The digital art and NFT market will surpass 40

The digital art and NFT market will surpass $ 40 billion in 2021

Few people heard of non-fungible tokens (NFT) early last year, and they have only been of interest to a small number of crypto enthusiasts. However, by the end of the year, the digital art and collectibles market had reached nearly $ 41 billion, making it almost as valuable as the global art market.

Image source: Financial Times

Image source: The Financial Times

Since March 2021, when artist Beeple’s digital collage was auctioned at Christie’s for a staggering $ 69.3 million, community interest in digital art has risen sharply with NFT tokens creating and attempting to create their own digital art to implement. Around the same time, numbered collections of digital art appeared on the market, also authenticated with NFT tokens.

“The core value is still exclusivity.”– said Mason Nystrom, an analyst at Messari, a cryptographic data company. He also noted that some exclusive digital items highlight their owner’s club status as well as open access to opportunities not available to others.

According to the analysis group Chainalysis, which researches the cryptocurrency market, the volume of the NFT market was 40.9 billion US dollars as of December 15, 2021, compared to UBS and Art Basel who estimated the world art market at 50.1 billion US dollars in the end -Dollars Chainalysis analysts found that the popularity of NFT has drawn large numbers of retail investors from around the world to the cryptocurrency market.

Collectable Pixel CryptoPunk Badge at the Bus Stop / Source: Dia Dipasupil / Getty

Collectible CryptoPunk Pixel NFT Badge at bus stop / Source: Dia Dipasupil / Getty Images

Small transactions less than $ 10,000 make up more than 75% of the total number of transactions performed in this segment. Like the cryptocurrency market, the NFT market is also dominated by several major players. Between the end of February and November 2021, around 360,000 digital art owners held a total of around 2.7 million NFT tokens. At the same time, 9% or 34,400 digital wallets hold up to 80% of the total volume of the global NFT market.

It is also pointed out that unregulated space is susceptible to fraud, fraud and market manipulation, especially since the true identity of buyers and sellers is often unknown. Even so, enthusiasts are confident that NFTs will drive the evolution of e-commerce in the metaverse, bringing new opportunities and services to users over time.


About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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