How the NFT Market has Brought Crypto into the Public Eye
2021 was the year of the NFT. Nothing came close to the hype that NFTs and digital assets saw last year – everybody was looking to get involved, from industry-leading investors, high-profile celebrities, and sportspeople all looking to cash in on the next big investment asset class.
But what started the 2021 NFT boom?
That’s exactly what we’re going to be looking at in this post – the events that sparked the revolution, the continued growth of NFTs, and our expectations for the future.
2021 was not the first time that NFTs had seen movements; in 2017, CryptoPunks and CryptoKitties both entered the fray, having a huge impact on the popularity of digital assets. This went hand in hand with the emergence of Ethereum’s unique blockchain style, which featured a smart contract layer that allowed people to accurately and securely monitor, transfer, and verify ownership of the different assets.
However, this doesn’t quite explain why the 2021 boom was such a huge turning point. From our point of view, there was no single reason that January 2021 started such a large transition into digital asset adoption – instead, we think it was a case of multiple different scenarios culminating at the same time, with the fallout effects of each of these combining to create the investment surge.
The right place at the right time…
The first thing that was very likely to have influenced NFT-mania was the astonishing bull run that Bitcoin was on at the time, seeing the cryptocurrency hit 3x all-time highs when compared with 2017. In a pandemic-hit world, investors were looking to invest in a growth industry and crypto, as well as its related sub-industries, fit the bill perfectly.
The final aspect that we deem to have had a direct impact on the surge of NFT popularity was the changes that were happening in regard to the ownership of digital content, particularly music, at that time. Essentially, the way that digital media had existed previously did not place the artists in a strong position, making it impossible for anyone but the stars to make real money from digital releases. However, with NFTs, this is not the case. For more information on how NFTs are revolutionising the music industry, take a look at this post from Rolling Stone about Kings of Leon’s pioneering release last year!
With all of these huge cogs turning at once, we were bound to see an explosion somewhere and thankfully for those looking to in digital assets, that explosion happened in NFTs. Since this pivotal moment, a vast number of collections have seen unprecedented growth, with select pieces selling for tens of millions of dollars on the open markets. The staggering value that NFTs can hold in today’s digital landscape is simply astonishing, presenting life-changing investment opportunities to those who are able to capitalise on the right collections at the right time.
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