May 25, 2023
By Anjali Kochhar
Despite the initial hiccups, resistance, and the recent cryptocurrency crash, digital currencies and cryptocurrencies have been at the forefront of technological innovation and the cornerstone of success. Many experts and leading practitioners view cryptocurrencies as the technology and digital industry revolution.
A lot has been done, and still, there is a lot of potential for artists and NFT enthusiasts in the digital art space. The outbreak of the pandemic in 2019 and early 2020 was both a nightmare and a blessing in disguise for many artists globally.
Covid-19 was a nightmare for 42-year-old artist Cam Rackam as lockdowns were imposed worldwide, his significant revenue-generating stream in the form of exhibitions was canceled. The pandemic hit hard and dried up sales and commissions. However, things began to gather pace and momentum as he ventured into digital art in the form of nonfungible tokens (NFT), a blessing in disguise for him. By the end of 2021, Rackam managed to generate revenue of $17.6 million by selling NFTs.
Gillian Howard, digital art fair founder and global fair director, told to Sothebys, “NFTs and digital art have given artists many opportunities that they didn’t have before. Digital art is a medium, the artists are strong, and I think they have a lot of potential. It has only just started.”
Some people believe that the world around NFTs is overhyped, whereas others look at it as an opportunity for them to explore in the near future.
What NFTs offer and how it works
Nonfungible tokens (NFTs) are digital ownership of an asset, such as a set of photos, social media posts, 3D objects, songs, etc. These are digital decentralized databases operating through a network of computers and powered by blockchain. The way it works is that a piece of art’s ownership details gets recorded and publicly available.
NFTs fetch a proof of ownership for any digital asset or art and help trace the original copy from others.
How NFTs benefit artists
NFTs create the authenticity of a digital art piece or object, making it easily tradeable in the market. Prior to the digital revolution, traditional art and the works of several artists did not find the desired momentum in the traditional market. The surge of blockchain and NFTs created a revolution for artists. These tokens helped artists earn resale royalties they could not make in the conventional market.
One of the striking benefits NFTs offers artists is the elimination of middlemen or intermediaries in the entire process. These intermediaries may be art dealers, curators, and conventional art market gatekeepers. Thus, it is imperative to state that NFTs eliminate these middlemen and establish a direct communication channel between the buyer and the artist.
NFTs have indeed drawn applause from several artists across the globe for making it possible for them to scale their crafts and earn higher profits and reputations through a direct interface. The flaws of the traditional market of not being able to provide artists with a basic income are corrected and rectified by the use of NFTs.
In spite of the sudden volatility and meltdown of the cryptocurrency and blockchain, artists still feel incentivized to use NFTs to showcase their work globally. NFTs are seen as a sweet spot by many artists and NFT enthusiasts.
Joh McCormack, Professor at Monash University, told to CNBC, “I think things like artworks and collectibles have become the big commodity of NFTs because they naturally fit into what NFTs are.”
The recent trends in NFTs
By the end of March 2023, NFT volumes spiked to US$ 5.67 billion from a previous high of US$ 3.08 billion, up by 84.2 per cent (QoQ). By the end of 2023, the volumes of NFTs are expected to hit US$ 22.69 billion.
Sotheby’s is one such curated platform that offers a spectacular range of NFTs ranging from Collectibles, Digital art, Pop culture, Sports, and Luxury artworks. The most versatile platform for sellers extending support is buy-now, auctions, etc., attracting buyers and sellers of NFTs across the globe to connect, transact and achieve the highest-ever sale price.
Recently Sotheby’s launched a unique opportunity platform for Metaverse enthusiasts, which tends to be a premium spot for digital art and NFTs. It attracts artists from both traditional and digital eras.
The cryptocurrency and NFT are still at their embryonic and growth phases, navigating the initial hiccups and volatile period. Despite all challenges, the NFT’s enthusiasts and community are ever-growing. Many experts believe that the NFT market will continue to scale newer heights providing endless opportunities for artists.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.