There has been a lot of talk about NFT trading lately, but skeptics’ concerns have been overblown. We must not let the critics get us down too much – the future of digital art is bright.
Digital artists are some of the most advanced creative minds in the industry, and their latest innovations are truly impressive. Traditional and digital art are merging and are set to take the art world by storm. (To recap, read our explanation on “What are NFTs?” and watch a quick tutorial on how to create an NFT for free.)
What fascinates me about the digital arts space is its relentless pace of innovation. This constant change is similar to the venture capital industry where I come from. I am also fortunate that through the LIAN Foundation, our non-profit arm of the LIAN Group, we have the privilege of connecting with some of the most forward-thinking digital artists out there.
That’s why I firmly believe that digital art will continue to grow. NFT trading may have slowed down, but innovation in digital art certainly hasn’t.
Over the past few months, we have seen the traditional, physical art world merge with blockchain technology in ways that would excite even the most skeptical collector.
In May, Artrade announced its new “Fragments” of Real World Asset (RWA) tokens, allowing collectors, or actually anyone, to acquire a portion of ownership of a Pablo Picasso sketch (Forbes). I can’t stress enough how exciting this was. It was a first glimpse into how blockchain technology could improve the traditional art market.
And that’s not all. Other recent innovations come from Parker Ito, who in collaboration with Zien gives collectors the opportunity to purchase an NFT that they can then exchange for a physical oil painting (FAD Magazine).
Parker Ito gives collectors the opportunity to buy an NFT that they can then exchange for a physical oil painting
Fiorenzo Manganiello, co-founder and managing partner of the investment firm LIAN Group
The traditional and digital art worlds have officially met, and I am sure they will get to know each other even better over the next few years.
I know there might be some doubters, after all there are still court cases trying to push AI, NFTs and other technologies out of the art world. But there is no doubt that regulations would reassure collectors and investors that they can support the innovations that are emerging in large numbers. I believe these regulations will be introduced as the traditional and digital art worlds become more and more converged.
But honestly, the lack of regulation will not slow down the rapid advancement of these technologies. Regulations will help take digital art and NFT sales to the next level, but even without them, sales will increase.
Sales are helped by the fact that traditional auction houses like Sotheby’s and Christie’s have been promoting digital art since their explosion in 2021. This commitment remains unwavering.
These auction houses have approached digital art as innovatively as the artists behind the works. Sotheby’s Metaverse was launched in 2021 and two years later they expanded the secondary market, demonstrating their unwavering commitment to the potential of digital art. Sotheby’s Metaverse is a fully on-chain secondary market that combines the traditional auction house experience with blockchain technology.
Sotheby’s also continues to generate significant revenue from digital art. They have already held eight digital art auctions this year, the most recent of which was CryptoPUNK and Beeple NFTs: two of the biggest names in the NFT space.
The steady stream of digital art auctions tells us that this type of art is now a mainstay of traditional auction houses. Sales will only increase as more innovative trends capture the imagination of digital and traditional collectors alike. In fact, I believe digital art sales at auction houses could increase tenfold in the next five years as these mergers legitimize digital art to a wider range of investors.
While some question the viability of NFTs, it would be foolish to write off the digital art market. The merging of physical and digital art is just another in a long line of innovations that have kept the industry on its toes. These developments will ensure that digital art continues to thrive and sales soar over the next few years.
Visit the Lian Foundation’s Gallery of new artists for inspiration. And if you are interested, why not download some of the best software for digital art and start your art career.
