WHY NFTS ARE HERE TO STAY 2021 Report by Emergeast
www.emergeast.com
BUT FIRST... WHAT IS AN NFT? In the simplest terms, NFTs are one-of-a-kind digital tokens that are issued on a blockchain. NFT stands for Non-Fungible Token, non-fungible meaning non-interchangeable. Think of it as the opposite of cash, where five one dollar bills could easily be replaced by a single five dollar bill, one NFT can’t be replaced by another. NFTs can be used to represent any digital asset whether it be a photo, video, audio or any other type of digital file on the blockchain.
Unique Scarce Indivisible
According to the book, The Value of Art by Michael Findlay, art has 3 primary value propositions:
Financial Investment & Asset Speculation
NFT collectors look at NFTs in a similar light they do traditional art, focusing on the notoriety of the artist, the value of other works sold by the same artist, scarcity of the work, provenance, historical significance and the amount of work and skills required to produce the work.
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There are also a variety of ways to enjoy an NFT whether that be displaying it on a digital screen at home or simply sharing it with the online community - it’s up to you as to how you want to enjoy the NFT to best express yourself and your collection.
Artistic Decoration & Display
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The only difference is that artwork is for once completely digitally native. As Kenny Schachter says, “Art employing technology is not only part of culture but also human condition.”
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COMMERCIAL VALUE
SO
I STILL DON’T GET ITS VALUE IF IT JUST EXISTS ONLINE?
Status Identity
THE COMMUNITY: WHAT IT MEANS FOR ARTISTS & COLLECTORS
DIGITAL ARTISTS
COLLECTORS
NFT COMMUNITY
Recognition of digital art as a true medium of expression
Same joy of ownership that is encrypted, public & traceable
An open-minded community built on a peer to peer exchange
Lifetime of royalties on every resale of their NFT
Value creation
Natural extension of a means of creative expression that primarily lives online
Encouragement from the community & from blockchain technology that provides more freedom for creativity
Friction-free trading & transacting Diversification of art portfolio
Transparency & increased visibility. Access to art collector portfolios More dialogue in this new era of art on social media platforms like Instagram, Twitter, Discord, Clubhouse
KEY INSIGHTS NFTS IN 2021
IT’S STILL EARLY…
(Compared to the Traditional Art Market) While the NFT market still can’t be put on the same playing field as the Traditional Art Market, there have been major advancements towards the general online activity when it came to sales.
The NFT market (1B in 2021), is still nascent compared to the traditional art market
$50.1B
Total of transactions in the traditional art market in 2020.
The focus is shifting to issues such as digitization and certification of works with Blockchain technology.
$12.1B
Reached in the volume of the online market, almost doubling from the previous year.
According to the 2021 Art Market Report by Art Basel and UBS.
ART AMONG MOST POPULAR NFTs What’s keeping NFTs afloat? It’s not just art but it’s the increasing utility of NFTs across different industries. The most popular NFTs remain collectibles that are a part of a unique collection often with added value (think of these NFTs as baseball cards). One example are Cryptopunks which sold up to $11M in June of this year. NFT art is also garnering attention as more fine artists enter the space. These NFTs can be recognized for their more intricate design that require more time and skill spent by artists. Whether it be a personal connection, an investment opportunity or faith in the artist’s career - there are many reasons NFT art is gaining popularity among collectors. According to the Non-fungible.com
LESS FRENZY DOESN’T MEAN NO GROWTH It is actually quite the opposite, this is where the fun begins. Artists and collectors are solidifying why and what they want to get out of the NFT space. While no NFT is near Beeple’s historic $69M Christie’s sale back in March ’21 (just yet), the NFT market is certainly still at its beginning as new projects, artists and collectors emerge and take advantage of the opportunities blockchain technology offers.
According to the Q3 Report by DappRadar.
In Q3 2021, NFT sales surged to $10.7B as crypto asset frenzy reached new highs, up more than eight-fold from the previous quarter. Yet, despite growing sales, the number of NFT buyers remain relatively small. According to NonFungible.com, there were just 265,924 active wallets trading NFTs on the ethereum blockchain in Q3. So, if you still haven’t entered the NFT space, you’ll still be early!
THE VALIDATION IS HINTING AT LONG-TERM ADOPTION Similar to the boom of the internet and e-commerce companies in the late 1990s, NFTs may see rise and falls, and maybe an eventual market correction but blockchain technology provides too many ground-breaking solutions we’ve been waiting for to not stay and evolve. In a few years time, wider adoption will continue to grow as more people will have a digital wallet and a dynamic collection of NFT Art to create conversation and connection on a deeper level.
SO WHY COLLECT NFTs AGAIN? 1. Diversify your collection with new modes of expression: Intrinsic joy of owning a digital artwork as a personal asset. An NFT collection is an authentic way of reflecting our personal interests online 2. Be a part of a growing community: The NFT space holds pride in the communities that are forming from different NFT projects. NFTs are an extension of what blockchain is advocating for: peer to peer exchange, artist to collector relationships and a genuine way of interacting with and supporting each other 3. Be a part of the ever-evolving future: What you buy today will be representative of our time. In the future, our wallets and NFT collections will be a reflection of our personality
READY TO START YOUR NFT COLLECTION?
For more information on how to start: alia@emergeast.com
WhatsApp: +971588317446 www.emergeast.com
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About Emergeast Emergeast is the MENA region’s first and leading online gallery championing emerging and mid-career Middle Eastern & North African artists while empowering the latest generation of collectors through storytelling. Through a highly curated selection of MENA artists, the mission is to facilitate a platform designed for cross-cultural dialogue between art curators and collectors, – both young and seasoned – with a growing number of artists from the MENA region. Emergeast aims to break down the barriers to art collecting by facilitating access to promising artists from the region at accessible prices. With the vision of becoming the region’s chosen cultural lifestyle destination, Emergeast continues to look for innovative ways to deepen the connection between their inspiring artists and the larger art community. Emergeast’s essence lies in collaboration and elevating the collective consciousness by enhancing everyday life through art and beauty.
www.emergeast.com