The most recent spike in popularity can be attributed in some part to digital artist Beeple. The graphic designer stole the spotlight after his monumental digital collage, “EVERYDAYS: THE FIRST 5000 DAYS,” was auctioned off for nearly $70 million at the British auction house Christie’s.
Despite becoming the third most-valuable living artist thanks to the rising demand for NFTs, Beeple believes “it’s absolutely an irrational exuberance bubble.”
His remarks come at a time when the price for art pieces in the form of NFTs has taken a hit. Since February, the market value of digital artwork and collectibles plunged by roughly 70%. Data collected from NonFungible.com shows that the average price for an NFT dropped from more than $4,000 to approximately $1,260 as of April.
Some of the industry’s most prominent analysts have compared the sudden crash in NFTs’ prices to the tulip mania and the dotcom bubble. But there are others like the co-founders of Nifty Gateway, Duncan, and Griffin Cock Foster, who believe NFTs are here to stay. The twin blockchain entrepreneurs have been working to make digital certificates more attainable for the general public, attempting to make anyone an art collector.
For musicians, artists, and any content creator, NFTs are more than just a bubble. These programmable digital certificates can offer them control over their productions and increase their ability to profit. Depending on how NFTs are designed, the creator can show the authenticity of his work and receive royalties of any future sale on secondary markets instead of the proceeds going to third parties.
Such benefits are not currently available for tangible items, making a solid case for the future of NFTs.