Crypto Art is Quickly gaining Market Share in the NFT Space
Crypto Art, or blockchain-based digital art, is experiencing HYPER-GROWTH in the NFT space! For those who are new, check out my definition of NFTs at the bottom of this page.***
On July 1st, Andrew Steinwold, founder of Zima Red, released an article entitled The first $100m in NFTs. The article dives into the development of the emerging, high-growth, high-velocity NFT marketplace using data from nonfungible.com.
NFTs just exceeded $100 million in transactions over the space’s only 2-year-old lifespan. The momentum started when CryptoKitties launched in December 2017. Projections are that trading volume will reach the next $100 million within the 14 months following July 2020.
Check out the lifetime trading volumes of the top types of NFTs, including Collectibles, Virtual Worlds, Game Assets, and Crypto Art:
Collectibles (e.g. CryptoKitties, CryptoPunks)
Lifetime Volume: ~$37,618,057
Estimated Monthly Volume: ~$375,521
Virtual Worlds (e.g. Cryptovoxels, Decentraland)
Lifetime Volume: ~$27,516,010
Estimated Monthly Volume: ~$986,489
Game Assets (e.g. Gods Unchained, Axie Infinity, CryptoSpaceCommanders)
Lifetime Volume: ~$10,568,255
Estimated Monthly Volume: ~$167,956
CRYPTO ART (e.g. MakersPlace, KnownOrigin, SuperRare)
Lifetime Volume: ~$1,725,391
Estimated Monthly Volume: ~$303,261
The Tell: Consider the lifetime volume for Crypto Art as a percentage of the total lifetime volume for the above types of NFTs… approximately 2.2% after some quick math.
Now look at the monthly estimated volume as a percentage of lifetime volume for Crypto Art (303,261/1,725,391 = 0.1758). Therefore, the current monthly volume for Crypto Art makes up 17.58% of its lifetime volume. Compare that to the high acceleration of the Virtual Worlds NFT market (986,489/27,516,010 = 0.0359), in which the current monthly volume makes up 3.36% of its lifetime volume.
To make this clearer, think of each types’ growth in volume like that of a stock. Virtual Worlds total lifetime volume is gaining 3.36% per month right now. Crypto Art, much earlier in its development, is gaining 17.58% per month in comparison! The Crypto Art sector is growing rapidly in an already-accelerating NFT marketspace.
*** Non-Fungible Tokens (NFTs) are non-replaceable, rare digital goods that provide proof of ownership since they exist on a blockchain. Think of a blockchain as an impenetrable, online ledger that tracks transactions between two parties.
Disclaimer: The ideas presented above are in no way investment advice. One should complete their own in-depth research before deciding to invest in non-fungible tokens.
