This view was put forward in the “2021 Art Market Report” jointly released by Artron Art Market Monitoring Center (AMMA) and French art institution Artprice.
According to Artprice’s inventory, nearly 300 NFT works will be sold on traditional auction platforms around the world in 2021, with a total gold of 232 million US dollars , and the transaction rate is as high as 88% .
An NFT work sold on traditional auction platforms in 2021 shocked the global art market. In March, the starting price of“The first 500 days” created by artist Beeple was only $100. In the absence of a gallery agent, no participation in exhibitions, or even auction records, the artist’s millions of followers on Instagram alone, And with support from Christie’s, one of the world’s oldest and top auction houses, the NFT work eventually sold for $69.3 million .
According to Christie’s, 18 percent of the 33 collectors who bid on Beeple’s works were from Asia . The auctioneer was Vignesh Sundaresan, founder of Singapore-based crypto fund Metapurse, and the low bidder was Chinese crypto investor Justin Sun.
Weekly turnover of NFT art in 2021
Beeple set a new auction record at Christie’s, which undoubtedly won a good start for the NFT market, and Sotheby’s and Phillips also actively participated in it. These exciting results have further contributed to the rapid development of the NFT market after record high auction prices in the summer of 2021, especially after 101 Bored Ape Yacht Club tokens soldfor $24.4 million at Sotheby’s .
The competition for the world’s top auction houses
In 2021, the three auction giants, Christie’s, Sotheby’s and Phillips, will invest heavily in exploring the business opportunities of NFT art. For example, auction houses have incorporated cryptocurrencies into payment methods by directly cooperating with crypto artists or the existing NFT art market, which has successfully attracted a younger generation of buyers who are more interested in this new form of creation and circulation of digital art than traditional collectors. Form is more sensitive.
Share of each auction house in the total turnover of NFT art in 2021
As can be seen from the ratio chart, Christie’s is far ahead in NFT art auctions. In terms of transaction volume, Sotheby’s(114) is 34 more than Christie’s (80), and the total transaction value reaches 86 million US dollars , while Christie’s In the NFT market , about 140 million US dollars have also been obtained . In 2021, Phillips sold a total of 19 NFT art works, with a gold price of 5.3 million US dollars .
As the first auction house to set foot in NFT auctions and facilitate Beeple’s record-breaking price, Christie’s has done a lot of work in cultivating collectors. In 2021, Christie’s will hold an Art+Tech seminar and create an NFT art column. In addition, in September 2021, Christie’s introduced NFT art to Hong Kong, China, and at the end of the year, it cooperated with Opensea to hold an NFT art auction (Christie’s X OpenSea).
Looking at Sotheby’s, in April 2021, Sotheby’s chose the online platform Nifty Gateway to auction a set of works by digital artist Pak ($16.8 million). In October, Sotheby’s held an auction titled “Natively Digital 1.2” at Metaverse (the exclusive platform for NFT art that can be paid with cryptocurrencies). Pak, Rare Pepe, Larva Labs and more (53 lots) have no first-rate auctions in this new virtual auction world
Through NFT art, the auction house has attracted a younger group of crypto-loving collectors. According to Christie’s statistics, the first NFT artwork to appear in the traditional auction market, Beeple’s “Every Day: The First 5,000 Days” auction, has a total of 22 million logins, of which nearly 60% of the participants are under the age of 40.
In addition, Sotheby’s also stated that 78% of the participants in NFT art auctions are new customers, of which 50% are bidders under the age of 40 . Sotheby’s uses channels such as Twitter and chat software Discord to interact directly with people in NFT and crypto circles. These efforts have significantly expanded the digital reach of the business, with Sotheby’s reaching over 16.6 million live viewers in 2021 and a combined total of over 4.2 million followers across platforms.
It has to be said that it is precisely because these emerging collectors who can easily control and own cryptocurrencies have given great support to the NFT art market, making its transaction rate (88%) far higher than the average transaction rate of global art auctions (68%).
Sotheby’s ‘New Auction Agreement’
In April 2021, Sotheby’s first major NFT art auction in partnership with PAK attracted 3,000 bidders and fetched $16.8 million. The auction, titled “Irreplaceable Digital Art,” sets an unprecedented deal: bidders can buy and sell an unlimited number of digital “cubes” (23,598 in total) for a fixed price over the three-day sale. ).
