NFT (Non-Fungible Token) art and collectables have seen extreme price action over the past months with prices rocketing up exponentially. It is truly a great time for NFT artists and early adopters alike.
Extremely talented NFT Artists are cashing in on this phenomenon selling beautiful pieces for hundreds of Ethereum each. Below is a list of some notable NFT Art that went for top dollar in the last few months:
- 468.07 ETH - The Complete Mf Collection by Beeple
(Last Sold 12/12/ 2020) - 302.5 ETH - Genesis by Trevorjonsart (Last Sold 10/17/2020)
- 233.788 ETH - Boardwalk by Maddogjones (Last Sold 2/19/2021)
- 150.293 ETH - Afraid To Be Myself by FEWOCiOUS (Last Sold 1/2/2021)
- 148.888 ETH - Heroines Weight Of The World by Hackatao aka Josedelbo (Last Sold 3/6/2021)
- 140 ETH - Queeny by Hackatao aka Josedelbo (Last Sold 3/3/2021)
- 113.626 ETH -Cubist Satoshi by Trevorjonsart (Last Sold 2/25/2021)
- 113.626 ETH - The Bitcoin Angel by Trevorjonsart (Last Sold 2/25/2021)
- 103.4 ETH - First Supper by Hackatao aka Josedelbo (Last sold 2/28/2021)
- 95.519 ETH - A Peak In My Head by FEWOCiOUS (Last Sold 2/15/2021)
NFT Collectables have also experienced extraordinary gains, one of the most popular being CryptoPunks. With 10,000 unique collectable characters, CryptoPunks are essentially algorithmically generated 24x24 pixel images of punky-looking boys and girls [1]. As of February 2021, 6,106 of the 10,000 CryptoPunks had been sold.
In the past few months CryptoPunks, some originally having been given away for free, have seen prices go from 1k to 10k to the moon with no end in sight. The average selling price today is roughly between $30-40k and top prices pushing multiple of millions of dollars [2].
The image below shows the top sales by Ether value with the top spot being over $2 million.
However, NFTs are much more than just works of art and collectable punks. Recently, sports and music stars have hopped on the NFT bandwagon. Quavo, 2 Chainz, and Lil Baby all released special NFTs for NBA All Star weekend in March 2021.
Even Twitter CEO Jack Dorsey is trying to snag a piece of the NFT pie. This week Dorsey created and listed an NFT of his first-ever tweet, simply stating “just setting up my twttr” [3]. With a current bid of $2.5 million, this sets a new precedent that tweets can now be sold as NFTs.
Clearly NFTs are going mainstream as everyone and their mother is trying to capitalize on this booming craze.
While NFTs are reaching new all-time highs, there are many concerning elements being overlooked by the rabid masses throwing their money at the latest crypto craze. To start, NFTs are an illiquid asset and the majority of the people buying NFTs view them as investments that they will sell to someone else for a higher price.
People are and will continue to make money on NFTs. As I previously stated, it is truly a great time for NFT artists and early adopters alike. With the “normie” masses just beginning to jump on the NFT bandwagon, the prices will likely continue to increase but the million-dollar question is – For how long?
The majority of NFT art and collectables have no proven price floor. With FOMO and greed fueling the exponential price run-ups it is only a matter of time for the bubble to burst.
It is not a question of “if” the NFT bubble will pop, the question is: When the NFT bubble pops, what impact will this have on the crypto market as a whole?
Will this financially crush the crypto-newbies brought into the market by the NFT boom and hype?
When it comes to crypto, they always say never put in more than you are willing to lose but when greed and FOMO control your decisions, it is certain someone will get caught holding the bag when it all goes south.
Will the NFT bubble single handedly lead to the next crypto bear market? Or will it be one of multiple factors?
Only time will tell…
-JR1-
Sources
[1] 34 Unique CryptoPunks NFTs Have Been sold for $1 million
[2] Cryptopunks topsales
[3] You can buy the first-ever tweet. The current bid: $2.5 million
