2022 Art Market Trends (Yes, NFTs) 🎨
The US is on track to dominate, NFTs go to the moon
Cultured is a newsletter by Otis that gets readers up to speed on the most interesting things going on at the intersection of finance, art, collectibles, NFTs, and more.
🗞 STORIES OF THE DAY
Experts weigh in on what the art market will look like in 2022
The biggest trend is (obviously) a growing interest in NFTs. More importantly, as the technology moves into the mainstream, galleries are experimenting with new, digital methods of exhibiting works.
The U.S. market is likely to dominate art sales, due to its quick economic recovery from the pandemic. The States accounted for more than half of auction sales last year, up almost 10% from 2020.
Collaboration, a perennial buzzword in the art world, is likely to become critical for galleries looking to grow. Advisors are particularly interested in attempts to democratize the market.
Our Take: While some traditional financial indicators are indicating a rocky year ahead, the art market shows no signs of slowing down.
Between an impending interest rate hike and rising inflation, many economists are predicting that 2022 will be a rough year for financial markets. However, that doesn’t seem to be affecting the art market, especially in the U.S. The art world’s move online will also help it weather the impacts of Omicron, as well as future Covid waves.
As the metaverse catches on, NFTs are finding their purpose
NFTs were all the rage in 2021, leading some to call the technology a fad. However, as the metaverse grows this year, NFTs will likely become a critical part of the new ecosystem.
GameFi protocols have revived interest in blockchain gaming, which relies on NFTs for in-game trading. Blockchain gaming companies have raised billions to fund these goals.
While NFTs spent most of 2021 confined to the world of art, it’s clear that their uses will expand to gaming and beyond this year.
Our Take: As the hype wears down, the value of NFTs appears to be in the underlying technology.
The runaway NFT market of 2021 distracted from the core of the technology: its ability to offer proof of ownership in the digital world. In-game purchases are a perfect example of NFTs’ utility: they provide a way to track digital items that would otherwise have no unique identifiers. This year will see several major metaverse developments and it’s all but assured that NFTs will be a critical part of that.
✨ AROUND THE INTERNET
After Tom Brady won a game against the Atlanta Falcons last January, he signed his game-day uniform and added a note: “G.O.A.T.” Now that jersey is up for auction and is expected to fetch $1 million.
Logan Paul’s $3.5 million Pokémon set may be fake. Enthusiasts have pointed out numerous inconsistencies in the set, which may indicate that the influencer was duped (it wouldn’t be the first time).
Eminem has joined the Bored Ape Yacht Club, paying almost $500,000 for one of the Apes.
A near-mint copy of the first Incredible Hulk comic has sold for a record $490,000. High-quality issues are incredibly rare, due to the cheap paper and ink used in production, which causes smudging.
Auction houses have some things they refuse to touch. One of them is Jeffrey Epstein and Ghislaine Maxwell’s “Little Black Book” of contacts.
Saying goodbye to a real one: Microsoft is sunsetting classic Halo game servers on Xbox 360 this month. It’s the end of an era for the iconic game.
Goodnight, sweet sweet low-quality prince.