The advantage of buying multiple NFTs lies in the combined properties between these cubes. Buyers with multiple cubes can combine them in their own digital collection portfolio, that is, combine multiple NFTs composed of a single cube into a more complex unique work.
“Irreplaceable Digital Art”
(THE FUNGIBLE COLLECTION)
In December, Pak surprised the market again when he sold 266,445 “mass tokens” in the form of NFTs on Nifty Gateway, which can be collected to form a piece called The Merge.
The Merge did not exist at the time of the token sale. No one knows what it will look like. By purchasing a portion of it, every collector is contributing to its final shape. Interacting creatively with its own collectors, Pak not only delivers the keys to unlocking the art world, but also energizes the community in the process of building the creative and economic value of the work.
Using a fixed price gradient pricing strategy, these mass tokens were snapped up by 29,000 buyers within 48 hours.Astoundingly, The Merge generated more sales ($91.8 million) than the most expensive living artist on the traditional auction market , Jeff Koons’ sculpture Rabbit (1986), created in 2019 of $91.1 million.
CrytoPunks and Bored Ape
In fact, the most expensive NFT works are not necessarily “art” works in the traditional sense, but digital “collectibles”, or even real symbols belonging to a certain community. Larva Labs’ CryptoPunks and Yuga Labs’ Bored Ape, who are seen as starting the NFT revolution, disrupted the rules of the art market, taking over $75 million in total , accounting for 10% of the total NFT art normalized auction turnover. one third.
With what are considered to be the first 24×24 pixel images of collectible unique tokens, cypherpunks will outsell art history titan Francis Bacon in 2021. The value of these “classic” images of the crypto world varies by rarity.
At Christie’s New York auction of Masters of Contemporary Art, the nine cypherpunk tokens were estimated at $7 million to $9 million, and sold for $16.9 million. In June, the auction record of tens of millions of dollars reappeared, a “very rare” coin, the cypherpunk 7523 launched by Sotheby’s. The image, from nine alien punk series, was the only one wearing a mask, and the price eventually soared to $11.7 million.
Pictures from the Internet
Larva labs, the company that created the cypherpunks, achieves an annual turnover of $41.47 million in the traditional auction market, and outside the traditional auction market, according to Larva Labs, the cypherpunks have made more than a billion dollars in turnover since its launch in 2017.
Pictures from the Internet
Another superstar in the NFT world comes from the “Bored Ape” of the Bored Ape Yacht Club (BAYC), which is a collection of 10,000 ape images launched by Yuga Labs in April 2021. Like Larva Labs’ cypherpunks, each “boring ape” has unique characteristics. Their value varies by rarity. Popular with entertainment and sports stars, including Eminem and Justin Bieber, whose popularity and price go hand in hand with the traditional auction market: 9 September 2021, represented by 101 Boring Apes Yacht Club The coin lot fetched $24.4 million at Sotheby’s. The result put the start-up Yuga Labs at No. 66 on the global rankings.
NFTs in China
In China, the NFT market also has a lot of bright performances, but in terms of scale and high price, it is slightly inferior to the Western NFT market. In May, China Guardian held the first NFT art auction, in which the young artist Song Ting’s NFT work “The Peony Pavilion Rêve’s Head Butterfly Loves Flowers – Information Technology Penetrates “Me” sold for US$104,600. In November, Huayi International (Shanghai) and the only art TheOne.art organized the “Multiple Dimensions: NFT Digital Art Special”. Among them, Larva Labs “Crypto Punk #6388” won the top prize with a score of US$1.172 million.
Among Chinese artists, Xu Bing’s NFT space art work “Xu Bing Tianshu No.” was sold at a high price of US$314,000, setting the highest transaction price for a single NFT in China. Cai Guoqiang’s first NFT project “The Eternity of a Moment – The Detonation of 101 Gunpowder Paintings” was sold at a charity auction of US$2.5 million on the TR Lab online platform, setting the highest transaction record for NFT works by artists in the non-encryption field.
However, there are still many questions about whether NFT can form a certain influence in the Chinese market, which involves many details such as legal supervision and payment forms, which also leaves more room for imagination for the future development of NFT in China.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/when-will-china-launch-the-2021-global-nft-trading-war/
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