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December 23rd, 2021

Which NFT Has Gained Attention of Millennials?

Crypto gives them the freedom to shop from anywhere in the world..

The COVID-19 pandemic that has been raging in the world for more than a year has significantly reduced the ability of the consumers to spend their disposable income. As the consumers are reducing their expenditure on dining out, traveling, adventures, and other such in-person experiences, some of them have taken to other interesting hobbies that fill up that entertainment void they have been feeling. Thus, the market for different collectibles, right from digital arts to fancy cars, has widened. 

This change noted since the last year has led to an exponential growth in the arena of digital collectibles that are minted as non-fungible tokens, or NFTs. And what is the NFT to have gained the maximum attention of the millennials? Painting and other such arts! The tech-savvy and young buyers have been an immense help in saving the art market at the time of the pandemic. Thirty percent of the millennial collectors with high net-worth have spent at least one million dollars last year, as opposed to seventeen percent of boomer collectors. 

Millennials Run the Art Show With NFTs

Way before the pandemic started looming large, high net-worth millennials were keener to purchase online art than any other generation. As per a report published in 2019, millennials were spending at least $100,000 to purchase an artwork online. Furthermore, four percent of millennials spent one million dollars doing that. Particularly, Integra has turned into a tool for the millennial collectors and emerging artists. 

Now, the trend got further exacerbated around 2020 because the affluent millennials focused on arts and culture investments at the time of quarantine. It seems evident that more people are eager to bring art into their lives. There are popular and upcoming online art marketplaces that have sold more pieces than ever to collectors last year. In fact, some of them claim that their e-commerce sales have skyrocketed to 150 percent within about one and a half year as their in-person art section had to shut down because of the pandemic. It is also interesting to note that the millennial art collectors are more strategic and calculative with their high-end purchases than the earlier generation as they see them as a viable way to make some money. Experts suggest that millennials have a greater probability than any other generation to perceive art as one of the financial assets and a part of a complete wealth-building program. 

Art-flipping, a similar concept to house-flipping, has also been gaining ground in recent years, adding to the demand for NFTs. The millennial are trying to quickly resell art pieces after purchasing in the hope of earning a good profit. Many of them are focusing on crating the collection as they are motivated by the thought of personal fulfillment in terms of art collection. The irony is that millennial purchasing art online might be looking to disperse the feeling of ennui from the ever-increasing central role of technology in their lives. The homogeneous impact of technology tends to make a generation lose its identity. Thus, individuals desire to project their individuality now more than ever. After all, what you collect is the representation of who you actually are? 

 

Digital Channels For Digital Art 

Now, there is no denying that the biggest point of discussion in art collections at present is the way the NFTs – the highly hyped digital pieces, have entered the scene. The boom became especially noticeable all over the world after the sale of an artwork by Beetle, whose real name is Mike Winkelmann. He sold a piece in March at Christie’s for a whopping $69.3 million. Such work uses blockchain technology, which is the technology right at the center of cryptocurrency. Many collectors might not go ahead and purchase NFTs in bulk, though they are definitely open about collecting new media. As such, video art, film, and digital art are now forming at least 16 percent of the holdings.  

The fact is that NFTs are way too coupled with cryptocurrency at present. There is a lack of avenues for people to spend their crypto-coins. Thus, the NFTs are offering those crypto-millionaires a good hobby to spend their money on. Now, decoupling NFTs and cryptocurrencies might help us reach something that is more valuable – the blockchain part. When used wisely, the blockchain can be a good way to put the power back in the hands of the creator.  

The world of fine art has been searching for viable ways to get the tech community engaged and is yet to taste success in this field. Maybe decoupling crypto and art NFTs can show a way to ensure that. Furthermore, generally stating, the percentage of art collection secured and kept digitally is directly proportional to the age of the collector. The younger the art collector, the higher is their NFT investments. The figure stands at eight percent for the millennial and eighteen percent for gen Z, which means the young collectors are following the same route. So, you can expect many more Beetles to get minted in the times to come. 

 

What Makes The Millennials Collect NFTs? 

The stronger market position enjoyed by the millennial in terms of NFTs is not surprising. They have reached a stage where their purchasing power is the maximum. Gen Z has yet to reach that point where they can be major players. Since millennial are beginning to purchase homes and start families, they are affecting several markets. As such, the rising expenditure by the millennial on art is in sync with the rising luxury expenditure they have in other areas. For instance, reports have suggested that a majority of high-income millennial are okay with spending over five thousand dollars on luxury trips. 

All the millennial are spending way more than the pre-pandemic levels, and many of them have chosen art to do so. Unlike several other art collectors, spending greater time at home has made them deeply think about the art they live with and the art they would want to live with. To add to that, cryptocurrencies give them the freedom to shop from anywhere in the world, which adds to their expenditure. The art studios have claimed that they have accelerated their buying in volume. A greater use of social media offers millennial a sense of discovery that widens the scope of their perception. There is no need to take geography into account both for the art studios looking to buy in and the collectors adding new pieces to their collection. 

 

The Endnote 

The movement towards digital business transactions and buying artworks that no collector has set their eyes on is here to stay. At present, thirty-seven percent of the market has gone completely digital, with no signs of abatement. This holds true even after the widespread vaccination has allowed the art studios to reopen and the sales to resume. The dealers are now looking for new buyers through reliable online channels. 

vig-NFT millennial attention
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