Yet non-fungible tokens (NFTs), which became synonymous with digital art during a hype-driven, celebrity-endorsed asset bubble in 2021, have seen massive drop-offs in terms of both market cap and cultural relevance. This is due to multiple factors, including downturns in the cryptocurrency marketplace, and a series of scams and sell-offs that tarnished the industry’s reputation.
So what is the current situation with NFTs? Are they dead and gone forever? Or have they simply evolved into a smaller, more mature ecosystem?
Eli Scheinman, curator of Zero 10, believes that the 2021-22 NFT cycle was driven by speculation and composed of participants entering primarily via the cryptocurrency, technology and collectibles markets – and was therefore less about digital art than we were originally led to believe.
“In many ways, it was an accident that these individuals found themselves suddenly collecting digital art,” Scheinman explains. “The interesting dynamic is that a small portion of those participants – who had no prior background as collectors or patrons – ended up becoming critical supporters of the contemporary artists utilising digital technologies in their practices. But at the same time, the vast majority were simply there to speculate and never truly explored the conceptual depth, ideas and practices of these artists.
“The market correction after 2022 was, in my view, extraordinarily healthy for the long-term sustainability and foundation of a digital art market,” he notes.
