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In the letter
- The NFT sector has seen strong growth in recent months, but the CEO of Terra Virtua says we should remain cautious.
- The subjective nature of an NFT’s value means we should moderate expectations, he said.
- He also suggested that the only path to sustained growth is traditional NFT adoption.
The Non-Fungible Token Market (NFT), where art, games and other collectibles are bought and sold growing quickly. Yet Gary Bracey, CEO of Terra Virtua, said today that we should take a cautious approach to this explosion of interest.
The NFT sector has shown great signs of growth in recent months. According to site data Not fungible, the first two NFT markets:CryptoKitties is Decentraland– It saw total sales reach $ 38 million and $ 37 million, respectively. But despite the sudden growth, the CEO of Terra Virtua suggests we moderate our expectations.
“While everyone in this industry appreciates the growth seen in the NFT industry, it should be embraced with a little caution,” said Gary Bracey, CEO of Terra Virtua. Decrypt.
For Bracey, we should be cautious because “art is very subjective and one person’s Michaelangelo is another person’s Mickey Mouse”.
The NFT industry explained
NFTs are a unique subsection of the cryptocurrency industry.
In simple terms, NFTs are crypto-collectibles that are different from typical cryptocurrencies, to the extent that they are all individually unique (or non-fungible). They are valuable in the same way that real-world collectibles, such as the Mona Lisa painting, gain value because they are rare and unique.
But it’s not just the biggest platforms that are seeing the most growth. SuperRare, a digital graphics platform, reported Groundbreaking results yesterday, as they revealed that $ 4 million worth of artwork was sold in October alone. Additionally, artists earned over $ 3 million in October after selling over 10,000 works of art, another unprecedented figure.
Second Dune Analytics, a website that tracks data for the Ethereum community, the NFT sector was a huge success in September 2020, where the total monthly volume of NFT sales increased and surpassed $ 6.2 million. A month later, in October, the NFT sector contracted to $ 3.9 million.
“In our current NFT ‘bubble’, there is a lot of activity but delivered to a handful of market leaders in a relatively small industry,” Bracey said, adding that “the race hasn’t started yet, this is just warming. ”
Despite the promises shown by some NFT platforms, advancing the industry as a whole may require further mainstream adoption.
“Maybe we are already at the saturation point with NFT buyers and so the only real path to significant growth is through the mainstream,” Bracey said, adding that “we also need to educate the masses about the benefits of blockchain and NFT and also produce content, works of art in particular, that support a perceived value proposition “.
Regardless of the rest of the industry, CryptoKitties is still going strong. Everyone seems to love cats, be they real or digital.
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