NFT sales are recovering in the art market

MADRID, March 25 (EUROPA PRESS) –

Data from the final months of 2023 and early 2024 have revealed a “second chance” for non-fungible tokens (NFTs) in the art market, largely due to the recovery of cryptocurrencies such as Bitcoin in the stock market, which ended at 30 in 2023 % grew 157%.

In fact, according to data from data platform CryptoSlam, NFT sales volume increased by 32.8% in February 2024 alone, representing consecutive weeks of growth year-to-date.

However, apart from these data that demonstrate the revival of the market for this type of online art after the rise and fall of recent years, it must be overlooked that the market for this type of online art after the rise and fall of recent years has declined significantly.”

Hiscox, an international company specializing in art and high net worth insurance, has highlighted some of the biggest challenges facing the online art and NFT market, as revealed in its Online Art Report 2023: Cybersecurity, Sustainability and Consumer Confidence. Buyers in the online art market.

According to this study, 71% of online art buyers are concerned about cybercrime. Between July 2021 and July 2022, more than $100 million worth of NFTs were stolen, an average of about $300,000 per scam.

Likewise, other data is revealed, such as that 27% of online art buyers have avoided purchasing works above a certain amount due to fear of cybercrime, compared to 31% in 2022.

In this sense, the aspect that worries them the most, which 56% of these buyers mention, is the theft of their credit card or financial data through the interception of a payment or an invoice.

When asked why they would buy NFTs, 29% said they would buy if the buying and selling process was more similar to that of more traditional e-commerce, and another 28% of art buyers would buy if traditional artists would produce works. in this format.

Art buyers value trust above all, and in this sense, some of them choose not to buy over the Internet because they fear that the work will look different in real life than on the Internet (70%), and that they not being able to view the piece before purchasing it (66%) and the trust and reputation of the seller (63%).