MILWAUKEE — NFTs have skyrocketed in popularity in 2020 and early 2021, but where does the market for the one-of-a-kind digital asset go from here?
According to Forbes, the value tripled in 2020 alone, but is there a limit as to how far the surge can climb?
“The price at which some of this stuff is going is baffling,” said Garett Laugavitz, founder of the startup Cipher.
He’s not wrong.
The highest-selling NFT art piece sold for $69 million in March. An NFT of the viral video ‘Charlie Bit My Finger’ sold for nearly $761,000.
The numbers may come as a bit of a surprise, considering reports of the market cooling off since an April peak.
“I think people are starting to dip their toes in the water,” Laugavitz said.
But the market fluctuation isn’t a reason to dismiss their future.
“I see growth in the space and a resurgence maybe as soon as late summer,” Laugavitz added. “We might see stabilization of the cryptocurrency market.”
A key to its future could lie with the number of different applications in which NFTs can be used.
“Right now it’s pretty linear, just like digital basketball cards and animated fancy art,” said Adam Sarkis, co-founder of the startup Spree. “When you see the different applications I think it’ll be a lot more relatable.”
It’s an idea some in the music industry are jumping on. More and more artists are pairing their NFTs with something a little more traditional for those new to the digital market.
“Those can be redeemed for physical goods,” Laugavitz said. “That redemption quality of it obviously makes it feel more tangible, and ticketing is a really promising application for NFTs. When an NFT unlocks an experience, it really does become a potent application.”
Ultimately, the NFT market is still in its infancy. While there may be plenty of skepticism to match the optimism of those already involved, the sky is truly the limit.