NFT sales have so far hit around $3.5B in the first three quarters of this year, according to the Hiscox Online Art Trade Report 2021, produced in partnership with ArtTactic. The report found that total online art sales reached $6.8B in the first half of 2021—and could hit $13.5B by the end of this year.
The NFT market saw a surge in late summer—in August, the report estimates $1.8B in NFT sales which makes the previous high, in March when Beeple’s Everydays—The First 5000 Days sold for $356M—pale in significance. But this is a hugely volatile market. In September, NFT sales dropped by 69%.
Hiscox and ArtTactic identify a discernible shift in buying focus—the first NFT boom earlier this year tended to be focused on works by single artists (Beeple) but now the appetite is for “code-generated art” by collectives such as such as Crypto Punks and Bored Apes Yacht Club (BAYC). “Although the art itself might be perceived by critics as trivial, the combination of uniqueness, ownership, gamification, and storytelling is fueling sales and speculation among a new generation of collectors and investors,” the report says. It adds: “Art and NFTs are here to stay”.
The swift adoption of NFTs by the big traditional auction houses (Christie’s, Sotheby’s, and Phillips) has been mutually beneficial. Indeed, four of the top ten NFT prices to date have been achieved through these traditional auction houses, showing that even in this most progressive of markets, old-school credibility still counts for a lot.
Online art platforms are also piling in: 14% said they already offer NFTs through their site, with another 38% planning to do so soon. Artnet and 1stdibs both announced in August the launch of proprietary NFT platforms—1stdibs’s is based on an auction model, with semi-monthly sales of NFTs.
What have quickly sprung up this year are physical NFT galleries, dedicated to crypto art. But, the report cautions, “as more traditional galleries move into NFTs, it is questionable whether more physical NFT galleries will open, or whether the NFT and traditional art world will gradually merge.”
