Non-fungible tokens (NFTs) are coming back into the fold this month, after a brief lapse in popularity. It seems that crypto’s return to bullishness is making investors excited once again at the prospect of owning one-of-a-kind digital collectibles. Helping to spur that interest are multiple pieces of news detailing NFT purchases by crypto influencers and banking institutions alike. NFT stocks stand to benefit the most from this reinvigoration, and many large NFT plays are gaining as a result.
NFTs drove people crazy through the end of last year and the beginning of 2021. People clamored to learn everything they could about the mysterious digital tokens after hearing stories of people spending millions on unique pieces of digital art. With the crypto crash of early summer, that interest faded in sympathy. However, it’s now back as crypto returns to the investing spotlight.
This week is showing just how big NFTs are once again. Justin Sun, creator of the Tron (CCC:TRX-USD) network, is causing a stir with his purchase of a rock NFT, which totaled $611,000. Meanwhile, institutional banks are getting with the times by buying their own NFTs. Visa (NYSE:V) spent $150,000 to buy its own CryptoPunk NFT. CryptoPunks are one of the earliest NFTs; 10,000 unique pixel sprite characters have been minted, some of which have sold for millions.
Visa has been keeping a collection of items they deem to be valuable to the history of commerce, including things like paper credit cards and early credit payment machines. It says NFTs will be an integral way in which humans conduct commerce transactions, and so it’s adding the digital art to its archive.
NFT Stocks Gain as Focus Shifts Toward the Future of Non-Fungible Tokens
Visa is not alone, either. Many crypto authorities and consumers alike are bullish on NFTs’ place in the future of blockchain and digital transaction. Diogo Monica, founder of crypto bank Anchorage Digital, tweeted his revelation about the space after his bank facilitated the Visa transaction. Meanwhile, Waves (CCC:WAVES-USD) founder Sasha Ivanov has been saying the space will be crucial for digitally proving ownership over important documents.
Obviously, NFTs are going nowhere. That’s why NFT stocks are gaining so heavily today. Art group Takung Art (NYSE:TKAT) is gaining 7.5% this morning as one of the largest publicly traded dealers of NFT art.
Likewise, venture capital groups who have bought into the NFT craze early are seeing an influx of buyers this morning. Vinco Ventures (NASDAQ:BBIG), which deals in three-dimensional NFTs, is up over 8%. Jiayin Group (NASDAQ:JFIN) is gaining over 13% today as well, after entering the NFT space in the spring.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.