The investment of NFTs, or non-fungible tokens, has gained popularity among investors in recent years. Although there are many potential applications for NFTs, art investing has shown to be a successful early adopter.
In the past, only the extremely well-off could afford to invest in works of art, but now, thanks to NFTs, anyone may participate in the art investing. However, there are a few things you need know before diving in, such as what the state of the art is in NFT.
Investing in NFT art
Non-fungible tokens (NFTs) are like digital certificates in the sense that they prove ownership of an item. Nearly all NFTs use the Ethereum (CRYPTO:ETH) blockchain. Other blockchains, such as the Solana (CRYPTO:SOL) network, are also making strides in the NFT sector. For our purposes, the NFT “certificate” assures ownership of a work of digital art regardless of the blockchain it was constructed on.
What is NFT art?
Art based on NFT can take many forms. It could be a photograph, a digitally-created painting (using a computer screen and software in place of canvas and paint), a video, a musical composition, a written work, or even a video game. Any art that could be construed as digital art, including tangible works that have been digitalized, can be considered an NFT.
How does NFT art work?
It is possible for anyone to take a work of art, transform it into a new form of token (NFT), and then list it for sale on any of the many NFT marketplaces. You can use these same marketplaces to purchase an NFT to ensure your ownership of digital art if you want to be a collector, have exclusive usage rights, or collect royalties from the use of digital art by others online.
As with traditional art collecting and investing, NFT art has thus far been a very speculative game. One’s own perception of the work’s worth, as well as a number of intangible aspects, are key components in establishing its worth.
Value is determined by a number of factors, including as the popularity of the artist, the demand for their work, the quality and originality of the art, and the price at which other art collectors are ready to part with their money.
The ability to display and control NFTs on a daily basis through a marketplace is a major differentiator between NFT art and other forms of artistic art. Consequently, the worth of these art assets may be determined considerably more frequently than the value of a traditional work of art, which may be kept in private exhibition or storage for many years before its true current value is known.
Top NFT art right now
Larva Labs’ CryptoPunks provide 10,000 original portraits of various characters rendered in pixel art. Based on the Ethereum blockchain, Larva Labs is one of the earliest NFT art success stories.
The CryptoPunk album collection, released in 2017 and initially distributed without charge, has now achieved widespread popularity. The project is still one of the most lucrative NFT projects ever, with some resale photos fetching millions of dollars.
Mike Winkelman, as Beeple, is a well-known artist and innovator in the NFT community. The NFT-based painting Everydays: The First 5,000 Days sold at auction for over $69 million at Christie’s in March 2021, greatly increasing the visibility of NFT art.
After more than 13 years, Beeple’s daily publication of a new digital picture remains a tradition, with each new piece fetching six figures at auction.
Popular digital musician Pak doesn’t want his real name known (or team of artists). The Merge by Pak sold for $91.8 million in December 2021, making it the most expensive NFT ever sold on NFT auction house Nifty Gateway, surpassing Beeple’s work by a wide margin.
Nearly 29,000 art enthusiasts bought the work, which was offered as an open edition (an unlimited number of editions of an NFT). With the $52.7 million from the sale of his work Clock to the decentralised autonomous organisation (DAO) AssangeDAO, the WikiLeaks founder Julian Assange will be able to pay for his own legal defence.
4. Bored Ape Yacht Club
A collection of 10,000 original ape portraits drawn in a comic book style may be found in The Bored Ape Yacht Club (BAYC). Collectors can use each item as a digital membership card to enter the ape characters’ own online realm.
All available NFTs have been purchased, however those who missed out can still get their hands on some by visiting an NFT marketplace like OpenSea. Prices for the most expensive BAYCs have reached the multi-million dollar range.