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From Pixels to Millions: The NFT Craze Explained, Market Dynamics Dissected

Dive into the fascinating world of Non-Fungible Tokens (NFTs) with From Pixels to Millions: The NFT Craze Explained, Market Dynamics Dissected.

The market craze is kind of an NFT thing, and it is now defying all reasons. One special thing to mention is how JPGs continue to sell for millions of dollars, raising questions about whether JPGs matter this much.

Fluctuations in prices also happen. 2021 saw huge fluctuations probably due to COVID-19 pandemic. Yet investors continue to spend billions upon billions on NFTs. For instance, as of October 16, 2021, OpenSea had a transactional volume of more than $3 billion in just 30 days. This number is also a way down from August. More stats in the further NFT worldwide highlights will blow your mind and make you think again about why you should start investing in NFTs.

In this article, we will look into NFTs from different angles. Let's explore the world of NFTs.

What is a non-fungible token (NFT)?

Non-fungible NFT

A non-fungible token (NFT) is a unique representation of the market value domain of real-world or digital assets like collectibles, in-game items, real estate, music, and art. They are in token form that is secured on a blockchain of Avalanche, Ethereum, and Solana. This cryptocurrency is used for NFT transactions.

NFT marketplaces are only available digitally; do they also seek digital onboarding of clients? There are no physical branches to provide consultations and services. However, their clients don't necessarily need to have a smartphone to open an account. You can access these cryptocurrency platforms via desktop websites that usually charge a fee for their services.

Within the market scope, NFT transactions happen in the NFT marketplaces. Some of the key players in NFTs include Opensea, Rarible, Axie Marketplace, and Foundation.

Highlights of NFT in the Eastern European region and other parts of the world

The NFT value is increasingly jumping high, setting precedence to reach new levels in 2024. NFT worldwide highlights are:

NFT projected revenue is US$2,378.0 million in 2024. Tally it with global art share of physical art for a better idea of how NFTs are valuable.

The revenue graph is likely to show an annual growth rate (CAGR 2024–2028) of 9.10%, and this will take NFT market revenue to US$3,369.0 million by 2028.

The average revenue per user is estimated to be US$162.1 in 2024.

The NFT market is likely to amass 16.35 million users by 2028.

User penetration is likely to be 0.19% in 2024. It is expected to reach 0.20% by 2028.

Types of NFT marketplaces

NFT markets

NFT marketplace platforms have very general and specialized marketplaces, like gaming. Your NFT interests will be influenced by the marketplace that meets your needs, whether you are buying or selling.

NFT have advantage of Blockchain technology, and marketplaces are:

Curated NFT marketplaces: Curated marketplaces are popular for their approach to first vetting and approving artists before they can sell their NFTs there, ensuring products of great quality. These are the potential places where you will see celebrity art and creations.   Non-curated NFT marketplaces: Self-service or non-curated NFT marketplaces are open for any user to buy and sell NFTs. Several mass NFT marketplaces fall under this category.

Mass NFT marketplaces: Mass marketplaces for NFTs have similar styles, like you often see on eBay. Most auctions follow fixed-priced options. They cater widely to NFTs because they have a wide variety of users. Crypto and credit card payments are acceptable on most marketplaces.

Niche NFT marketplaces: These marketplaces particularly focus on a specific theme or asset like music, art, gaming, or real estate. These marketplaces often have specialist services like recommendations.

NFTs are a game changer for artists, galleries, and art collectors.

NFT galeries

Traditional digital art remains readily replicable, while NFTs have the advantage of blockchain technology to establish verifiable ownership. This innovation shows shifts in paradigms that impact artists, galleries, and collectibles in a positive way.

For Artists

NFT art marketplaces assist artists to showcase their talents and sell their work directly to collectors. This emerges as a more diverse and vibrant art scene, empowering new voices to emerge and flourish.

NFTs have built-in royalty percentages that help artists earn not just for their own sake but rather for subsequent sales too. This becomes a continuous revenue stream, providing financial services for stability and incentives. Artists can also meet investors directly, which further fosters a deeper relationship.

For Galleries

Galleries can leverage NFT art marketplaces and reach pools of customers offering their work beyond physical artworks. This is highly beneficial for galleries, and they can mitigate risks with exciting revenue streams. They can establish themselves as trusted tastemakers in the digital realm with exceptional NFT art collections.

