Whats up with Art Blocks?

Art is the only use case for NFTs with product-market fit, so far

Author

The Metadata
August 08, 2023

Welcome to The Metadata, the only NFT newsletter that you’ll ever need. Just a quick note that there will be no Friday edition this week, as we’ll be out on a short break.

Reminder: If you’re here and interested in NFTs today, you’re a champion. We’re still so early to a $1T industry of the future.

Today we cover:

  • DeGods Season III launching this week

  • Tuesday Data Dive: What’s going on with Art Blocks

  • Someone exploits a Blur bot and makes 800 ETH on Azuki

Market Update: All Eyes on DeGods

Most NFT collections were pretty much stable in floor prices over the week. Except for DeGods, whose price is creeping up slowly on the back of anticipation of its Season III launch on 9 August.

It looks like there’s going to be:

  • An art refresh and more female DeGods

  • A rewards program for DeGods holders

Many people are still suffering PTSD from the disastrous Azuki Elementals mint so lets hope DeGods delivers. Otherwise it’s going to be another major blow for the space

Notable collections:

  • DeGods (9.1 ETH, +9% from last week)

  • Mutant Ape Yacht Club (5.8 ETH, +2%)

  • Bored Ape Yacht Club (29.2 ETH, +1%)

  • Azuki (4.9 ETH, no change)

  • Milady (3.4 ETH, +28%)

Tuesday Data Dive: Art Blocks

This week, we’re taking a look at Art Blocks.

Now, let's be real. As much as some folks might grumble about it, art has been the only use case for NFTs that has seen product-market fit.

And Art Blocks is the premier generative art platform on Ethereum, home to iconic collections like Chromie Squiggles, Fidenza, Ringers. Fun fact: one of these Ringers, known as 'The Goose', was sold for a whopping $6M! That's a lot of golden eggs.

Source: Dune @cat

The community of unique Art Blocks collectors has been on a steady upward trajectory, growing from 28,000 in January 2023 to approximately 45,000 this month. That's an impressive 60% increase in just seven months.

Source: Dune @cat

However, the secondary trading volume on Art Blocks has remained relatively stable, hovering between $1M - $2M weekly. The noticeable spike in May could be attributed to a surge in interest following a Sotheby’s auction of generative art NFTs.

Source: Dune @cat

A closer look at the secondary market activity on Art Blocks reveals a clear concentration of attention on a handful of collections. Squiggles and Fidenza alone account for over 50% of all traded volume. The long tail of Art Blocks NFTs, categorized under 'Other collections', typically represent only about 20% of the volume.

My take on Art blocks and generative art: As with many things in life, there’s a power law distribution in art. A few culturally important collections will continue to accrue value over time (e.g. Squiggles), while the majority will not be valuable.

Pro tip: Collect what you love. If it vibes with you, chances are it'll vibe with others too. And even if it doesn't make you rich, at least you'll have a killer piece of art to show off.

Our Favourite Tweets

🐥 Smart guy exploits a bot and makes 800 ETH profit on Azukis. Now the bot owner is threatening legal action

🐥 Luca explains how value accrues to NFTs

🐥 There's an edge to be had in gaming because more people just larp at it and don’t really understand the industry

🐥 Wale launches a support to earn program: seems more sustainable than launching an NFT and charging royalties

🐥 Compressed NFTs on Solana are gaining traction

🐥 Reboot protocol is launching its $GG token soon

🐥 There’s money to be made hunting rare sats on Bitcoin. Billy sifted through $250M worth of BTC

🐥 A real player’s take on Parallel’s trading card game: laying out both the good and the bad

Upcoming Mints

🍿 Base paint, a fun pixel project on Base. Minting on 9 August

🍿 Art: Bright Moments x Casey REAS’s 923 Empty Rooms. Minting on 14 August

🍿 Art: The Boys of Summer by Mitchell F Chan. Minting on 16 August. 999 supply @ 0.12 ETH

That's it for today folks, see you tomorrow. If you want more, follow us on Twitter (@the_metadata). If you were forwarded this newsletter, you can subscribe with just one-click:

Disclaimer: This newsletter is for educational purposes only. None of this is financial or investment advice. It is not a solicitation to buy or sell any assets. Minting and buying NFTs is risky. Please do your own research.