As with any emerging trend, there are those who have their reservations about the long-term value of non-fungible tokens, particularly as they apply in the art world.
In an analysis piece for Cointelegraph, Rachel Wolfson considers not just the market for art NFTs, but also the fact that their underlying value is tied to the cryptocurrency market, and its associated volatility.
The author tracks the fact that recent Bitcoin falls in particular, appear to have slowed high-value art NFT trading, however, during the month of August, individual NFT sales have exceeded more than $1 million (€849,000) dollars on a regular basis.
Other lower value NFTs have shown steady performance too, Wolfson reports, such as CryptoPunks and EtherRocks.
A decentralised finance (DeFi) investor, Santiago Roel Santos, is quoted as saying he expects to see the next Picasso emerge from the NFT art movement.
“At this point, every major artist, creator and studio is thinking about NFTs and have a strategy.”
“There will be a bear market, and certain NFTs will be less than they are today, but this will also enable new buyers to come in and for EtherRocks to change hands. I think there will always be a market regardless of the price,” he said.