Generative Art and Returns on Artblocks
In this article we have checked all curated artworks of the series 1–8 of Artblocks and evaluated the return on investment of this outstanding platform.
In generative art, the focus is not only on the visual output but also on the creation of the rule sets for the artwork(s). Thus, the artist provides the rules and grants the algorithm the power to decide how often and how to interpret them.
The Artblocks platform was founded in 2018 by Eric Calederon aka Snowfro. Snowfro, through his early entry into the NFT space and CryptoPunks, was able to raise the funds to launch his project. On Artblocks only generative art is published.
Snowfro has taken this concept to a new level with his platform. His idea was born from combining decades of generative art practice with the latest technologies that enable the era of digital artwork. Snowfro has established Artblocks as a platform for generative projects by applying the principles of generative art to the creation of digital artworks.
Artblocks aims to provide a platform for artists to present their vision on a new, decentralized level. It applies the principles of generative art to create unique artworks that cannot be predicted by anyone. Each artwork is unique despite the application of the same algorithm.
There are four different categories on the Artblocks platform:
1. Curated (number: 84 collections)
They are selected by a so-called Curation Board, based on innovation, technical implementation and aesthetics. It consists of artists, curators from other galleries, founders, collectors, and art consultants. Dimitri Cherniak (Ringers), Derek Edward Schloss (Proof), and Anika Meier (König Galerie) are on board, for example.
2. Presents (number: 361 collections)
Projects in this category are also reviewed by Artblocks, under the same criteria as the curated series, but the onboarding is not as strict. Artists who have already released something on Artblocks, be it in curated or any other category can be placed under this category for example.
3. Collaborations (number: 8 collections)
This section includes collaborations with other galleries or other institutions. For example, Artblocks works closely with the well-known Pace Gallery, which is why 7 out of 8 projects were published together with Pace. The other project was created in collaboration with Bright Moments. Thus, Artblocks manages to connect with traditional distribution channels and well-known houses and innovators.
4. Exploration (number: 2 collections)
More of a place to try things out. Projects here include Friendship Bracelets, which were distributed as an airdrop for all Artblock holders.
As of October 2022, the curated section continues to include only curated projects, but they are no longer organized into “series.” From 2020–2022, each curated project was part of a series of 4–13 individual projects, of which there are 8 series in total. We will look at these in more detail.
For our evaluation of curated series, we evaluated the numbers on June 28/29th 2023 from Opensea. This includes mint prices, current floor prices and market cap. For collections with varying mint prices, like in a adutch auction, we evaluated 10% of the artworks in each collection as an example.
Series 1
Series 1 is of course particularly noteworthy here. It is and remains the first curated series with the first release ever, and could get a special historical context in later years. A special role in series 1 plays the project Chromie Squiggles, which was released by the founder Snowfro.
Although the edition Genesis by DCA (Daniel Calderon, Snowfro’s brother) was accidentally released first, the Chromie Squiggles still count as a Genesis edition. With the different features of the Squiggles, the Day One Squiggles are also interesting, which were sold on the first day. All Squiggles up to number 541 count as Day One.
Average yield as of mint: +10.000%
Series 2
As in series 1, you could have invested blindly in series 2, minted and not made a loss on any project.
The most famous edition of series 2 is Ringers by Dimitri Cherniak with a return of almost 42000%.
Average yield as of mint: +4.800%
Series 3
Series 3 also produced only one thing, positive returns. The most successful Artblocks project in terms of performance, is Fidenza by Tyler Hobbs with a percentage increase of 47,000% which equals 417X.
However, measured by market cap, Chromie Squiggles by Snowfro came out on top.
Average yield as of mint: +2.335%
Series 4
In series 4, losses would have been made with all mints, except for the series glitch crystal monsters, which was also due to the general hype in the NFT and generative art area, as the mint prices and demand were correspondingly higher. From here on, caution would be the order of the day, and now at the latest, you should carefully consider which works you buy. On average, one would have halved his investment here.
Average yield as of mint: -64%
Series 5
Just as in series 4, almost only losses were incurred in series 5. Only Matt Kane’s Gazers series stands out positively here, with an average return of 7.100%, i.e. a seventy-fold increase.
Average yield as of mint: +120%
Series 6
Series 6, if you look at the individual projects, again has better returns on average. If one had gone along with every mint here, the risk would be minimized. Of course, it is also due to the lower purchase prices, since just at the beginning of 2022 the massive growth of the crypto market was interrupted.
Average yield as of mint: +150%
Series 7
Series 7 has averaged again very nice returns. The most famous piece, and in our opinion the most visually appealing, is the Anticyclone collection by Williamapan with a nearly six-fold increase in mint price.
Average yield as of mint: +182%
Series 8
In series 8, the returns are again balanced and no general direction can be identified. The Fontana project had the best price development with a six-fold increase.
Average yield as of mint: -17%
Conclusion
The Artblocks Curated series could represent a unique moment in the history of generative art. Such a number of the best emerging generative artists of the current time, concentrated on one platform is unique so far, and also questionable whether something similar will be repeated again.
One reason for the success of this division could be the combination of blockchain with generative art. For many artists, it is not the ultimate decentralization that is important, but the use of the technology itself, in the creation of art.
Unlike other art forms such as paintings, photographs, etc., there is no need to change the medium, it is the native art on the blockchain. Almost all types of generative art that achieve record prices in traditional and digital marketplaces (Sotheby`s, Christie`s, Opensea) are represented in series 1–8 of Artblocks.
Apart from Artblocks, the Autoglyphs project released by Larva Labs (Cryptopunks) and Cryptopunks, also from Larva Labs, are worth mentioning.
The average return of all mints series 1–8
The average return of all mints as of 28.06.2023 would be about 2,200% which means 22x if one had invested in all projects.
Author:
The Wolf of Art Street / Research Analyst at Eternalyst
Disclaimer
The following evaluation and the information, analysis, and opinions contained therein (collectively, “Information”) are for informational purposes only and do not constitute investment advice or an offer to buy or sell artwork or related financial instruments. The Information has been compiled from publicly available sources and from the Art Blocks platform, which empowers digital artists to influence their work through alphanumeric figures generated by the Ethereum blockchain.
While we strive to ensure that the information in this evaluation is reliable and accurate, we make no warranty or representation as to the accuracy, completeness, reliability, or suitability of this information for any particular purpose. Any user should therefore not rely solely on this information, but should seek independent advice from appropriate professionals before acting or making any decisions based on this information.
Past performance is not a reliable indicator of future results. All investments, including those in works of art, involve risk, including loss of principal. Users should also keep in mind that the information contained in this evaluation is general in nature and is not tailored to the specific needs, goals or circumstances of any individual.
It is important to note that we have no relationship with Art Blocks, the artists whose works are curated on the platform, or any third party mentioned in this evaluation. Any opinions expressed in this evaluation are our own and do not represent the opinions or recommendations of Art Blocks or any other party mentioned.
This evaluation is published on Medium and may be read and used by third parties. We assume no responsibility for the use or interpretation of this information by third parties.
