The state of the Web3 creative economy: NFT art market size and sales | SOPRG

The NFT art market has been mutable since its inception. This side of the Web3 economy is not the same as it was a year ago when it was no its peak of valuation. The NFT market size has taken a big hit. NFT art sales have slumped significantly. It doesn’t take a lot of insight or insider information to say that the space is on a dip. Still, the industry has a projected growth of double-digit yearly rates for the remainder of the decade. Why would that be the case?

To understand the value of the NFT market, we should look first at the promise of Web3 —the new iteration of the Internet—. Web3 is a paradigm of the Internet where users, aside from being able to have a more interactive experience, have a way to own assets online. These assets can come in many forms, like a means of exchange (i.e., a cryptocurrency). But they can serve some purposes. NFTs are the most common type of digital asset that is not a cryptocurrency. NFTs can be artworks, clothing, real estate, or different items; you name it. The metaverse —a virtual, permanent world coming to fruition in the context of Web3— needs to be populated with assets, and artists will be required to create these assets. Web3 gaming is also a cornerstone of the new Internet that looks to create worlds and populate them with all sorts of digital assets for gamers to collect or use. In this context, NFT artists will surely find a space where their skills are valuable.

In short, the NFT art market size —as the estimates say— will grow because it has a solid foundation from which to do so. Perhaps the way it will do so will change slightly and not rely on speculative NFT trading to achieve the projected growth. The NFT space stepping away from speculation is great news. Inherent value has to drive NFT art sales. If it does, there will be healthier NFT space.

Right now, it might be somewhat contrarian to affirm that the NFT market size has a lot of growth potential as everyone seems to worry about “crypto winter”. But, the blockchain analytics platform, Nansen, wrote (on September 2022) that the NFT market size was more than $11 billion. The platform, quoting from a Verified Market Research report, noted that the driver for growth was NFT collectibles. And as these types of NFTs have lost value, they are likely behind the drop that NFTs are experiencing. After all, collectibles have been traditionally the most hyped, speculative element of NFTs. The reason for having optimism in the space is that speculation is being removed while still having a considerable valuation.

SuperRare is another organization that is optimistic about the NFT art market prospects. Quoting the latest Art + Tech Report on collectors, they write about how most NFT art collectors are not motivated by return on investments. Instead, it’s about buying art that is “for the sake of art” and supporting artists. So, this is a more sustainable NFT segment. One in which people collect an asset that is perceived to have an inherent value, although it may be subjective.

Diversifying a portfolio or getting a return on investment is unimportant to an NFT art collector. Instead, people look for art they like, a community with which they can interact and share artistic viewpoints, curation, and ownership of the artwork. A concern that is unaddressed at the moment is the ability to display the artwork. According to the Art + Tech Report, all of these needs are far more important than getting returns. Only 28% of respondents considered the potential to make a profit a part of their reasoning for buying NFT art.

For all the reasons outlined above, to buy NFT art is different from buying other types of NFTs. This is why there’s reason to be optimistic that NFT art sales will start to grow again.

Where to look for NFT art

One of the things that people want from the NFT art market is curation. This is the role of an NFT art gallery. So those who are into NFT art collecting should start looking in the places where art is displayed and bought. That is an art gallery. Given how central art is to NFTs, and how NFTs are becoming more central to art, it is no surprise that traditional industry names like Sotheby’s or Christie’s have their own Web3 operation.

You even have Web3 native initiatives that curate art already, like Art Blocks. These are examples of sturdy NFT art projects that can provide something with inherent value.

SOPRG art gallery is located in Prague, Czechia, and is the ideal way for you to get those needs of art, community, and curation served. You can find some artwork by up-and-coming Czech artists and meet fellow NFT art collectors on their Somnium Space metaverse parcel.

Indeed, an NFT art gallery is one of the businesses that make sense in Web3. These types of businesses will surely make a solid contribution to expanding the NFT market size and provide a more solid footing for the NFT art sector. When you remove the speculation, you can create a more sustainable NFT art market. You also have more space for all the things art is meant to be. Even fun.