Fidenza #313 NFT by artist Tyler Hobbs just sold for 1,000 ETH. At today’s price, that’s the equivalent of $3.35 million.
Even more surprisingly, the seller is OpenSea username “PizzAle”, who paid 0.58 ETH (about $1,100) for it two months ago, marking an impressive return on investment.
The Fidenza series was launched in June this year and includes 999 different NFT artworks. Each piece is formed using an algorithmic technique to create unique colored rectangular and square patterns to fill the canvas space.
Hobbs describes this technique as being able to produce a wide range of scales, textures and colours. In turn, this blends together to “create a wide range of generative possibilities.”
“By far, Fidenza is the most versatile algorithm I have. While the program has always focused on structured curves and blocks, the variety of scales, organization, textures and use of color it can employ creates a wide range of generative possibilities.”
The NFT market is making a comeback
While the NFT market had a brief decline, a series of recent high-profile sales suggest that it is making a comeback.
The Stoner Cats series, for example, sold out within 35 minutes of its release, making $8 million in the process. What’s more, demand was so high that congestion on the ethereum network pushed the price of gasoline at the time to 600 gigawatts.
Demand for CryptoPunks was also strong, with demand creating an average selling price of $135,000 per punk.
Devin Finzer, co-founder and CEO of OpenSea, said his platform processed $95 million in transactions in two days since the start of the month.
“In 2020, OpenSea did about $21 million in total transaction volume. In the last two days, we did $95 million. the growth curve for NFTs is insane.”
Meanwhile, data analytics firm Messari has released data showing that OpenSea has surpassed $1 billion in transaction volume so far this year.
The NFT industry seems to be on the rise alongside the renewed bullishness of cryptocurrencies.
Opinions remain deeply divided
That said, discussions on social media still paint a picture of disdain when it comes to overpriced NFT artwork.
In response to the sale of Fidenza #313, the most popular Twitter comment noted that saving the image was free.
“I just spent 0 ETH to save this to my computer.”
In addition, another comment raised the possibility that the sale of Fidenza #313 was a laundering sale to artificially inflate the price of the piece/collection. This poster then mentioned money laundering, which is now becoming a recurring theme in the expensive NFT.
Art in the digital age, or money laundering techniques? Perhaps a little of both. In any case, the jury is still out on NFTs.