As numerous NFT artworks smoothly go through auctions, the art world is witnessing a surge in creative fervor. More and more content creators and artists are entering the NFT space, placing their works on the blockchain and turning them into NFTs, breaking free from the constraints of traditional internet platforms.
01 The Value of NFT Artworks
How substantial is the scale of NFTs in the art market? In just the first four months of 2021, the sales of NFT artworks reached a staggering $437 million. Despite a somewhat stagnant overall development in the NFT industry in 2019, the trend in the digital art market remains radical. On February 28, 2021, renowned Canadian artist and musician Grimes auctioned eight of her art pieces in NFT form, generating a revenue of $5.81 million in less than 20 minutes. These eight artworks, all themed around angelic babies, with the highest-priced piece being “Death of the Old,” depicted an angel flying around a glowing white cross in the form of a baby, ultimately selling for a high price of $389,000.
“Some Other Asshole” is XCOPY’s seventh NFT artwork, uploaded to an NFT platform in September 2021 and acquired by singer Snoop Dogg for $3.8 million.
“Ocean Front,” created by artist Beeple, serves as a warning about the unpredictable destructive disasters that climate change can bring. In March 2021, the artwork was listed on the NFT trading platform Nifty Gateway and was eventually bought by the famous NFT collector Justin Sun for $6 million.
The mentioned artworks indirectly highlight the gradually emerging value of NFTs in the digital art domain, with prices reaching hundreds of thousands or even millions of dollars. This has led to confusion regarding the value of these “artworks” presented merely in the form of images. In terms of artworks, their value is reflected on one hand in the aesthetics or craftsmanship of the artwork itself, and on the other hand, in the uniqueness of the artwork. When an artwork loses its uniqueness, its value diminishes. NFTs achieve uniqueness through blockchain, as digital assets can be made unique, they possess ownership that prevents replication, making them a tradable commodity that doesn’t devalue due to excessive copies. Therefore, when the digital world can achieve the uniqueness of “artworks” through digital technology, these “artworks” naturally acquire value, leading to market demand. There are two main types of demand in the market for digital artworks: one is commemorative, where individuals want to support brands or idols through this means; the other is profit-oriented, as digital assets, under the influence of NFTs, are unique and scarce, and scarcity creates value.