Last year could easily have been called the year of the non-fungible token (NFT). Collins dictionary even chose it as the word of the year.
What was previously a term unheard of outside the most dedicated crypto spheres is now a buzzword around the dinner table and on the nightly news.
Online platforms dedicated to NFT sales — such as OpenSea and Rarible — have led the way. But major art auction houses, including Sotheby’s and Christie’s, have taken an interest, sending NFTs mainstream.
Monthly sales of NFTs are now near $2 billion. The NFT sector as a whole currently has a market cap of about $7 billion.
And this red-hot sector is only going to grow as more uses for NFTs become apparent.
While you may know NFTs as “digital art,” that’s only part of what they can do.
That’s because an NFT’s true value doesn’t come from the art it represents, but from its ability to verify and enforce ownership of digital assets through the blockchain and smart contracts.
And, if you’ve been keeping up with our daily content on Weiss Crypto Daily, you’ll know that smart contracts are the key to several exciting decentralized finance (DeFi) opportunities we’re watching.
But before we look forward to the future of NFTs, let’s look back at the top three most expensive NFT sales for the past year.
1. Everydays: The First 5000 Days: This NFT is a collage of daily graphics designed by Mike “Beeple” Winkelmann that date back to 2007. It sold at Christie’s auction house in March of 2021 and thrust NFTs into the public limelight.
The sales price: $69.3 million.
2. Human ONE: Another NFT by Winkelmann, this piece of art is a hybrid of physical and digital mediums, as the NFT is a video of a man displayed between wooden frames.
It sold for $28.9 million.
3. CryptoPunk #7523: This NFT is one of many pixel art characters in circulation created by two Canadian developers who run Larva Labs.
This one, minted in 2017, has been nicknamed “COVID Alien” because it has a mask and a surgeon’s cap.
It sold for $11.75 million.
Will all NFTs be this valuable?
Of course not. Just like with any type of investing, there’s always some risk involved.
But it’s not hyperbole when I say that NFTs now represent the same wealth-building opportunity that Bitcoin had when it first debuted.
That’s why our founder, Dr. Martin Weiss, met up with a pioneer in the NFT space for our just-released NFT Investor Summit — to get his opinion on where NFTs will go from here … and how investors like you can use them to build your wealth.
There’s an abundance of actionable information there, so I suggest you watch it now.