Especially on Rarible. Which seems to be a one way road at the time for many artists. Like christians thrown into the arena, the cryptoartist of today has to battle it out amongst hundreds of others to make it. One could even argue that is a healthy and realistic dynamic of the market, but is it?
Let’s go a bit deeper. While the NFT sales are conquering record after record the profits seem to be distributed quite unevenly, with 20% of the cryptoartists earning 80% of the revenue, and the rest 80% earning 20% of the profits. Following the Pareto principle perfectly.
But how did we arrive here after a brief flash of bull market?
It has been a mixture of factors, the crazy amounts of liquidity that appeared on Rarible marketplace seem to have been driven by $rari farming.
There was a small artist base and sudden demand outperformed the supply so the secondary market sprouted. Which had a snowball-like effect where higher secondary drove crazy primary sales and vice versa.
These 2 are very interconnected and in quantum sync with each other. A phenomenon that gave the illusion of great success in many artists, only to see sales dwindling shortly after.
Another consequence/side effect is that the user base is collectively becoming smarter and smarter with their spending, opt-ing to go for liquid markets with regulated supply and drops.
So initially the market was immature with fewer artists and then $rari mania arrived and drove the liquidity in hyperdrive, people were buying random shit, a different influencer was jumping on board each week, it all gave the false feeling of a crazy long-lasting bull market, but (as usual in cryptoland) it all turned out to be a rug.
The most common reply is ‘’it’s not you, or your art. It’s the market that is down, it’s the same for everybody”.
But is the market wrong? Or will the market change its mind? Or were these sales real in the first place or just a lucky strike? There seems to be a big lack of interest in art if it is not minted on specific platforms.
Collector numbers are going up so there is no lack of new collectors as some are stating. We are all eager to watch how the bottom part of the cryptoart will evolve this year and where new trends will take us.