NFT: The digital revolution of the art market
Non-fungible tokens, or NFTs, are digital assets that are characterized by their exclusivity and authenticity, same that have gained momentum during 2021 as they cannot be duplicated or counterfeited. As non-fungible goods, we refer to those that are not replaceable by others of the same species, quality or quantity.
An example of non-fungible goods are works of art, since they are not consumed when used and cannot be substituted by others, since they are unique, are not equivalent in any case, and, therefore, are not interchangeable, unlike fungible goods such as money, which when used or consumed, is exhausted, and can also be substituted by any other bill of the same value.
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Thus, since the end of 2021 there has been a revolution in the art market, since around 41,000 million dollars were spent in NFT worldwide, an amount that constituted a transformation in this segment, making it almost as valuable as the traditional art market.
According to figures from ArcTactic, the art market is at the best moment to invest in it, following the market’s recovery after the SARS-CoV-2 pandemic slowed down and even paralyzed sales during the year 2020. A comparison in this sense, reveals that in 2021 there was an increase of 74% compared to 2020.
A case in point is that of young contemporary art (which includes artists under 45 years of age), a segment that has been gradually migrating from the traditional mode to a new form of digital expression, doubling its sales in 2021 compared to the previous year.
In this way, the NFT market has captured the attention of diverse artists, who in the search to create their own digital artworks have diversified their products, either for the purpose of innovation or to stay in trend, as well as to obtain resources to finance their activities. It has also attracted the attention of investors, who seek to invest in third-party works, speculating on the growth of this market, especially with the advent of the metaverse.
The creation of virtual universes together with the arrival of new technologies will drive the purchase of digital products, so NFTs will gain more and more strength and will undoubtedly mark the future of the art industry as we know it.
New Gen is currently working to incorporate NFT offerings into its catalog. For more information, please contact a consultant.
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