The market that suddenly became popular in the 2020s is NFT. Among them, art works have become quite major. There are various works of NFT, but I will explain some of the reasons why NFT sells well among them.
What are NFTs?
NFT is an abbreviation for “Non-Fungible Token”. It has the meaning of a non-fungible token, anyone can sell it, and it can be bought and sold without any complicated knowledge about blockchain. When NFT is resold, the reward to the author will be included. In recent years, interest in NFTs has increased, especially among young people, because it leads to long-term profits for creators. It is now possible to add value to the work because it is clear that the owner is clear.
Why NFT art sells?
Many NFT art works are now on the marketplace. But why does art sell?
The biggest reason why NFT sells is that you can earn money. Creators are motivated because they can earn money with their own works. The market price of NFT is not stable at all, and it is a pin-to-pin, but even so, if it sells, everyone will be happy. NFT is expanding the market rapidly and is expected to expand further, so there is also a future.
The number of projects that add value as a sales method for NFT art has increased significantly. By purchasing this, you can join a limited community or give other priority purchase rights. This has resulted in greater benefits for buyers and increased the number of buyers.
Since NFT is still in the future market, the rarity value of the work is very high. Along with the above, depending on how you sell it, you can add scarcity value. For example, you can increase the value of your work by including a “limited edition” or “today only” boarding pass. If you own a rare NFT, you can sell it at a high price, which is a merit.
NFT art has a mechanism in which royalties are paid to the creator each time the work is resold. There is also a considerable advantage for the creator side due to the mechanism that the creator has a high possibility of generating income. You can earn income by increasing the value of your work.
Most notable work genre in NFT
Various works such as games, music, art, photos, videos, etc. are exhibited on the NFT marketplace. But games and art are by far the most popular. Games are purchased by core gamers, and in the case of art, as introduced in the article below, the advantage is that there are so many ways to use it. Therefore, art is very popular with users.
Demand and supply of NFT art
The NFT market suddenly expanded explosively around 2020. The global NFT transaction value has tripled in one year, from $24.5 million in 2019 to $82.5 million in 2020. and $17.6 billion in 2021. It was said that if this trend continued, it would become a ridiculous market.
Source : 調査結果 (caa.go.jp)
However, NFT trading volume has declined since mid-2021. It is said that the NFT bubble burst due to the rapid expansion of NFT. It will be interesting to see how the market changes in the future.
Legislative development is an issue
The NFT market is still in its infancy, and since it is a new industry, legislation has not yet caught up. Now there are many cases where even if there is some kind of trouble, it will be self-responsibility, so attention will be paid to the future response of each country. Also, NFT art is also a problem with fraudulent commercial law, so be careful.
Bybit’s NFT Marketplace
Bybit has an NFT Marketplace. If you open an account, you can actually enter and trade, so let’s try it.