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- Despite the NFT market dropping by 97% over three quarters of 2022, the latest reports give promising data.
- According to the ‘Italy NFT Market Intelligence Report 2022’ report, the NFT industry is expected to grow around 35% year on year throughout 2022-2028.
- The major share of NFT deals is expected to be closed with artworks and luxury brands.
Throughout 2021, NFTs were all the rage — indeed, with Bitcoin reaching unprecedented levels at its all-time peak in November, a gravitational effect brought blockchain technology into the global limelight. However, with the troublesome fallout of the Covid-19 pandemic and an array of global cost-of-living crises, the total market capitalization of the crypto industry has fallen almost 67% over one year to $850 billion at the time of writing. As a result, NFT transaction volume in 2022 contracted by around 97% over the period spanning January 2022 to September 2022.
With such statistics, it’s difficult to imagine that there’s still water in the NFT lake, and more importantly, the title of today’s article seems a little strange. However, the truth is, while industry-wide hype surrounding ordinary NFTs has settled, we’ve noticed a potentially permanent shift in the art world, where traditional artists and connoisseurs have been utilizing the mechanics of the blockchain to adapt to a brave new world of digitalization. In the aftermath of the crypto crash, we’re seeing truly mind-blowing works of art sell for record amounts.
So, it’s not Tulip Mania after all?
The initial hype of NFTs with notable collections such as the BAYC (Bored Ape Yacht Club) drew a picture of the industry as one without any true value. The value of an NFT was dictated solely by ‘hype’, not by the reputability of the creator, the complexity of the art, creativity, or artistic storytelling. As a result, such works are now worth a fraction of what their owners paid for them.
Novelty and market speculation drove the initial ‘hype’ surrounding NFTs, inflating the industry as a whole vastly beyond its true value. However, while there has been a contraction, quality projects and reputable digital artists have not only kept the NFT market afloat while the crypto winter ensues, but are beginning to grow it as a semi-independent industry. For example, throughout 2022, XCOPY’s All-Time High in the City fetched around $6.2 million at the time of sale, while Julian Assange and Pak’s Clock NFT sold for $52.7 million. Moreover, May 1st, 2022 was the single-highest value trading day in the history of NFTs, where 118,577 NFTs were sold with a total value of around $780 million.
Epicentres of the artistic world are also consolidating their respect for the NFT revolution. According to the ‘Italy NFT Market Intelligence Report 2022’ report, the NFT industry is expected to grow around 35% year on year throughout 2022-2028. This is regardless of the current economic hardship that the world is enduring. Moreover, the report also pointed to an NFT spend value increase from $671.4 million in 2022 to $3.6 billion by 2028.
Italy itself has seen a range of high-fashion brands enter the world of NFTs this year. For example, in April, Dolce & Gabbana sold a nine-piece fashion NFT collection dubbed Collezione Genesi — a marked success in the corporate books.
Indeed, it’s clear that the world of NFTs is more closely linked to the world of art than its cryptocurrency brothers. This is a fantastic revelation that has given rise to a range of projects that are beginning to take the world of art by storm.
Examples of high-end NFT art projects in 2022
Aside from established fashion brands such as Gucci and Dolce & Gabbana, both of which have made a foray into the world of NFTs as a primarily financially-motivated move, we’re beginning to see several fascinating collections arise that have gripped the art world over the past year.
“Observation” by Rafaël Rozendaal
The 2022 Venice Art Biennale saw a number of collections released, among which was ‘Observation’, a new body of work by Rafaël Rozendaal commissioned for Aorist’s exhibition.
The series uses digital techniques to evoke a meditative sense of calm through a universal language of motion, form, and color. Indeed, the blockchain and digital tools make such a collection possible. Such collections stay true to the values of the artistic world. As such, their value is independent of the hype surrounding the blockchain. There are only six artworks on sale at $24,000 per each.
Rafaël Rozendaal’s Observation Collection. Image source: Aorist
“Metamorphoses” by Concept2048
2022 has also been a big year for Concept2048. The brand immediately attracted the attention of the art community, debuting with its art collection ‘Metamorphoses’ at the 59th Venice Art Biennale 2022 on Palazzo Mora within the ‘Personal Structures’ exhibition. The project injected 2,048 enigmatically unique portraits bound into the form of a polyptych, each with its own individual value and symbolism to a stunning visual effect.
What is really unique is that the creative duo of digital artists Ekaterina Perekopskaya and Rostyslav Brenych managed to breathe digital life into the polyptych art concept that has been used many centuries ago by Giotto and Jan van Eyck. The Metamorphoses NFT collection — the fruit of this creativity, sustainable approach, and technological innovation — will see its public release on January 24.
Concept2048’s Metamorphoses Collection. Image Source: Concept2048
The fact that each piece is connected while maintaining individuality means that each holder can become a community member and contribute to addressing global problems such as climate change and others. While introducing a long-term investing appeal, it also brings some real social value, turning art collecting into something that brings not only financial gains but also benevolent results to the world we live in.
The project has already seen a part of its collection sold out during presales with the average sale price increased by over 350% throughout private Telegram sales. While The Concept2048 collection will arrive at the market in late January, NFT collectors can already join the presale whitelist on the project’s website. This is a unique opportunity for NFT holders to unite around a project community aiming to address global problems in a world of war, plague and environmental crises.
“Seven of Swords” by Justin Aversano
Seven of Swords lies within Aversano’s Smoke and Mirrors collection. Here, he photographed 78 sets of astrologers, psychics, artists, and tarot readers. The collection was displayed at the Decentral Art Pavillion alongside over 200 industry-renowned artists. With such pieces, reality is blended with the digital in intriguing, unprecedented ways. 2022 has experienced a record amount of demand for in-person NFT exhibitions as a result of such pieces.
Seven of Swords. Image source: Vogue Singapore
Future perspectives
As provided by the latest market statistics, despite the crypto winter and the collapse of many blockchain facets, the art world’s adoption of the blockchain remains strong. The latest NFT market report by Research and Market forecasted a 47% growth in Italy’s NFT market by the end of 2022, meaning that the Italian NFT market may reach a $671 million valuation.
Analysts predict that over the next five years, the country’s NFT industry will see a steady annual growth rate of 34.6%, with the spending value to reach $3.6 billion by 2028. The major share of sales is expected to be made by deals with art-related NFTs.
Not only have we seen a marked increase in the value of certain authentic, creative NFTs, but the slower pace of the market has been able to incubate and illuminate some incredible projects. The number of in-person NFT art events is on the rise, with more and more brands adopting NFT technology — be it to increase revenue or to utilize niche, enabling technologies. Out with the old, in with the new.
