic visual artist, sometimes creates bizarre landscapes that include Pikachu, Buzz Lightyear, or Kim Jung Un.
Beeple recently auctioned off his 2020 collection that contained a 1/1 digital copy of every graphic piece he made. He creates a new graphic every day. This unique collection sold for almost $800,000, a new record.
The fact that mainstream artists are getting involved in the space and that sales volume is taking off is a strong indicator of where the market is headed, especially if the bitcoin and ether prices continue to rise.
What Are NFTs?
Non-fungible tokens allow for different possibilities to standard cryptocurrencies. With crypto like Bitcoin, 1 BTC can be freely interchanged with any other 1 BTC, and the value would remain the same.
For an NFT, such as a numbered art unit, a 1/1 art piece cannot be exchanged for the same piece because no other one exists.
This framework can be applied to various items and asset classes. In real estate, for example, NFT tokens could represent a portion of an apartment. And in gaming, the token could represent a rare in-game weapon.