One of the biggest beneficiaries of the 2020/2021 bull market cycle was the digital collectables segment, usually referred to as NFTs (Non-Fungible Tokens). However, sales volumes of digital art and other blockchain based collectables have slowed over the past 30 days and this could have some asking, could spell the end of the digital art hype.?
The digital collectables market grew rapidly from being an obscure segment of an already obscure – in the view of “traditionalists” – technological innovation to netting digital artists Like Beeple millions of dollars. The digital art sales swelled to a hefty $2 billion during the first quarter of the year.
However, the old saying that goes “what goes up, must come down” is proven time and time again across every market, and the NFT market is not immune. According to data gathered from NonFungible.com – a website dedicated to tracking the NFT market – the digital collectables market was not sheltered from the downturn in the broader crypto currency market.
Monthly NFT sales volumes recorded from May 15 to June 15 show a very sharp decline from $291 692 704.48 to $57 304 090.53.
“The thing is that, each time you’ll notice such a quick increase on any trend, you’ll see a relative decrease, which basically stands for a market stabilization,” as per Gauthier Zuppinger, the Chief Operating Officer of Nonfungible.
What Could The Future Hold?
I’m its current state, the NFT market is still very intertwined with the rest of the digital assets market. However, one should consider that this segment is very young in comparison and that art, gaming and music are generally easier to grasp than finance – minting or simply trading NFTs makes for a great entry point into the digital assets market for the masses and brands looking to benefit from blockchain technology. There is a lot of room left for growth in this space.
