Cathie Wood-led Ark Invest noted that the growth of non-fungible tokens, or NFTs, remains strong despite a price crash from the heydays when Beeple sold an artwork for $69 million.
What Happened: Ark, which runs funds like the Ark Innovation ETF ARKK and the ARK Space Exploration & Innovation ETF ARKX, made the observations in a newsletter on Monday.
The investment management firm's analyst Frank Downing, citing Messari data, noted that NFT marketplace OpenSea’s volumes hit $150 million in June, which beat its previous record of $148 million — hit in March.
Downing pointed to game marketplace Axie Infinity AXS/USD, which he said is breaking records having hosted more than $170 million in June.
The rise of CryptoPunks, a collection of 10,000 unique pixel art renderings which represent digital personae also did not escape Ark.
“Even Jay-Z has designated a CryptoPunk as his profile picture on Twitter ahead of a Sotheby's auction of an NFT based on his debut album Reasonable Doubt,” wrote Ark.
Why It Matters: NFTs can not only disrupt the digital art scene but also property rights and supply chains, as per Ark.
The Wood-led company pointed to TechCrunch selling property as an example of such an upcoming disruption.
“It appears that NFTs are in the early days of challenging intellectual and other property laws,” noted Ark.
Axie co-founder Jeffrey Jiho Zirlin said earlier in the month on Twitter that the project's NFT marketplace was a driver of revenues.
The AXS token associated with Axie has been surging lately. At press time, AXS traded 0.09% lower at $18. Over the week AXS has shot up nearly 87%.
Ethereum ETH/USD, a cryptocurrency that often underpins NFT sales, slumped 5.33% over 24 hours to $2,026.03. For the week, it is down 8.67%.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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