The cryptocurrency ecosystem has not yet recovered from the continuous rollout of digital currency projects, decentralized finance applications, and smart contracts, and we are already seeing an influx and media buzz of Non-Fungible Tokens (NFTs) around. While NFTs are not a new innovation in the world of crypto, the mainstream recognition that they deserve is just currently being accorded, and that is thanks to the unrelenting rollout of various forms of NFTs by the rising hoard of NFT artists out there.
NFTs are unique, one-of-a-kind items with ownership records on the blockchain. The evolution of Non-Fungible Tokens is now making it for artists anywhere in the world to claim ownership of their piece. Whether it be a digital drawing, a real-life performance video, or even a uniquely designed gift card. NFTs purge out imposters and offers the original creators the liberty to transfer ownership at a deserving price.
NFTs and Their Burgeoning Valuations
The growth and popularity of NFTs today take their origin from the burgeoning prices of some pieces. When the purchase of an NFT by digital artist Mike Winkelmann, also known as Beeple, was flipped for $6.6 million, the entire NFT metaverse went wild, seeing that it was the biggest amount paid for a virtual piece up to that point.
Unbeknownst to many, Beeple will yet set a new standard per the highest sale ever for an NFT with his piece dubbed “Everydays: The First 5,000 Days.” The artwork was the combination of the first 5,000 digital art pieces he created from 2007 to date. The piece found its way to legacy auction house Christie’s and was claimed after a bid worth $69.3 million including fees placed for the historic. The winning bidder was later identified to be MetaKovan, the founder of Metapurse, the largest fund for NFTs in the world.
Besides Beeple’s mindblowing piece, many creators are also cashing in on NFTs with the likes of Twitter CEO Jack Dorsey placing the first-ever tweet up for sale. At least, the sum of $2.5 million was placed as a bid for the tweet.
While people are looking to cash in on the NFT craze, there is a tendency to forget the underlying role they came to play in today’s dynamic digital ecosystem, and many fear that the bogus valuations may override their long-term potentials.
But Are NFTs Just a Bubble or Here to Stay?
Despite the rising fame of NFTs, the technology behind them is still in its infancy and begging for discovery. With the possibility to deploy NFTs for use in creating tickets to events, identifying unique voters, and much more, it is certain that more developers will outgrow the attractive pricing of digital artwork-turned NFTs. Moreover, it will push for real-world Non-Fungible Token-based solutions for the world’s benefit.
The skyrocketing pricing of NFT artworks is outrightly unsustainable in the longer term, but the role of this offshoot of blockchain technology is just warming up, and will yet hit a more addressable market in the near future.