NFTs

What is Art Blocks and how do you invest in generative art?

Art Blocks is a platform that enables its users to mint what it calls “generative art.” Generative art refers to art that, in whole or in part, has been created with the use of an autonomous system. 

In Art Blocks’ case, the autonomous system is their smart contracts on Ethereum. It curates and promotes selected creators and collections, enticing users to mint NFT collections that are vastly different from the goofy animal profile pics that have become so obsequious. 

Footprint Analytics – Transaction volume, last 30 days

Since launching in November 2020, Art Blocks has helped bring several top NFT collections to life, including Findeza, Singularity, and Ringers.

Ringers, for example, now has a floor price of 55 ETH on OpenSea (that’s slightly over $100,000 as of Aug.18). When it debuted on Art Blocks on Jan 31st, 2021, each NFT on the Ringers project could be minted for 0.10 ETH, then $131 USD. 

Footprint Analytics – Art blocks Transaction volume, USD, Curated category highlighted, last 90 days

As we can see from the chart above, the Art Blocks collections have an average daily transaction volume of USD 1,455,000, making it one of the top NFTs volume-wise. In this article, we will cover:

The Different Collections

 

Creators can apply their projects to be featured in the Art Blocks Curated Collection. These applications are reviewed by a committee that judges if the project fits the protocol’s requirements.

The Playground is the place for new projects from the creators featured in the Curated Collection. The requirements on this one are lower, as it is meant to be an experimental place and for the evolution of previously curated projects.

The Factory is the place for creators that didn’t want to wait for the Curated selection process or choose to set different requirements for their project. They are still selected directly by Art Blocks as the platform aims to maintain its standards for technical quality and aesthetics.

The creator defines the mint price mechanism, the number of items, and other project features. Then, the Art Blocks platform takes care of the mint execution and promotion. 

Factory Collection

One  think about the Factory collection as where the creators start interacting with the Art Blocks if they don’t want to wait for the committee review process to go directly to the Curated Collection. As creators experiment with their projects and receive feedback from the community, their ideas are polished for a future launch in the Curated collection.

Art Blocks Discord channel – Source: Discord

 One example of a creator that started on the Factory and now is being featured on Curated is Daniel Catt.

He has created four projects so far with Art Blocks. All his previous ones were launched on the Factory, and with a fixed value per mint: 0.128 ETH

Source: Art Blocks Wiki

When these collections hit the secondary market, the average sell value was higher than the mint one. On the collection below, the average sell price is 0.678 ETH, and the current floor price is 0.45 ETH.

One of Daniel Catt’s projects: Source – OpenSea

And now that he has a new collection featured in the Curated collection, so the price of the previous ones can increase on the secondary market as investors visualize a possible valorisation.

How to trade on Art Blocks

Footprint Analytics – Number of trades, last 30 days

Art Block is one of the top NFTs collections when analysing sales volume and market cap However, it is necessary to better understand the platform to successfully find the best opportunities inside of it.

As we saw in the previous sections, while the Factory has more experimentation and more projects, the Curated is the main collection. Therefore, being featured there increases the creator’s popularity. Shvembldr is a good example of the latter: He released 5 collections on Playground after being on Curated, with all of them being almost instantly sold out within minutes

An investor/trader that takes the time to go through the projects on Factory, to check the Art Blocks Discord, and follow their announcement schedule, will be in a better place to find “tag along” opportunities (i.e. find collections that can/will be influenced by a new mint).

 

Author: Thiago Freitas

Data Source: Art Blocks Dashboard

This piece is contributed by Footprint Analytics community.

The Footprint Community is a place where data and crypto enthusiasts worldwide help each other understand and gain insights about Web3, the metaverse, DeFi, GameFi, or any other area of the fledgling world of blockchain. Here you’ll find active, diverse voices supporting each other and driving the community forward.

Footprint Website:  https://www.footprint.network

Discord: https://discord.gg/3HYaR6USM7

Twitter: https://twitter.com/Footprint_Data

 

Michelle Saddozai

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