Remember NFTs? Those digital tokens selling for millions at the beginning of 2021? They’re not gone, but we’ll give you just the reason to remember these digital assets once again.
Courtesy of CryptoSlam, the monthly sales of CryptoPunk (an NFT project) reached their peak at $378.27 million in August. If this wasn’t enough to get your attention, even Visa bought its own CryptoPunk NFT. The latest trend of digital art has become prevalent to the extent where even famous companies are trying to get their hands at it.
Wait, when did all this happen?
To be honest, we’re not too sure ourselves, but that’s how the NFT price and market have behaved, especially this year.
Today, we’ll go into the details of these events with some other intriguing points to note throughout this article.
NFT’s Break the Roof
Let’s now deep dive into understanding how much NFTs have popped off the past month. It’s certainly not a surprise to see huge volumes of trading activity in the NFT market. Just months ago in March, several marketplaces recorded their all-time high trades.
Today, these numbers have gotten even bigger, and out of all, one particular platform stood out the most amongst the sea of exchanges.
Ever heard of OpenSeas?
OpenSeas currently has become the number one platform for these art tokens. The reason being its performance in August. The most notable success attained by this marketplace was – getting 3.4 billion trading volumes on their platform alone! After which, reports flooded in stating that the majority of the tokens were traded from OpenSeas last month, and since then, the website has faced massive traffic.
Let’s pray for the web developers now.
However, there have been some technical issues too, and nitpicks on social media. Regardless, this specific NFT marketplace has gathered tremendous attention from active crypto and art token enthusiasts.
Another intriguing point noted was how NFT tokens like CryptoPunks, ArtBlocks, and Bored Ape Yacht Club bagged most profits and record-breaking sales as digital tokens in August.
Why are NFTs growing at a rapid rate?
So far, we’ve seen some of the latest news, reports, and highlights of the widespread trends of these tokens. However, they don’t reveal why NFTs are on a bull run and making money at a quick pace. When you look closely, a few factors are pushing these art tokens into the limelight.
Recently, Visa (a payment company) bought a token of CryptoPunks for $150,000, according to a report by Larva Labs (creator of CryptoPunks). This created a massive delirious blitz in the NFT market.
It was observed that about 300 transactions were made the same day Visa had bought an NFT. Usually, these transaction rates range merely from 15-50 in a day. Even so, it’s yet uncertain whether or not Visa’s move was the driving force behind this NFT craze.
Apart from that, another facet is that NFTs are becoming mainstream and well adopted. They’re bound to reach a bigger audience and attract potential investors from various sectors.
Either way, one conclusion is obvious – NFTs have built a strong following, especially amongst aestheticians. Moreover, their latest popularity suggests digital tokens are here to stay.
There’s also one last factor that makes this industry popular—the NFTs and environment controversy. While many believe NFTs may not fit our environment, some people are trying to lower the damage dealt by the computers behind this technology.
Should I invest in NFTs in 2021?
Following the development of DeFi and blockchain technology, NFTs have been making headlines as the new progressing investable asset. NFTs have surged in popularity.
And this is why blockchain and cryptocurrency enthusiasts today are evaluating whether or not they should jump on the bandwagon of buying these tokens primarily after several investors, such as the auction of Christie’s NFT that gained $69 million.
However, institutional adoption of NFT remains unclear. Similar to cryptocurrencies, whether one believes they have essential value is assumed by whether one considers them as a significant technological advancement. Therefore, investors aspire to be the early birds and perceive NFT as an opportunity with a potential scope.
On the one hand, investors are not surprised as to why NFTs – a fairly innovative piece of tech – are achieving such massive investments, while on the other hand, many consider it to be a bubble that is bound to burst.
Simply put, NFTs are worth the price that the buyer is willing to pay for them, just like most objects people collect or want. Nonetheless, NFTs should be considered a high-risk investment since these tokens are very volatile and have experienced comparatively recent progress.
Regardless, according to Fox News, the market for NFTs rose to $2.5 billion in sales. There have been around 10,000 to about 20,000 purchases every week since March of NFTs on the Ethereum Blockchain, as stated by NonFungible.com.
How to Purchase NFT in India 2021?
To buy NFT in India isn’t the hardest thing to do. However, trusting an NFT marketplace can be. With the constant craze behind digital art, it’s not a surprise that scammers have been at the top of their game too. The key point to note here is to buy NFT tokens through a trusted and safe platform.
Cryptocurrency exchanges have lately started their marketplaces, and a good example of this is WazirX. A simple NFT marketplace like WazirX’s does the job for any user looking to buy an NFT token for themselves.
The idea and creation of digital art appeared only a few years ago but presently has taken the world by storm by introducing a wide variety of tokens. The month of August has undoubtedly been the best for NFTs as CryptoPunk, similar art tokens, and their fresh versions were launched. But, the big question is will NFTs evolve as big as blockchain technology today, or will they surpass the cryptocurrency fever wave? Let us know in the comments section below and share what you think about NFTs and whether you think they’re worth investing in!Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.