NFT Mania and ETH Value Capture

NFT sales continue to break records.

Although recent shining star is Art Blocks (NFT generated artwork platforms) and generative art (generative art), but it seems no NFT items left behind. Everything seems to be in an ascending mode, and there is no sign of stopping.

Yesterday, the following piece of Fidenza (ID # 313) NFT works of art were sold at a price of 1,000 ETH (Note: Fidenza by NFT series generated abstract art collection creative artists Tyler Hobbs, a total of 999 works of art Fidenza) .

NFT Mania and ETH Value Capture

Currently, Ringers reserve price is about 100 ETH, prices compared to the previous weeks has risen about 4 times (Note: Ringers is generated artwork series the artist Dmitri Cherniak creation, including a total of 1000 Ringers generative art NFTs, as follows As shown in the picture) .

NFT Mania and ETH Value Capture

For a better understanding, the chart below shows how the average selling price of Ringers (white line, priced in ETH) has changed over time:

NFT Mania and ETH Value Capture

Above: Changes in daily sales ( yellow histogram) and average ETH price (white line) of Ringers Generative Art .

Recently, the Chromie Squiggle graffiti artwork numbered #4637 (see the picture below), the NFT graffiti art recently changed hands for US$275,000 (Note: Chromie Squiggles is a graffiti artwork created by Snowfro, the creator of the Art Blocks platform Item) .

NFT Mania and ETH Value Capture

Above: Chromie Squiggle graffiti artwork numbered #4637.

In the past 30 days, the average selling price of Chromie Squiggles has risen from 2.5 ETH to 10 ETH:

NFT Mania and ETH Value Capture

Above: Chromie Squiggles art’s selling price growth trend.

At the same time, such as CryptoPunks ( encryption punk purchase requirements), Bored Apes (silly simian), Pudgy Penguins (pudgy penguin), EtherRocks such as picture type NFT project also increased to a new level.

The current reserve price of CryptoPunk is close to 70 ETH , which has never been higher:

NFT Mania and ETH Value Capture

Above: Average ETH price ( purple line ) and average USD price ( green line ) of CryptoPunks avatar

The reserve price of Bored Apes has also risen all the way:

NFT Mania and ETH Value Capture

Above: Bored Apes’ reserve price growth trend on the OpenSea platform.

All these icons depict a similar story, as Cooper said, we are in a “cultural bull market” brought about by NFT.

NFT Mania and ETH Value Capture

Visa purchased a CryptoPunk

On August 23, the payment company Visa announced that it had purchased a CryptoPunk NFT avatar:

NFT Mania and ETH Value Capture

Visa bought the CryptoPunk avatar numbered #7610 for approximately US$150,000, which is one of 3840 female CryptoPunks avatars. CryptoPunks are pixel art avatars NFTs launched by Larva Labs in 2017. There are 10,000 in total. Each CryptoPunk avatar has its own characteristics.

When asked why Visa bought the CryptoPunk, Cuy Sheffield, head of Visa’s encryption business, said in an interview that CryptoPunk “leads the wave of NFT technology and NFT business.”

Previously, Visa has announced that the company will settle USDC on Ethereum ; and now, Visa is also making the emerging world of NFTs more acceptable to people.

As Ethereum and NFTs become more and more mainstream, there will be fewer and fewer discussions on ” What is the value of these NFTs? ” and actions such as “Look at this NFT I just bought!” More common.

We have steadily entered the era of trading NFT images…and people are doing this by using ETH.

NFTs… the next 1CO mania?

The term “1CO” (initial coin offering) has been seriously tainted, and this is for good reason: the 1CO mania of 2017 was built on unfulfilled ambitions and misleading promises, and many people paid a heavy price. .

Therefore, when I propose that NFT mania is the next 1CO, it does not mean that we should bring all the negative factors related to 1CO together. But this does not mean that NFT mania has nothing negative, but it will be different from what we have seen in history. If you want to survive in the field of crypto, I think Edward Chancellor had to read the book ” financial speculation History ” (Devil at The hindmost the Take: A History of Financial speculation) .

NFT Mania and ETH Value Capture

I would like to make two important conclusions in the book:

  • Financial bubbles are produced entirely on the level of human social psychology.
  • Humans can trade almost anything.

The encryption economy revolution is a scarcity revolution. We have completely redesigned scarcity, including what it means, how it is produced, and how we respond to it.

NFT Mania and ETH Value Capture

This is why the cryptocurrency field is so prone to bubbles of various types and sizes .

We have created scarcity on the Internet, which will inevitably trigger various types of financial bubbles. “Pictures on the Internet” is almost as old as the Internet itself.

When pictures meet scarcity, let the craze begin again.

Another conclusion of this book is that people may ignore any fundamentals or rationality when it comes to asset prices .

Because NFTs actually have no fundamental fundamentals! This is why they are different in meaning from 1CO fanatics: 1CO fanatics are a series of projects that promise to bring a new financial model; while NFTs have no such promises, they are actually just pictures, and their attractiveness depends entirely on imitation. Game .

“I like it. Will others like it? I think they will. Then I will buy it.”

If you think you are good at this kind of imitation game, good luck!

The revival of human culture

Due to the lack of any financial fundamentals, the NFT market can only be evaluated by the image/picture they represent . If we do enter the frenzy of NFTs, then a lot of capital will be invested in speculation on these pictures .

After billions of dollars have been invested in these competitive artists and NFT art projects, what will be the quality of digital art on the other side of this craze? The generative art innovation brought to us by Art Blocks may completely change the paradigm of digital art.

Since the NFT market is based on people’s artistic taste rather than financial fundamentals , we can imagine that the art that appears on the other end of this craze will be very tasteful.

I really like art, so I will be happy to see what human beings can produce in this art speculation frenzy! I hope we can unlock new ways of expression for individuals and communities, and inspire art in a more powerful way!

Sitting comfortably: simply hold ETH

Speculating on NFTs is not easy. Most of the time I don’t even understand this.

You should not be forced to participate because other people are doing this; and there is no guarantee that any type of fanaticism will develop well. This article itself may mark the NFT craze “touching its peak”.

For those who are cautious, remember that everything that happens on Ethereum will flow back to ETH .

NFT Mania and ETH Value Capture

Are there a group of silly ETH whales and Z era young people gambling on NFT pictures?

Well, if you are an ETH holder, especially an ETH pledger (verifier), then you also have indirect exposure to NFT mania , especially when companies like Visa are legalizing ETH as Assets and use them as funds to purchase NFTs. Ultimately, ETH should be able to benefit from any speculative mania that occurs on Ethereum.

Any market frenzy will bring winners and losers, and winners win money from losers. If you hate risk and want to make sure that you are still a winner, you can choose to simply hold ETH.

If the NFT mania does develop into a 1CO-scale market, you can expect that ETH will go hand in hand with this mania.

Written by: David Hoffman, Bankless writer

Editor: South Wind


Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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