Inflation, war, pandemics and complex markets: there are those who consider alternative investment opportunities, perhaps related to their passion. Economic growth still looks resilient at the moment, but it is not guaranteed, so investors are naturally attracted to it “containers of value” It is possibility Diversify your assets. Credit Suisse and Deloitte have been publishing since 2020 Holdings reportIt is a report that looks at wine, vintage cars, bags, fine jewelry and of course, art. In 2022, the report also includes NFTs considering the rapid development they have had in the past few years Also as digital goods to collect.
Cryptoasset, NFT and blockchain, because for Italy the priority is a strategy to attract investments
NFT, what you collect
In 2021, NFTs are emerging as mainstream collectibles. If 2021 is the year of peak, perhaps also determined by speculation, then 2022 is the year of stability. However, in the long term, the prospects look interesting and more organic. Credit Suisse’s report divides NFTs into five big categories: cryptocurrencies, collectibles, games, metaverses, and utilities.
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According to NonFUngible.com The largest category by dollar size is collectibleswhich represents more than Eight billion dollars at the end of 2021. Among the collectibles are avatars, animals, aliens, or any other type of digital object for the purpose of collection and use in video games or to be part of a community. The sports part is an important part of the assembly. For example, the most popular soccer teams code their player cards, which can be used in interactive soccer games, and the Giro d’Italia even has its own NFTs. Gambling NFTs are next, totaling more than $5 billion. Examples of NFTs used for gaming purposes are weapons or equipment for RPGs, or unique skins for weapons or characters. Art ranks third, with NFTs created around art projects. In March 2021, one of the American artist Beeple’s most popular crypto works – “Everyday: The First 5,000 Days” – passed to Christie’s for $69 million. It is a digital collage of about 5,000 photos and images created by the artist and offered for sale.
The most expensive working mace today is by Murat Pak, better known as Pak. About 30,000 users purchased 266,455 shares of the business for a total amount of about $92 million (91.8 million to be exact). A number that puts Murat Pak today at the top of the ratings of the most expensive NFTs in the world.
Metaverse evaluation
Metaverses and utilities are smaller markets, each worth about half a billion dollars. Metaverses are a collection of interconnected virtual worlds, with NFTs essentially representing the virtual “terrain” in that segment, but also Wearables and accessories to customize characters in these worlds. Instead, the utilities include different segments such as concert tickets, badges, domain names, or icons to access exclusive content.
The most liquid segment of all NFTs in terms of number of owners, wallets and exchanges is by far of games. The average price of NFT games is around $200 USD according to NonFungible.com. The segment with the highest average price is instead the technical segment with an average price of around $3,500. The main blockchains that act as enablers are Ethereum which concentrates 75% of transactions and Ronin which has 20% followed by Flow and X.
Market slowdown
total volume About $17 billion In the first quarter of 2022, the NFT market witnessed a stabilization in 2022 after a rapid rise in 2021. Although there was a downturn in early 2022 after the summer peaks of 2021, the first quarter of 2022 is still significantly higher than the same period . 2021 in medium sizes About $600 million a week. The drop from $1 billion to $300 million was determined by speculation and changing sentiment in the face of the geopolitical situation. Sales have also contracted compared to the third quarter of 2021, at about 250,000 sales per week compared to an average of about 1 million for most of 2021. The only categories that were less affected by the slowdown were collectibles and social media profiles (PFPs) although saturation market.
The Monkey Yacht Club Boredom, in particular, has become a benchmark for holdings, with more than $1.2 billion trading in the first quarter. Bored Ape Yacht Club is one of the most popular NFT pools out there. This set of 10,000 Monkey Profile Pictures is the industry leader. Dozens of stars from around the world own the Bored Ape Yacht Club NFT and advertise their ownership.
CryptoPunks status
The encrypted bad guys (A collection of 10,000 algorithm-generated image art is now the third most popular in circulation at nearly $350 million.) In 2017, Matt Hall and John Watkinson, New York-based founders of Larva Labs, created software that would generate thousands of adorable, bizarre-looking characters. At first they thought they had created a foundation for an app or game in fact it was a new paradigm in the art world.In June 2017 Larva Labs launched CryptoPunks.They are the first historical NFTs to be traded on Ethereum.NFT It consists of a collection of 10,000 very small images (24 x 24 pixels) generated by an algorithm where each avatar is different. There were many interested users, so today one photo can be worth about $60,000. Christie
Inspired by the London punk scene of Hall and Watkinson, the early days of the blockchain movement were marked by an anti-establishment spirit. It was the atmosphere they wanted to reflect in their appearance. They had to be a mix of nonconformists and nonconformists,” they explain. The London punk movement of the 1970s seemed like the right aesthetic.” The dystopian bent of cyberpunk, typical of a Blade Runner movie or a Neuromancer novel by William Gibson, was also a starting point. A cryptopunk can only belong to one person, and ownership is determined by a token in a publicly available Ethereum contract. Christie In fact, a small batch of 9 CryptoPunks has been auctioned for a record amount, in which 5 female figures, 3 male figures and an alien villain, belong to the Larva Labs Select Collection for $17 million. The escalation that NFTs have received is quite noticeable because in 2017, these CryptoPunks were trading with margins of just $30.
Auction houses and NFTs
Traditional auction houses (Christie’s, Sotheby’s, Phillips) have entered the crypto-art market in droves. Today, the three major companies account for nearly 10% of cryptocurrency sales. Moreover, reverse participation by auction houses like Sotheby’s, for example, is growing exponentially. In addition to digital art, Sotheby’s distinguishes luxury and rare items, as well as sports, luxury, and fashion among NFTs.
conclusion
The expectation is continued growth in NFTs, due to the increase/polarization of wealth and due to the continued presence of liquidity in the market. If 2022 begins with a more difficult context than 2021, a temporary consolidation of the sector should be expected. The drivers also look interesting For generational demographic change From the baby boomers to the new generation, and more interested in digital goods, social media, games and other online activities, NFT is likely to continue to grow. Asian demand is also expected to play a decisive role in countering the pace of wealth creation in this area. China and India now account for the majority of the world’s population, and e-commerce penetration is much higher than other regions. This could pave the way for increased metaverse participation and growth in this field in the future.
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