NFT Digital Art is Back, But Not in the Way You Think

NFT Digital Art is Back, But Not in the Way You Think
Source - Sotheby's

There's been a lot of chatter lately about whether NFTs are making a comeback. My answer? YES—but not in the way you might expect. People are no longer buying NFTs solely with the hope that their prices will "go to the moon."

Recent data points suggest a shift towards purchasing NFTs for the purpose of collecting them. I believe there are two reasons for this change. First, there's a strong sense of community around NFTs, with people wanting to support the ecosystem. Second, we're witnessing a shift in incentives—from quick money gains to genuine collecting.

Take Sotheby's Digital Art Day Sale in August 2024, for example, which saw 1,165 unique bids. (See more interesting stats below.)

Additionally, NFT18's report shows that the average holding duration of NFTs is increasing over time, indicating that the market is attracting more collectors.

Source - NFT18

In conclusion, this is an interesting transition to observe as the market evolves and matures.