The digital art collection Lil Moon Rockets sells nearly two-thirds of its latest NFTs in the two weeks since the sale began.
Lil Moon Rockets Head to the Moon
Binance Smart Chain (BSC) hosted the sale of the pieces, which Lil Moon Rockets (also the name of the team behind the collection) calls vector pop art.
Each piece sold for 0.5 BNB – Binance Coin – putting the total value of the sale so far at just under $1 million (4,158 BNB) at press time. The pieces went to 411 separate collectors (as per the address count), each with an average of 20 LMR.
Uniquely, Lil Moon Rockets is conducting a “blind-sale”, meaning the exact appearance/nature of each LMR won’t be revealed until the sale is over.
The Lil Moon Rockets team calls this approach a “Fair Distribution” model, presumably intended to stop wealthier NFT collectors from “grabbing” the rarest pieces.
Moreover, the ‘fairness’ approach is extended to ownership, as each NFT gives its final owner full usage rights, including the ability to sell them on.
The NFT space has been heating up recently. According to data from NFT analysts NonFungible, the total valuation of all NFTs sold last week sits at just under $50 million. This includes over 44,500 sales.
Furthermore, the total number of sales since the data were recorded is 5.4 million, worth $381 million. Most of this figure came from payments made in Ethereum (ETH), as the second most valuable platform hosts the most NFT marketplaces.
However, Ethereum’s popularity, both in the NFT and wider decentralized finance (DeFi) spaces, caused its fees to skyrocket. This enabled decentralized exchanges (DEXs) such as Uniswap (UNI) to quote extremely expensive fees, as much as $100 per transaction.
Of course, this renders most transactions inaccessible for the majority of crypto-users. As a consequence, many DEXs (and NFT marketplaces which are also DEXs) are switching platforms.
BSC, among others, benefits from this migration. The justification is simple: in 2020, transactions on BSC were up to 49 times cheaper for DEXs than DEXs operating on Ethereum.
Both the speed and low cost provide the perfect environment for NFT sales such as the Lil Moon Rocks auction, to continue their rapid growth in value.
Art Follows Wealth
Nevertheless, something must be said about the timing of this new craze. The fundamental axiom of finance that art follows wealth might be proving true at the moment.
The cryptocurrency market is seeing record demand; demand that triggered a surge in crypto-prices. The total cryptocurrency market capitalization hit $2 trillion last month, making many millionaires.
Accordingly, these millionaires are now on a quest to find new ways to spend their wealth. The NFT space is seeing some of this. Moreover, NFTs are being popularized by a number of celebrities which only increases their value further.
For now, it seems the space can only go higher, and Lil Moon Rockets is definitely riding the wave.