On the evening of March 11, Christie's, the world-renowned art auction house, held its first-ever auction for a purely digital artwork presented as an NFT—Beeple's Everydays: The First 5000 Days. The hammer fell at a staggering $69.3 million, setting a new record for the highest auction price of an NFT artwork. Overnight, Beeple, a previously obscure artist, became the third-highest-selling living artist, trailing only Jeff Koons and David Hockney.
Many artists admit that Beeple's background is unremarkable compared to traditional creators—no elite education, no prior fame. Yet, his digital artwork, which exists solely in the virtual realm and can be freely downloaded by anyone, sold for nearly $70 million. This event sent shockwaves through the art world and beyond.
Like a pebble dropped into a calm lake, this NFT auction stirred global attention. Media outlets rushed to cover the story, NFT exhibitions proliferated, and discussions about NFTs surged. Though the term "NFT" was coined in the crypto sphere as early as 2017, it exploded into mainstream consciousness in 2021 in an entirely unexpected way.
1. What Is an NFT?
To understand NFTs, we must first examine token standards in blockchain technology. Ethereum, for instance, allows the creation of tokens, which fall into two categories:
- Fungible Tokens (FT, ERC-20): Interchangeable and divisible (e.g., cryptocurrencies like ETH).
- Non-Fungible Tokens (NFT, ERC-721): Unique, indivisible, and non-interchangeable (e.g., digital art, collectibles).
Table 1: Token Standards Comparison
| Feature | Fungible Token (FT) | Non-Fungible Token (NFT) |
|------------------|----------------------|--------------------------|
| Interchangeable | Yes | No |
| Divisible | Yes | No |
| Use Cases | Cryptocurrencies | Art, collectibles, etc. |
Source: OKX Research
Though NFTs seem novel to outsiders, they debuted in 2017 with CryptoKitties, a game where each virtual cat was unique, causing Ethereum network congestion due to its popularity.
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Key Insight:
NFTs distinguish themselves through non-standardization—each token is one-of-a-kind, akin to bespoke luxury goods, making them ideal for art, domain names, and rare collectibles.
2. Who Fueled the NFT Boom?
The NFT market exploded in early 2021, with platforms like NBA Top Shot, OpenSea, and CryptoPunks seeing exponential growth in users and trading volume. While skeptics dismiss NFTs as speculative hype, their rise is rooted in deeper trends:
A. Digital Ownership Reinvented
Pre-NFT, digital art lacked provable scarcity. NFTs solve this by:
- Providing irrefutable copyright proof on blockchain.
- Enabling secure, transparent transactions (e.g., resale royalties for artists).
B. Crypto Community’s Cultural Shift
NFT buyers like Metakovan (who purchased Beeple’s artwork) and Tron’s Justin Sun are crypto insiders. Their support stems from:
- Demand for Legitimacy: Crypto elites seek societal recognition beyond financial success.
- Speculative Opportunities: Some leverage NFTs to inflate asset values (e.g., Metakovan’s B.20 art fund).
Controversy:
Beeple’s decision to cash out his ETH earnings drew backlash, highlighting tensions between NFT purists and traditional artists.
FAQ
Q: Can NFTs be copied?
A: Yes—but ownership is blockchain-verified. Copies lack the original’s provenance.
Q: Are NFTs only for art?
A: No! They’re used in gaming, real estate, and even identity verification.
Q: Why do NFTs cost millions?
A: Scarcity, celebrity endorsements, and speculative trading drive prices.
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Disclaimer: NFT trading carries risks. This content is not financial advice. OKX Research provides informational insights only.
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