Regardless if you are an NFT collector or NFT creator, you need to be well aware of what makes a piece of minted NFT art both collectible and valuable.
This article should get you up to speed so that you will hopefully have a clearer understanding of what makes the NFT market click!
The Buzz
It was a labor of love that paid off for Mike Winkelmann in the brave new world of NFTs.
Winkelmann, an artist who goes by the name “Beeple,” spent 5,000 days since 2007 working on his piece “Everyday’s — The First 5000 Days” before it was sold for $69.3 million in March 2021.
Even more shocking — it was an NFT, or a non-fungible token, a unique digital asset. It is the highest amount paid for such a form of art.
It’s a record that indeed will be surpassed soon as NFTs become more and more popular within the digital art collecting world.
Welcome to the cool, crazy, unique, and fun 21st-century world of NFT art. But what exactly is making NFT art so collectible and valuable? Let’s take a look.
1. Major Artists are Getting on Board
NFTs first came into the marketplace in about 2014, but they’ve gone more mainstream since then as awareness grew and more blockchains — the networks that house NFTs — came into the market.
Now well-known artists are banking on the new platform and collectors are taking notice.
English artist Damien Hirst, generally regarded as the United Kingdom’s richest living artist, has created “The Currency,” a project of 10,000 NFTS that are the digital equivalent of his physical prints. Since the NFTs cost $2,000 each, “The Currency” is a 20 million project.
Pop art favorite Philip Colbert has created a digital city, “Lobsteropolis” on a blockchain-hosted digital world. Singer/artist Grimes has also contributed to NFTs with unique visual and audio art. Her digital artworks sold for $6 million.
2. It’s History
Collectors pay massive amounts to own the “first” of something or a historical artifact, like the first photograph taken or the gun that killed Billy the Kid.
That concept translates to valuable NFTs. In March 2021, Twitter co-founder Jack Dorsey’s first-ever tweet — five words: “just setting up my twttr” — sold as an NFT for $2.9 million.
Toronto artist Krista Kim recently sold her “Mars House,” called the world’s first digital home, for $500,000. And yes, it’s a mansion on the planet Mars.
3. It Taps Into Already-Hot Markets
Sports collectibles — anything from signed football helmets to trading cards and uniforms — have been one of the most lucrative markets for decades.
They’re making a splash in NFT form, too. In July 2021, boxer Tyson Fury sold an illustration of himself with two championship belts for almost $1 million.
A LeBron James slam dunk NFT? It sold for $200,000. An NFT of footballer Cristiano Ronaldo? It went for $300,000.
4. Pop Culture Figures Are Getting Involved
Celebrities have a built-in fanbase that will typically buy anything and everything related to the famous person they idolize. Influencer culture is now also strong on NFT blockchains.
Paris Hilton (yes, that Paris Hilton) has created a series of crypto art — pets named after types of NFT currency — and the entire collection was sold for over $1 million.
Rapper Snoop Dogg’s first NT collection, a mix of art and music, was released in March 2021, and one of the pieces sold for over $100,000.
Even celebrities selling NFTs of other celebrities can make bank. Actress Lindsay Lohan sold an NFT of now-disbanded electronic group Daft Punk for $15,000.
And speaking of music, musicians are cashing in on album NFTs and even selling concert tickets with extra bonuses in NFT format. This little post explains how musicians are making big money in this digital world.
5. NFTs Make Digital Art Unique
Digital art is not at all new — it has been available and sold for years at usually low prices since it was so widely available. But with the advent of NFTs, digital art is now not only one-of-a-kind but certified as so.
That means even lesser-known digital artists, who previously sold digital art (or gave it away) have been making thousands of dollars on art that previously has little or no value, including digital mainstays like memes and GIFs.
In fact, memes are now playing a massive part in the NFT game. This article shows how to collect NFT memes in 6 steps.
Whereas memes were previously shared by millions, now they have the potential to be owned and licensed by one. And there’s extreme value in owning something that’s one-of-a-kind.
6. They Can Be Used In Different and Wide-Ranging Ways
Yes, NFTs are officially one-of-a-kind works, but part of their value is that they can be used in many lucrative ways.
Companies can create NFTs that soar in value because they can be integrated into different business applications and can be traded on other markets (creators of NFTs can even receive royalties every time their NFT works are sold on another market).
That potential adds a whole new revenue stream for businesses and invents all new business models.
So an NFT’s future value is heavily considered in its current value. Someone can buy an NFT game and then sell tickets for the NFT game. Businesses can also offer benefits to those who hold an NFT created by that business.
7. The Cool Factor
NFTs are rising in value in part just because they are NFTs. They’re new, strange, inventive, and represent a new vision of technology with endless potential.
For lack of a better word, NFTs are, well, cool. “Forever Rose,” which sold for $1 million on Valentine’s Day, is a digital photograph by crypto art pioneer Kevin Abosch.
CryptoPunks, 10,000 character collectibles, were the first NFTS sold on the blockchain Ethereum.
Over the past year, NFTs have offered games set in virtual worlds with fantasy creatures. The Weeknd has sold previously unreleased music as NFTs. An NFT illustration by “Rick and Morty” co-creator Justin Roiland sold for over $1 million.
For collectors looking for the best, most enviable new thing — and bragging rights of ownership — NFTs are a must-have. But first, you need a crypto wallet, assuming you don’t have one, and here is a great place to start:
Now what?
As you can see, cryptocurrency and NFTs are not going anywhere. If you are a digital artist or content creator, it may be an excellent decision to get involved.
If you are a collector of art, sports memorabilia and enjoy memes, you might have no other option than to get involved. Here are five other reasons to consider buying NFTs.
That being said, I would advise getting acclimated to the cryptocurrency world, look for a good crypto wallet and investigate the multiple platforms where you can purchase an array of NFT collectibles. Here are a few starter articles:
- NFT Crypto Art Collector Starter Guide | Why It’s So Easy
- How Much Does it Cost to Mint an NFT?
- Is NFT Art Protected by Copyright Law? (How To Get Sued)
It’s a fun, fun world, and this is just the start. Plus the future looks real bright after reading this article: 10 Reasons Why NFTs Will Change the World. To the moon.