The popularity of the cryptocurrency space continues to be prevalent these days, considering that space is not only an investment ground but is also host to so many other affiliations like NFTs. In a new social media tweet from Ethereum-themed art application CryptoPunks, a punk was sold for about 80 ETH, approximately about $135,000 in today’s prices.
The factor behind the overpriced sale only details the popularity and growth of the non-fungible token (NFT) space, which has continued to boom in the last 12months. For the uninitiated, NFTs are digital graphic representations of items found on Blockchain.
Punks are generating so much money for the small NFT sector
The growth of the punk market is no surprise, as the earlier demands of the punks have paved the way for the market. CryptoPunk, in their analysis, is unable to ascertain why the demand for these punks is on a high. Pranksy NFT, one of the most famous art collectors, is currently bidding about half a million dollars for a punk called #4254, a sale that will be high if completed.
The punks have continued to amass interest from the public as several of them are on the pipeline of many wealthy individuals, according to CryptoPunks. Several punks are also going for high amounts of money, like Punk#2890, which is currently a bid over $800,000. In the analysis by CryptoPunks detailing how much these punks are going for, the lowest sale of any punk in history is about $20,000.
The sustainability of punk sales is also called into question, considering that the NFT sector is just a little portion of the cryptocurrency market. The hype behind NFTs had seemed to have increased beyond that of previous years when they generated $50 million in 2019 and about $250 million the whole of last year.
NFTs has faced their share of criticism
This year’s increased hype of the NFT market has amounted to about $150 million generated barely two months into this year. The market has faced several criticisms recently, as many individuals believe that the arts do not require effort or any form of investment, despite its yield. Famous crypto analyst Piers Kick, who is also the head of research at Delphi, believes that the value placed on NFTs is overhyped, considering that the market is new.
Kicks feel like the price of these punks, which continue to gain attention and sell at a very high value, is discouraging to new incomers into the cryptocurrency space. Kicks feel that the punks are just exploiting the digital heritage of many blockchain networks like Ethereum. Kicks believe that many people do not know this history and do not care about their existence. He’s skeptical about the market’s sustainability, considering that it does not have any innovative product offering.