The NFT As A Consequence Of Covid-19: Is It A New Digital Virus?

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Jelvix reveals the boom in the NFTs market through the COVID-19 pandemic.

“Helping our clients to improve their business transformations in the digital world has been a major focus for Jelvix throughout our history” - Oleksandr Andrieiev, CEO, Jelvix.

With a staggering 1785% rise in market cap in Q1 2021, NFTs are proving to be the current hot trend in the crypto space. The NFT market has seen major eruptions in market growth from the last quarter of 2020.

Between October and December 2020, $93 million worth of NFTs were sold, and by the end of April 2021, the NFT market has further risen to about $490 million. The pandemic shutdown and the new love for cryptocurrencies most certainly played key roles in the huge swell of the NFTs market. The market for non-fungible tokens has continued to surge as more artists jump in to monetize their digital assets.

While the global economy took a depressing hit in the wake of the deadly coronavirus pandemic, the crypto economy seemingly took off and has been waxing stronger ever since.

Before the pandemic shut down the economy, the world’s number 1 cryptocurrency, Bitcoin, was trading at about $7,200.

But the COVID-19 lockdown that followed certainly prompted investors to take a more intriguing look at the digital token, which caused the price of bitcoin to explode with over a 700% increase. Other major cryptocurrencies, including Ethereum, followed suit.

“Helping our clients to improve their business transformations in the digital world has been a major focus for Jelvix throughout our history,” said Oleksandr Andrieiev, Chief Executive Officer at Jelvix. “Given the pace of change through COVID-19 pandemic and how significantly market conditions have shifted, it is even more essential that we double down on the power of technologies like blockchain and NFT, cloud and AI, coupled with human ingenuity, to create value for every industry, and every Client.”

Today in the world of art, non-fungible tokens (NFTs) give artists the option of cryptographically securing their digital assets and auctioning them off in 24-hour online marketplaces which have more liquidity than traditional art markets.

An NFT is a digital asset with verifiable ownership rights logged into the blockchain technology. Most NFTs are built using Ethereum, the decentralized open-source platform that uses blockchain technology to create and run decentralized digital applications that enable the creation of smart contracts.

Non-fungible tokens have been around since the 2010s, but with the recent boom in the crypto economy, with many cryptocurrencies reaching record highs, NFTs are also becoming mainstream and attracting investors and traders like never before.

According to a 2020 NFT Report which was published by L’Atelier BNP Paribas and, the market value of the NFT tripled in 2020, with a current value of over $250 million. But this figure was almost doubled in the first quarter of 2021 alone, with a current market cap of over $450 million.

One of the major NFT marketplaces, Opensea, which saw a gross sales of nearly $5 million in the first week of January 2021 recorded over $100 million in NFT sales within a short period of three months.

With the apparent boom in the NFTs market, more artists, musicians, influencers, and creatives are seizing the opportunity to monetize their digital assets that were previously free or undervalued. Digital assets converted to NFTs range from songs, music videos, memes, GIFs, paintings, etc. Digital transformation companies like Jelvix helps artists create financial value for their work and turn music, art, and ideas into NFTs, providing custom solutions by developing unique NFT platforms.

Among the artists who have taken advantage of the NFTs is the American digital artist and graphic designer Mike Winkelmann, professionally known as Beeple. Beeple recently sold an NFT at a staggering amount of $69.3 million, which is the 3rd highest price achieved by a living artist.

Jack Dorsey, the Co-founder and CEO of Twitter, also sold his first ever tweet as an NFT for over $2.9 million. In the same vein, many artists and creatives are tapping into this new “digital virus” and artworks are being sold for as much as five and six figures each, making digital art works much more valuable than ever before and more rewarding for the creators.

NFTs are essentially digital, and the bidder who eventually buys it doesn’t receive any physical product, but instead, they get an encrypted file that is logged in the blockchain. Besides the rewarding sales of digital assets, non-fungible tokens also offer artists more ways to earn.

For instance, some online marketplaces let artists and creators earn royalties from the subsequent reselling of their art work in the secondary market. It helps artists keep a close eye on how their work is distributed and who owns it at each point.

NFTs with digital contracts will bring in non-stop royalties for their original owners. Despite the recent fanfare surrounding NFTs and the tremendous market growth it has seen, the market is beginning to wane with a rapid decline in sales volume.

About Jelvix
Jelvix is a leader in innovative software development and blockchain services providers with cross-industry expertise and a drive for continuous improvement. Their custom blockchain development services are robust and stable. The current tech stack includes the following blockchain platforms: Bitcoin, Ethereum, Solana, Matic, BSC and more. Their team of experts has helped transform businesses with bespoke applications and software solutions that streamline operations and accelerate business growth. While other firms aspire to deliver a similar strategy, Jelvix, as a digital transformation expert, demonstrates deep industry knowledge and builds digital products with speed and agility. Jelvix is actively evolving the Tech blog and YouTube channel based on the company's experience. In addition, their team of experts participated in the creation of the Blockchain Strategy Course for RMIT University in Melbourne.

Having been an industry leader on the market for more than 10 years, with dozens of served clients across Europe and America and hundreds of delivered projects, Jelvix has accumulated a powerful set of expertise in technology and software engineering processes. The Jelvix company also helps organizations capture blockchain's power by integrating disruptive technology into their business models to reduce fraud and capitalize on data integrity and compliance.

Contact: Jelvix Team
Tel.: +1 240 507 54 71

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