The crypto space is abuzz with news of six-figure prices being paid for both Bitcoin Rock Ordinals (BRO) and EtherRock NFTs as the non-fungible token (NFT) market continues to heat up. The returns to these eye-popping figures – up to 500% for some in a single day- have only stoked further interest in the burgeoning NFT space and ushered in the potential return of NFT mania.
The first six-figure sale occurred on April 12th when a BRO was sold on nft marketplace Rarible for 101 ETH (approximately $203,000 USD at the time of the sale). This was followed the next day by an EtherRock NFT being sold for 600 ETH (nearly $800,000 USD), making it the largest single NFT sale to date.
NFTs are digital collectibles which are typically associated with art, music, and gaming and differ from regular cryptocurrencies in that they are not interchangeable like their counterparts. In turn, the limited-edition nature of NFTs can lend to their substantial value.
The surge in NFT transactions follows the recent collections of crypto art by the likes of Kikimora and Vignesh Sundaresan, as well as Ethereum-based collectibles games like Axie Infinity and Neon District catching fire.
The influx of high profile figures from the music and tech industry into the NFT market was another factor in its rapid growth: hacking giant John McAfee recently entered the NFT space, while rapper Steve Aoki capitalized on the craze by minting an AOKI-branded token.
The speed and fervor with which the NFT market has recovered from the price slump of early 2021 has, in turn, created an environment of excitement and optimism within the crypto space. Moreover, it has underscored the potential of the NFT market to significantly transform the space it occupies, from the art market to the gaming and music industries.
The surge in buying has also attracted the attention of institutional investors and larger companies, a sign that NFTs have reached a new level of adoption and acceptance in mainstream markets. While there are some valid concerns surrounding liquidity, collectibility, and storage of these digital artworks, many investors consider NFTs a sound investment due to their permanent and immutable nature, as well as their potential to skyrocket in value.
As the NFT market continues to mature, it is likely to propel further innovation and increased access to these digital items. This could spur further growth of the NFT market and potentially bring about more adoption in the mainstream.