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Hi Dan & Gauthier! What are the most significant data related to market growth? Any assets or actors standing out according to your NFT Yearly Report for 2019?
The volume of unique artworks traded on the blockchain is an evidence of the global growth of the Art segment: from 2,000 to 32,000 artworks in 2019. SuperRare is definitely the Art marketplace that drives most of the growth of the Art ecosystem, and is undeniably above the fray. The challengers are also strong, the art segment is fortunate to be supported by very mature actors.
Was there something that surprised you in the analysis results?
We suspected a lack of secondary market in the art segment, the report confirmed to us. It is one of the first times that we observe this reversal of trend in the purchase of NFTs. NFT Artworks are no longer bought for quick speculation, but more as a long-term investment.
You underlined that digital collectibles and NFT art have different trends, what do you foresee for the future of these assets? Right now, platforms like NiftyGetaway and also CryptoKitties invite established artists to create crypto collectibles, do you think such cross projects and collaborations are going to happen more often?
Absolutely. The growth of the NFT industry will be ensured by two main vectors: adoption of the technology by users, AND by creators. The phenomenon we are currently witnessing and which started a few months ago, announces in our opinion a new era of the NFT ecosystem. More and more creators (Collectibles, Art, Gaming, etc.) will be able to use NFTs as an expression Medium. Regarding art and collectibles trends, it is extremely tricky to predict the future of these segments, but everything suggests that Collectibles still have a bright future ahead of them, even if their market share is gradually declining. Art is gradually positioning itself as one of the potential main growth vectors for the entire NFT industry.
In the NFT panorama, crypto art still represents a small slice of the whole market. Can you tell us how the market is divided and why art seems more of a niche asset?
The NFT industry is still largely dominated by Gaming & Collectibles (about half of the ecosystem), Real Estate, Trading Card Games and Domain Names also represent massive use cases and an important part of the space. The golden age of NFT began with Cryptokitties and Decentraland, two Collectible and Real Estate projects, both of which gave birth to other projects exploring the same use cases. From a historical point of view, NFT Art is a recent use case, which still seems reserved for an elite.
You recently got a new investor at NonFungible, Polyient Labs, what are your plans for the year ahead?
We are extremely happy to count Polyient Labs as Key Partner for the continuation of our development! The gold mine of data that we have been collecting for more than two years now only needs to be exploited! Polyient will help us develop the tools and functionality that will allow any NFT project manager to monitor the performance of his project, but also to help players and traders to evolve more serenely in the ecosystem of NFTs, knowing precisely and in real time the exact value of assets.
Do you think the current global crisis or Ethereum's higher gas prices will affect the NFT market?
Yes and no. The NFT ecosystem survived the Global Ethereum Clogging caused by Cryptokitties craze in late 2017, early 2018. The projects that will last and that require heavy interaction have already implemented solutions as a result of the 2017 craze, other projects that fail to innovate will lag behind and fade out as we've already noticed
PS: The 2018-2019 NonFungible Art Report is available HERE