The NFT art market is constantly evolving and constantly producing new trends. This is a sector where many things converge at once, which makes it all the more important to stay up-to-date with the most important innovations. Firstly, you have what the artists are producing with the technology available. There is experimentation to see what kind of artworks NFT art enables, which already is a lot. Also, curators and NFT art gallery owners are doing their best to innovate with exhibitions and bring the traditional experience of museums and galleries into the Web3 paradigm. This is the case of SOPRG, an NFT art gallery based in Prague, Czechia, that curates NFT art through exhibitions in its Somnium Space metaverse gallery operation and allows the artists it represents to gain more visibility.
On the technology side of things, there are new NFT trends and innovations that you don’t want to miss out on as well. Whether that is on actual technologies being more widely available to the public or technological innovations that allow more people to get into NFT art, the tech aspect is not to be underestimated. Finally, there are social trends inside the NFT art market that will have an impact and are worthy of mention.
Environmental and energy-efficient blockchain technologies
One of the biggest news in crypto, blockchain, and —more generally— Web3 in 2022 was the Ethereum Merge. To summarize, the Ethereum Mainnet used an energy-intensive protocol known as Proof-of-Work (PoW) to verify transactions. So Ethereum merged with a separate blockchain called the Beacon Chain which used the Proof-of-Stake (PoS) protocol, to migrate to this protocol. As a result, Ethereum says it has reduced its energy consumption by 99.988% and its carbon emissions by 99.992%. On the same information page, Ethereum states that an ecosystem of Regenerative Finance applications is emerging, in which developers and financiers use Decentralized Finance for projects that yield positive externalities for the environment. And what does this mean for the NFT art market? A sector that is usually eco-conscious will no longer face such a fierce dilemma between producing innovative work that comments on climate as that work produces harm to the environment.
Blockchains like Algorand and Avalance consume 0.0000006% and 0.00005% of what Bitcoin consumes per transaction respectively. But it’s not only about energy consumption. It is also about how that energy is generated. More and more blockchains will move to renewable energies like solar. Less energy consumed and renewable energies mean that purchasing is cheaper due to a drastic reduction in transaction fees. This will surely benefit the NFT art sector.
Institutions and museums can auction NFT art for charity
Once you eliminate the possibility of being such a burden on the environment, you can have charitable NFT art auctions and support cultural heritage institutions. For example, when SOPRG partnered with the Czech National Theatre to auction the NFT of an image of Nikola Márová as captured by the photographer Pavel Hejný, in the role of Odette in the famous play Swan Lake. And so, having removed such a negative externality like massive energy consumption and carbon emissions will open up the space for traditional institutions and governments that would like to dip their toes in the blockchain sector to protect an interest or to advance it.
A more inclusive NFT art market
Inclusivity and equity are trends currently shaping many sectors and industries, and NFT art was not going to be the exception. The tech sector has been predominantly men-dominated, with the NFT art scene exhibiting these patterns. However, artists making a name for themselves like Krista Kim, Blake Kathryn, or Maliha Abidi show that this is changing.
Also, you have increasingly diversified centers for people to purchase art. Kristel Bechara is a Lebanese artist based in UAE, for example, who has already made a name in the non-fungible token space. And so you have the possibility of disrupting the classic art centers of the world, as well as the typical tech hubs.
Expansion of the NFT art market into new territories
Each country has its own set of singularities that push adoption. Some countries favor Ethereum as a primary blockchain. In other countries, blockchains like Polkadot, Avalanche, or Algorand have found a big fanbase. And so, the interoperability of NFT marketplaces can push artists to sell their digital artwork to people from different latitudes.
When such interoperability at scale occurs, as people favor one or another blockchain due to the specific ecosystem for developing apps or other preferences one might have, one can expect the Web3 artistic market to flourish internationally and for there to be a more dynamic space.
More NFT art collaborations between artists and other institutions
To create a product that people can grasp in some manner, at least mentally, you need an artist to create something visual that people can point to and understand that it represents a perk or the ability to access a brand experience. Brands and businesses will surely want to be part of the newly emerging Web3 and look to form partnerships with digital artists that help them create and represent their service. Perhaps something that is not as utilitarian or commodified. Non-Fungible.
With all these trends taking hold of the NFT art market, it will experience more sustained, moderate growth. So, keep your eye out for these trends and see if you can take advantage of them.
Painting by Mrs. Slunéčková – you can buy the NFTs via our shop.