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The Art Market
The conditions to renovate the dynamics of the art market derive from the uncertainty and flexibility that have characterized the sector in recent years. Virtual platforms have favored a growth in terms of transparency and awareness of the sector, initiating a process of change that invites the players of the market to experiment. By analyzing demand and offer for collectibles, it can be claimed that, during 2020, some of the main trends of 2019 has seen confirmation or growth, showing a strong push for technological innovation.
The growth in private sales, happened between 2019 and 2020, testifies an increased desire for confidentiality and transaction speed. Both these aspects are essential when it comes to NFTs where the payment, made through a crypto wallet using cryptocurrencies, is immediate.
The online-only auctions have recently conquered a large segment of young buyers, with a recognizable and well-defined profile. Christie’s reported that 32% of new buyers in online only auctions are between 23 and 38 years old while Sotheby’s has doubled the number of buyers under 40.
The new generation of collectors is formed by the so-called Millennials: people born between 1980 and 2000, the same age group that represents the majority of retail investors in the crypto market.
Covid-19 and the resulting restrictions have brought down many industries, including art. Visitors to the world’s 100 busiest art museums have dropped from 203 million in 2019, to 54 million in 2020: a 77 percent drop. Less revenues translates into less money to preserve the artistic heritage, and the future forecast is a shrinking in the cultural offer.
Meanwhile, the NFT market is experiencing exponential growth, going from a total market capitalization of 720 million at the beginning of 2021 to 5.3 billion at the end of the same year, arousing the interest and promoting the entry into the sector of large multinationals such as Ferrari, Gucci, Adidas, Nike, Dolce&Gabbana, Lamborghini, Disney, Alibaba and many others.
MIDA’s purpose is to provide art institutions and artists with the best tools to connect these realities in the safest and most efficient way, totally in compliance with regulations.