Why Are NFTs Selling In Millions? All You Need to Know

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What are NFTsThe NFT art market has exploded. Read to know more.

If you have been wondering what NFTs are after seeing the trend on social media regularly, this explainer article is for you. NFTs dominated the headlines today, yet again, after Twitter CEO Jack Dorsey sold NFT of his first tweet for $2.9 million. So, let’s try to understand what NFTs mean.

What are NFTs?

The term NFT stands for Non-fungible Token. They are digital assets and can include a wide range of unique tangible and intangible items. The term non-fungible means something that can’t be replaced with something else. For instance, bitcoin is fungible as one bitcoin can be traded for another. On the other hand, NFTs are one-of-a-kind trading card and can be traded in exchange of something completely different.

Read: Crypto Terminologies You Need to Know – Part 4

What’s included?

Most NFTs are part of the Ethereum blockchain. NFTs work differently from an ETH coin as they store additional information. NFTs can be anything digital from drawings, music, digital art forms, virtual real estate, sports cards, and even digital sneakers.

What makes NFTs unique?

Each NFT contains distinguishing information that makes it unique from any other NFT in existence. As a result, it is easy to verify, preventing the creation and circulation of fake collectibles pointless. As no two NFTs are identical, they cannot be directly exchanged with one another.

Why is it becoming popular?

As NFTs are revolutionizing the gaming and collectible space, they are gaining popularity among crypto users and companies. They have been hailed by the artists as they are able to sell their artwork to a global audience in a digital format.  NFTs are scarce in nature, explaining why the high demand from gamers and collectors are driving up the price for these assets.

Read: The Evolution of Crowdfunding Powered by Blockchain

Few expensive pieces of NFT sold 

Crypto-art fans have been aggressively buying NFT artworks. Here are some of the most expensive ones:

An NFT featuring the Nyan Cat meme sold for 300 ETH or around $590,000, in the celebration of its 10th birthday.

The complete MF Collection by Beeple fetched the artist $777,777. It included many of the digital artist’s block-chain based art and a physical component.

DJ and producer Steve Aoki released an 11-piece digital art collection named ‘Dreamcatcher’ with German illustrator Antoni Tudisco. One of the works, ‘Hairy’ become a record-breaking single sale for Nifty Gateway.

CryptoPunks #7804 and #3100 at Larva Labs were both sold for a value of 4.2k Ethereum, making them the top sales for CryptoPunk tokens.

A work from Beeple, Crossword featuring an anti-Trump message, was sold for $6.6 million on the secondary sale market.

Recently, Elon Musk said he is selling his tweet containing a song about NFTs as an NFT. The bidding on Musk’s tweet has already reached $1 million.

Considering digital art has long been undervalued because of its free availability, recent sales are encouraging for digital artists. But are NFTs the future of art or just the latest buzzword in the cryptosphere – only time will tell!

Also read: 

Crypto Businesses Can Now Set Up at DMCC In Dubai

Why Stablecoins Like uOWN Token Are a Good Investment?

 



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