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How Does Crypto Market Downturn Correlate With NFT Sales?
NFT artists might be in a favorable position regardless of the market situation.
GM! It's the final month of the year and the holiday season is on its way! Yet we are still here to provide you with the latest news from the NFT photography space!
Here's what we got this week:
Blurring Reality With Frontier Web3 Photographer Cath Simard
Rare Jimi Hendrix Photographs Released As NFTs
Correlation Between The Value of Crypto And NFT Sales Volume
Blurring Reality With Frontier Web3 Photographer Cath Simard
In Web3, anything is possible.
The people seeking artistic empowerment through blockchain may have the finest understanding of this.
Web3 offers creatives new and fascinating ways to push boundaries and get beyond the bureaucracy of the conventional art industry, like the multi-talented photographer Cath Simard.
This time we're back again to share an interview by NFT Now where the forward-thinking photographer breaks down her creative process.
Rare Jimi Hendrix Photographs Released As NFTs
Before the release of his second album "Axis: Bold As Love," in 1967, Jimi Hendrix, while at the height of his career - entered the London studio of American photographer Donald Silverstein.
What took place was a strong connection between the artist and the photographer, which led to the most endearing and at-ease photographs ever taken of one of the most influential musicians in history.
An illustration of Hendrix and Silverstein touching foreheads emphasizes their creative bond.
A selection of unseen images was released in 3 drops with one of them being listed on OpenSea.
Correlation Between The Value of Crypto And NFT Sales Volume
As an NFT photography community, we always keep an eye on the market activity.
According to data from a February Nansen report, the price of NFTs has an inverse relationship with the value of cryptocurrencies when expressed in ETH.
In other words, the cost of NFTs will likely increase when the price of ETH declines.
SuperRare - the exclusive NFT art marketplace - conducted an analysis to understand if there's a correlation between the value of crypto and NFT sales volume.
Courtesy of SuperRare
Data reveals a connection between the amount of SuperRare sold and the price of ETH. SuperRare was introduced in the midst of the weak market in 2018, however, from 2019 to 2021, the value and sales of both ETH and NFTs surged.
However, there isn’t as much historical data available on how they behave across entire crypto market cycles because SuperRare is still a relatively new platform.
Our take:
Given that NFTs offer a great strategy to spread your risk during a market downturn, it is logical to expect that their prices will increase.
On top of that, collectors have a chance to rack up the most desirable NFTs. This type of demand makes the prices go up even when the market is down.
With that being said, the state of crypto markets shouldn't affect your NFT drop strategy. If anything, a decline in crypto might even help you sell your art faster.
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Top weekly headlines curated by the Focus Market Community.
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