The NFT landscape is an opening to new digital stuff that can reinforce their reputation and attract collectors seeking quality and authenticity. Galleries can reach a wider audience by organizing virtual exhibitions and interactive events involving NFT art.

For art collectors

NFTs provide verifiable ownership of digital art that eliminates any concerns associated with digital copies and reproductions. This makes NFTs unique and builds strong interest in investors. If the value is high, fractional NFTs allow multiple collectors to share ownership. NFT art creates new engagement pathways that benefit collectibles, like access to artist communities and special events.

Where to Sell NFT Art?

NFT sell

Where to set up shop in the burgeoning digital art world? This is a thrilling and sometimes bewildering question for aspiring NFT artists. Several platforms vie for attention with unique features and cater to specific niches. The main options available on the market include:

Public Marketplaces

OpenSea: OpenSea boasts a huge user base with virtual assets for its huge variety of art collections and established infrastructure. Artists can easily mint, list, and sell with its user-friendly interface. However, as the volume of NFTs is too high, users may have to experience discoverability challenges. Competition is also fierce for emerging artists.

Blur: Case studies show Blur is a fierce competitor with a different approach that has already amassed over $1 billion in monthly trading volume. Efficiency and speed are top priorities of the platform that gives it an edge in the fast-paced NFT market.

Specialized Marketplaces

Digital Basel: These platforms prioritize curated experiences to cater to high-end NFT art. Their registration process is rigorous that starts with applications. Their rigorous approach ensures exposure to a targeted audience of discerning collectors. This makes entry difficult as well as competition is too high.

Niche Marketplaces: These are single theme or art specific marketplaces. With specific niche, reach is extremely hard. This further makes success less certain.

When you are choosing a digital economy of NFT marketplace, consider these certain factors:

  • Community and curation
  • Fees and royalties
  • Technical ease

As the NFT marketplace is hard to succeed, if you want to, better to follow a multifaceted approach.

Most Expensive NFTs Sold

When you will read top most expensive NFTs sold, you'll get proper idea how these digital crafts are as valuable as physical ones are:

The Merge ($91.8 million): The Merge is developed by an unidentified and popular digital artist Pak.

NFT 5000 days

The First 5000 Days ($69 million): The auction house Christie's sold collected a whopping 69 million for a massive compilation of artworks. Art pieces are of different styles, medium, and content and are dubbed "Everydays." Christie's art collection is among the top five most expensive NFTs sold.

Clock (52.74 million): Pak and Julian Assange collaborated to develop this rare art piece. This is a simple counter with a display of the number of days Assange has spent imprisoned. With the sale price of nearly fifty million dollars, it made waves among earnest supporters of the polemical figure.

Human One ($28.9 million): This art piece was developed by Beeple and may just be their most unique one. Human One is unlike exclusive digital artworks but rather a hybrid design that also combines physical elements. Human One was sold at a $28.9 million price.

CryptoPunk #7523 ($11.7 million): CryptoPunk #7523 was purchased by DraftKings' shareholder Shalom Meckenzie at a whopping $11.7 million price. CryptoPunk #7523 is also part of the Alien series and is a little bit different from the 7804 and #3100 siblings. CryptoPunk #7523 is among the most iconic and expensive art pieces out there.

How to Buy NFT Assets?

There are some specific steps to take once you have made up your mind to buy NFT assets. You may want to start with a cryptocurrencies wallet. Once you have a wallet, you're ready to buy NFT. Next, transfer the key to successful NFTs into your crypto wallet.

The buying process includes:

You'll have to examine the market to choose from various exclusive items.  Once you have made your selection, the next step is to agree to purchase at the seller’s asking price. Each seller mainly has a list price, auction end time, and digital currency type. The seller can accept your price before the auction closes or wait until it closes. As the auction closes, your bid will be accepted automatically. Now you are the exclusive owner.

The Craze of the NFT Artwork Art Market

2024 shows future of digital art is going to skyrocket. As stats shared above, NFT's projected revenue is US$2,378 million in 2024. This shows it didn't take long for NFT to shift from a niche pursuit to a global obsession.

This trend shows NFTs are as appreciated as physical art. Tens of millions of dollars in sales further cement the value  of NFTs.

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