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Digital art NFTs are the next big thing as major players in the crypto community which is going beyond what should be the case of the physical art market. In a tweet from Messari analyst Mason Nystrom on September 21’ st it was implied that the sales of non-fungible token or NFT as is popularly known, $5 million was passed in September by marketplace Rarible with a volume of 5,3089 of its governance tokens called RARI being traded. Apart from this the SuperRARE NFT marketplace also has shown visibly great signs of growth this year as per Nystrom.
Amidst everything that has been happening, this particular activity has truly caught the attention of investors who are eyeing good and market potential NFTs. These NFTs they are targeting can be used to give the token holders the right to own digital art, collectible trading cards and much more. Anthony Pompliano and Jason Williams, co-founders of Morgan Creek have also reported to make a huge bet as they have collaborated with a number of digital artists. Pompliano said in one of the newsletters:
“Similar to how Bitcoin is superior to gold in almost every way, digital art is superior to traditional art in almost every way also. This transition to a digital art world is not a question of if it will happen, but rather when. I personally believe that the digital art market cap will grow to become larger than the physical art market cap.”
The executive from Morgan Creek also stated that the traditional art market had a market capitalization of roughly $65 billion for the last few years which also outperformed S&P 500 by over 180%. Pompliano also said that he was confident there could be an increase in a 6000x increase in the digital art market cap. The digital art market cap is estimated to be less than $10 million at the present times.
$100,000 is the record sale value of a digital art piece on the NFT marketplace Async Art also supports Pompliano’s affirmation and contention. This assertion has been reestablished when there was an undisclosed investment from a crypto investment firm called CoinFund into Rarible on 8th September. Earlier Rarible predicted that the entire NFT sector will see a humongous growth of more than 50% in terms of market capitalization. And if this growth is achieved then the benchmark market capitalization of $315 million by the end of this year or beginning of 2021.
Darren Kleine went on the records to say:
“Given the ease of buying and selling digital NFTs and the popular appeal, it’s only a matter of time before the digital art realm surpasses that of the physical.”
The NFT’s in the field of digital art is a new thing, but it has been picking up in terms of market potential. In the future if it continues this way, it is likely to capture attention from major players who are looking at major areas to invest.