The sale of a non-fungible token (NFT) piece of art for around $5.8 million has become the most expensive transaction in the history of Art Blocks, a popular platform for generative artists.
Ringers #879, designed by Dmitri Cherniak and coined on Art Blocks seven months ago, was purchased via a secondary market transaction on OpenSea for 1800 ETH (about $5.8 million at current pricing).
Three Arrows Capital, a cryptocurrency investment group, made the purchase. This year, the Singapore-based corporation has amassed a sizable collection of Art Blocks NFTs, including no fewer than ten works from generative artist Tyler Hobbs’ ‘Fidenza’ series, for which it paid up to 320 ether (just over $1 million) apiece. However, this is by far the most money Three Arrows Capital has ever spent on an NFT.
Cherniak tweeted shortly after the purchase, “Good day at the JPEG factory.” Three Arrows Capital CEO Zhu Su also tweeted about the deal.
The transaction represents the highest value ever paid for an Art Blocks piece, with the previous record standing at 1000 ether (about $2.6 million). It is also more than three times the previous highest auction price for a single piece in the Ringers collection — 500 ether (about $1.6 million).
NFTs are making a comeback.
The deal takes place in the midst of a resurgent market for NFTs. The Block’s data dashboard shows that interest in the digital collectibles market had faded following a brief surge in early 2021, but has since regained to all-time highs in trade volume and activity over the summer.
According to CoinMarketCap data, Art Blocks has been taking full advantage, now sitting above all other collections in seven-day trading volume. CEO Erick Calderon has announced plans to reduce the rate at which speculators purchase paintings from the platform.
“Now, every time we issue something, it seems like this drop because it sells out instantly,” he added recently. “That is not the intention. It’s a little insane.”