How NFT ART is changing the art market:
NFT ART:
A brief explanation
How NFT ART is changing the art market
– NFT ART as a term encompasses any type of artwork – whether image, graphic, animation, photography, audio or video content – for which an NFT is minted and traded as proof of ownership.
– NFT ART is not an art genre in its own right, rather it is a way of marketing (digital) art and, as an artist, digitally managing the copyright over your own art.
– There is a paradigm shift and a revolution in the art market. Artists can retain copyright over their work or share it with art fans and sell their work directly to art collectors via NFT marketplaces, eliminating expensive art dealers as intermediaries.
– Artists can benefit from NFT Art because they retain more control over their works and copyright. In addition, they can achieve higher margins or income from the art and even generate revenue from the resale of their works.
– Art collectors and investors can also find good earning opportunities with NFT art; opportunities lie both in short-term NFT art trading, but especially in the purchase of promising NFT art from up-and-coming artists whose NFT art collections become collector hits or cult.
Due Dilligence
– If you want to take a serious look at NFT ART, you should definitely invest time in researching and verifying the artist, previous NFT Art Collections, the uniqueness of the art and the strength of the community surrounding the NFT Art Collection.
– NFT ART is traded on central NFT marketplaces where artists post their works for sale, and art collectors and NFT fans can buy NFTs directly with cryptocurrencies.
What makes NFT ART interesting for investors?
NFT Art has rightly become an exciting topic for crypto fans and investors with no connection to crypto. In fact, NFT Art is less of a crypto topic and more of an expansion and change in the art market. With non-fungible tokens, virtual art or digital art has finally found the medium that the modern, international art trade needs in order to continue to flourish.
NFT art is equally interesting for crypto investors because it constitutes an additional sub-asset class in the crypto market. In fact, current analyses suggest that NFT art correlates little or even inversely with cryptocurrencies; especially in bear phases on the crypto market, high-quality, well-known NFT art collections can even increase in price.
However, it is art lovers in particular who can benefit from NFT Art as investors. With just a few steps and without a high affinity for crypto, it is possible to acquire (partial) ownership of trendy, hyped or established works of art. Art lovers who have been active as collectors in the analog art market can enter the modern art market for digital art without much training.
How can investors profit from the NFT art hype?
Investors can profit from the current NFT art hype in a number of ways, whether they are art professionals or shrewd speculators, in the short, medium or long term.
– Discover unknown artists early on
– Achieve high returns
– Diversify your investment portfolio
– Help shape the future of the art industry
How does NFT ART become successful?
In principle, art is a very subjective experience and taste is in the eye of the beholder. Ultimately, however, it is demand that makes NFT ART successful and popular. The more popular the NFT artist’s work and the more established their reputation, the more in demand and consequently the more expensive a creator’s NFT ART will be.
In detail, we have identified five factors that influence whether and how quickly digital artworks become NFT ART:
– Artist reputation: an artist who already has a name and reputation is more likely to be able to create good NFT ART. Their name and popularity with their fan base alone can generate demand and interest in their NFTs. This is at least an enormous starting advantage, although the success of NFT ART is not yet guaranteed.
– Unique art: The more unique and individual the NFT ART, the higher its recognition value. The more likely it is that an NFT collection will become a cult or collector’s item. We have seen several NFT hypes where similar NFT collections, e.g. monkeys or ducks, are often launched; similarity leads to confusion and interchangeability, while recognition value can help NFT art to succeed.
Multiplieres:
– Crypto influencers: As with crypto tokens, crypto influencers with a large following on Twitter or YouTube are an important success factor for an NFT ART Collection. This is especially true if the creator behind the NFT collection is still relatively unknown. If you manage to get some important NFT or crypto influencers to push or promote the creator and the collection, the potential increase in the floor price of the NFT collection should not be underestimated.
– Additional benefit: The best NFT ART is not only original, unique and well-promoted, no, it should also create a high (additional) benefit. Due to competition in the abundance of NFT projects, a new model has recently proven itself: NFTS with an additional function, in particular a kind of entry ticket to an exclusive (virtual) community. In this case, the NFT ART becomes a kind of membership card, creating a particularly strong bond within the community (insider vs. outsider). The value is then nourished by the membership and the exchange between the community members. One example is the NFT art collection VeeFriends by Gary Vaynerchuk. Owners of VeeFriends NFTs can participate in an exclusive web event, VeeCon, and be the only guests at Vaynerchuk’s restaurant in New York.
– Rarity of the artwork: A small factor can also be important. An NFT artwork can be issued as a unique or limited edition. The latter are often limited to 5-50 editions.
What’s next for NFT ART?
The market for NFT ART is flooded with bad work, so investors need to look out for some key characteristics of successful NFT art. Unique, original art by an established or emerging artist, with NFT art collections that offer a clear message and added value – such NFT art can become successful.
After a brief slump, prices on the NFT Art market quickly stabilized again, and in recent months it has become clear that NFT ART is here to stay.
For an NFT ART forecast, it is important to distinguish between the general trend for the market and the sector, and the performance of individual NFT Art collections:
As with any trend, we have seen a veritable flood of half-hearted, unoriginal “NFT ART” with free-rider symptoms with the NFT Art Market at the end of 2021. A market glut of confusable NFT art collections without heart and soul was launched, for which we expect a dramatic price drop (similar to those altcoins labeled as “shitcoins” in a bear market).
A consolidation and shakeout of the NFT Art market is healthy and necessary. However, it does not stand in the way of a rosy future for the NFT Art market. The global art market is currently worth almost USD 3 billion, the majority of which will soon be transacted via NFTs.
The trading volume of NFT art is rising steadily and is expected to continue to grow at a double-digit percentage rate every year. Digital art in particular will flourish as a new art form thanks to NFT ART. What sounds like a dream of the future is already partly a reality today: NFT ART or digital art is exhibited in virtual art galleries in the Metaverse and admired by art lovers all over the world via VR headsets.
This is how NFT ART is changing the art market.
More details at: (coincierge.de)
