According to Messari, the sales volume of the NFT marketplaces growth 2.882% in February. That number dwarfs the increase in monthly sales volume for each month over the past three years. The rapid growth of the NFT market follows high profile auctions of non-fungible tokens led by Sotheby’s and other well-known brands such as Time Magazine, which plans to auction three NFTs over the next month.
The NFT sector has seen explosive growth from the beginning of February 2021. NFT markets like Rarible and OpenSea saw a rebound in NFT sales as both traditional venture capital investors entered the NFT market with the entry of celebrities.
The upcoming catalyst of NFTs
Speaking to Cointelegraph, Simon Dedic, Managing Partner at Moonrock Capital – one of the largest funds in the polkadot industry and the Web 3.0 ecosystem – said the market for NFT was very different from what it was in 2018, when CryptoKitties saw popularity and explosiveness .
The infrastructure that supports NFTs has improved rapidly, allowing the sector to receive NFT services in all sectors of markets, coin platforms, trading venues, NFT financialization protocols, and more.as Dedic said:
“NFT technology piqued our interest a few years ago when CryptoKitties blocked the Ethereum network and became a major talking point in space. The NFT market has now seen growth and interest. Substantial, and there are obvious differences from this latest one Rise in popularity. “
NFTs have not yet gained adequate acceptance in the mainstream world, nor have they observed the awareness of casual investors. Yet, Dedic noted that improvements to the user interface, accessibility and user experience will be the components that will catalyze the next wave of growth in the NFT industry.
He added that “Advances in user interface and accessibility are giving way to a new audience of people who may never have been introduced to cryptocurrencies through a traditional medium before.”adding that this would lead to new capital entering the NFT market.
Moonrock Capital recently launched an NFT project for the first time in its history after focusing primarily on investments in the Web 3.0 space for years, indicating an increasing demand for NFT.
In Polkamon, a new NFT platform at Polkadot, the first round featured Morningstar Ventures, Ascensive Assets and Divergence Ventures, funds that typically invest in the Polkadot space and Web 3.0-related DeFi protocols. Funds focused on NFT have also emerged in recent months, which, according to Dedic, indicates strong interest in the NFT market:
“We are now well positioned to focus on NFT collectibles with Polkamon, our latest incubation at Morningstar Ventures. People will be able to unpack and collect valuable, high-quality NFTs in a fun way to keep the nostalgia of the.” Bringing Back Childhood Memories Providing Valuable Use Cases for NFTs. “
Are Traditional Investors Stacking NFT?
Traditional venture capitalists like Gary Vaynerchuk have also started investing in the NFT market. In a recent interview, Vaynerchuk stated that he believes NFTs will play a vital role in monetizing the web.
Vaynerchuk said that he envisions all assets such as music, books, art and collectibles, likely through NFTs, being used as tokens. “It seems to be a fundamental change: the blockchain, the digitization of all goods, the way that music is distributed, books, the way that works of art and collectibles are sold, how they can sell the fertilizers,” said Vaynerchuk.
NFTs will be the gateway to accessing those you admire
to???? Gary Vaynerchuk (@garyvee) February 22, 2021
Elvin Cheung, CEO of Cinchblock – a Hong Kong-based incubator and cryptocurrency investment company – also stated NFTs are becoming an integral part of both traditional financial and cryptocurrency markets. Cheung noted that Binance had invested in Binance Smart Chain’s first NFT market called Refinable, indicating strong demand from existing dominant players in the cryptocurrency space. He said to Cointelegraph:
“NFTs will pave the way for the future and become an integral part of both traditional and crypto markets. Once products are licensed and counterfeited on the blockchain, all types of NFTs will accelerate the growth of the market, whatever be it a work of art, music, or even real estate. “
Some of the largest venture capitalists in the technology sector, such as A16z, have also started spearheading major investment rounds in the NFT market. Recently, A16z led a $ 23 million round in OpenSea, the largest NFT market since 2017. In a paper explaining the thesis behind its investment, A16z noted that the sales volume of the top NFT sources rose to $ 100 million a week. The company stated:
“Today there are more than 3 million NFTs for sale, and the volume of sales in the major sources has grown more than 400 times annually to over $ 100 million a week. NFTs reach a wider audience and represent a whole new economy based on digital ownership. “
What will be the next trend in the NFT market?
In the medium and long term, it is very likely that some of the world’s best-known brands will enter the NFT market directly to manufacture them with their intellectual property. For example G.izmodo reported that DC, the company behind DC Comics, is investigating the sale of original DC art through NFT.
In the near future, DC is considering distributing original digital art that has been “rendered” for DC comic publications. DC’s comic book brands include titles like Superman, Batman, Arkham Asylum, Man of Steel, and The Dark Knight Returns. In the letter, DC stresses that it is not allowed to sell DC’s NFTs with DC’s intellectual property without the company’s permission, indicating that the company has serious plans to enter the market:
“As DC researches the complexities of the NFT market and we work out a sensible and fair solution for all parties, including fans and collectors, please note that offering to sell images is not permitted. Digital, which is the intellectual property of DC represents with or without NFTs, either for DC publications or outside of its contractual obligation to DC. “
If the trend for global brands to create their own NFTs and issue them through third-party markets and distributors increases sharply, it will set a new trend in the NFT market that could lead to real mainstream adoption.