39% of art buyers think that this market is speculative and 1 in 2 do not see artistic value in a non fungible token.
It seemed that they were going to mark a before and after in the art market, but the interest in the so-called Non Fungible Tokens (NFT) seems to be deflating.
Their investment value has fallen, as has the number of buyers confident in their potential. In 2022 it was 82% and now the percentage is down to 66%, according to the Hiscox Online Art Report 2023, which fears their demise.
Last year the NFT market suffered a contraction of more than 90% due to the collapse of some cryptocurrencies. This leads to the loss of allies. Currently, only 12% of buyers intend to purchase an NFT. Compared to last year, that’s fifteen percentage points less.
“In the last twelve months we have seen how the NFT market has been dwindling, mainly because of the increased caution of investors towards the behaviour of cryptocurrencies from the collapse of some such as FTX,” confirms Eva Peribáñez, director of the Art and Private Clients division of Hiscox Spain.
Thirty-six percent of people who own works of this type say they intend to sell part of their collection. Twenty-eight percent would like to exhibit them in the metaverse. And a third of those surveyed do not know what to do with them.
Fewer than half are determined to keep their NFTs for personal enjoyment. Thirty-nine percent of art buyers believe that this market is merely a speculative bubble, and one in two do not see artistic value in an NFT. Moreover, three-fifths prefer physical art and show no interest in the new format.
To buy an NFT, 37% call for more regulation, 29% need the buying and selling process to be more like eCommerce and 28% would be convinced if it were signed by a traditional artist.