Originating from the fast-growing crypto-currency sector, Blockchain technology is gaining traction in the contemporary art market with the recent appearance of NFTs, a new form of digital tokens that have created a modern way of buying and selling artwork. Artalistic takes an in-depth look at NFTs and Blockchain: what are they and what profound changes are they having in the art world? (Illustration: Beeple, Everydays: the First 5000 Days)
Buying NFT art: is this the future of the contemporary art market?
In recent years, a new technology has been developed in the cryptocurrency and blockchain sector: NFTs, or non-fungible tokens.
An NFT is a data file that represents a digital object, stored on a blockchain. It is a digital asset that exists completely in the digital universe – you can’t touch it, but you can own it. A blockchain is a decentralized and secure network for storing, sharing and distributing information. There are various forms of blockchains, the most famous of which are those that use cryptocurrencies Bitcoin and Ethereum.
But the big difference between Bitcoin and Ethereum crypto assets is that the NFT is unique. It cannot be exchanged with any other NFT, let alone a cryptocurrency. This uniqueness is likely to give it a high value at the same time as it promotes transactions as a rare object: when you buy an NFT you acquire a data certificate proving ownership.
A phenomenon that is affecting various creative sectors
NFTs are intrinsically linked to cryptocurrencies. Most of them use the Ethereum blockchain as currency to purchase art.
NFT art sales: Beeple
Beeple is the pseudonym of the American artist Mike Winkleman, a 40-year-old artist whose identity was unknown to the public until a year ago. He is now one of the most renowned living contemporary artists on par with David Hockney and Jeff Koons. Beeple made a stunning entrance into the art market by selling his first piece of NFT art for $69.3 million. The token was backed by the work called Everydays: The First 5,000 Days and was priced at $100!
Beeple leveraged his millions of followers on Instagram to attract attention to the Christie's auction. Today, he represents 3% of the contemporary art market!
Breaking new ground in the music industry
The music industry was the first to see the potential of NFT artwork and other immaterial creations valued for their uniqueness.
In the NFT business, there are also renowned artists such as Aphex Twin, Gorillaz, The Weeknd and the British DJ Calvin Harris who is the head of an NFT art collection called Technofish.
In the summer of 2021, French electro musician Jacques offered his fans the chance to acquire parts of his new single in the form of NFT tokens and become co-owners. The track was thus cut into 194 copies of a second and then put on sale. Jacques says that this allows him to be free of the intermediaries in the traditional publishing chain.
Can this revolution be transposed to the contemporary art market and thrive there as well?
Revolutionizing the contemporary art world
NFT and Blockchain in numbers
The annual report published in June 2021 by the company Artprice confirms that there is an increasing demand for NFT art in the global art market.
2.5 billion dollars in NFT sales in 6 months!
NFT tokens hit a record $2.5 billion in sales in the first half of 2021. This is mainly due to online gaming, sports and art.
CryptoPunks, 24 x 24 pixel digital artworks are selling fast and the first NFT artwork - Quantum, an octagon-shaped animation created in 2014 by the New York-based artist Kevin McCoy - was sold this year by Sotheby's for $1.4 million.
Two thirds of online sales are NFTs
According to the numbers, digital artworks could eventually play a major role in the art market. Presently, they represent two thirds of online sales or 2% of the global art market over one year.
China - a driving force
Mainland China, Taiwan and Hong Kong are the driving forces in the world of NFTs. 40% of global NFT art sales are purchased in China just ahead of the United States (32%) and the United Kingdom (16%).
Digital art and its power to universalize
NFT art sales have also marked the arrival of African American and African British artists in the contemporary art market. Artists such as Amoako Boafo have driven prices through the roof. The African-American-Ghanaian, for example, sold his NFT art piece entitled Baba Diop for $1.14 million in Hong Kong in December 2020.
New collectors
NFT art is finally attracting a new and younger audience. The average age of those interested is 32. These buyers are mainly from the 2.0-generation and have been strongly impregnated with computer technologies.
Stay in the know about the latest from the art world by reading Artalistic’s bi-monthly blog. Artalistic is one of the leading online platforms specializing in showcasing and selling art online from well-established and emerging artists. Feel free to browse our selection of paintings, drawings, photographs, sculptures and limited editions prints.
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