The Year of NFT JPEGs: How NFTs skyrocketed in Summer 2021

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The last ten years have been characterized as the decade of real jokes, and the story of NFTs is no exception. Imagine telling someone in 2011 that a bidder would be willing to pay $69 million for a JPEG that was being auctioned off at Christie’s, the world’s most prestigious art auction house. Even now, it’s difficult to believe.

Summer 2021

The JPEG reigned dominant in summer 2021, pushed to prominence by the rise of the NFT (non-fungible token). The art world and Silicon Valley finally found a shared interest in new media and crypto, propelling blockchain and NFTs into the mainstream.

NFTs were seen as a financial asset by techies, crypto enthusiasts, art collectors, and celebrities alike. At the same time, the pandemic prompted more individuals to stay at home and spend and display their income on the internet. The astonishing $24.9 billion in NFT sales for 2021, compared to only $94.9 million the year before, could be attributed to talking about Web3 and the metaverse.

If you think NFTs are a fad, there are a dozen evangelists who will convince you differently. Even the $69 million Beeple NFT buyers have since linked their purchase to an anti-racist statement praising crypto’s equalizing power. The statement also asked for the burgeoning global south’s purchasing power to be recognized, fueling interest in the project and raising the prominence of NFTs and crypto in general.

What has NFT brought to the crypto world?

NFTs have existed for far longer than 2021, even though many people are unaware of this. In 2014, at the Seven-on-Seven conference at the New Museum in New York City, the first NFT was born. The first “monetized visuals” bought and traded on the blockchain resulted from a 24-hour partnership between art and technology.

For a good reason, crypto investors are flocking to the NFT (non-fungible token) arena; with seasoned NFTs increasing by 50,000 percent in less than two years, it would be insane to ignore them. However, they are still widely misunderstood and frequently mislabeled as JPEGs.

Simply said, NFTs are digital assets with distinct attributes. They can range from virtual commodities such as CryptoPunks to real-world assets such as real estate. Art, souvenirs, memorabilia, and sports cards are just a few examples of NFT digital assets. The term “non-fungible” alludes to the fact that each item is unique and irreplaceable.

NFTs in 2022

Though many in the crypto community have already accepted NFTs, legitimizing them as a form of art or collectible with value is the best approach to encourage those outside the industry to recognize their significance. With so much enthusiasm and creativity driving widespread improvements, the interest in NFTs appears to be more than likely to survive the JPEG summer of 2021. Whether you choose to participate or not, interest in NFTs and their uses will continue to spread across industries in 2022.