Below is a chart and brief excerpt from today's Early Look written by Retail analyst Jeremy McLean.
As the chart of the day below shows, (according to nonfungible.com) NFT transaction volume in 2020 was $251mm, that number became $2bn in just 1Q of 2021. With the buzz around the space, it may sound bubbly, and perhaps it is.
But we think NFTs have the potential to be a real value-creating channel for consumer content generators for a long time, including for recognizable public companies.
You may think its crazy to pay $500 for a piece of digital content. To that I would say, as a utility focused shopper, it’s just as crazy to pay $300 for a pair of sneakers, or $700 for handbag. Yet people do that all the time and we invest in it. I won’t judge if there is money to be made.
Even if it is a ‘bubble’, our take today is that it is probably going to get a lot bubblier. Those are the bubbles you want to buy.
Who knows, maybe you’ll even see some Hedgeye NFTs on the market someday.