At the end of March 2020, as much of the world went into lockdown, something unexpected was happening at the intersection of art and blockchain. While the broader crypto market reeled from Black Thursday — with Bitcoin down to $6,438 and Ethereum at $133.59 — a small but determined community of digital artists and collectors was quietly building what would become a multi-billion dollar market. The NFT revolution wasn’t born in the mania of 2021. It was forged in the stillness of March 2020.
TL;DR
- Nifty Gateway, acquired by Gemini in 2019, launched its curated NFT marketplace in March 2020, pioneering the “drop” model
- Renowned artist KAWS released “Expanded Holiday” as digital art during March 2020, bridging traditional and crypto art
- CryptoPunks values dropped 44% during the March 2020 crash, creating a generational buying opportunity
- COVID-19 lockdowns drove artists and collectors toward digital platforms, accelerating NFT adoption
- Total NFT market in early 2020 was under $1 million monthly — a fraction of what it would become just one year later
When the World Stopped, Digital Art Started
The timing was almost poetic. Just as galleries shuttered, museums closed their doors, and art fairs were cancelled worldwide, a new kind of art marketplace was coming online — one that didn’t need physical space. Nifty Gateway, founded by brothers Duncan and Griffin Cock Foster and acquired by the Winklevoss twins’ Gemini exchange in 2019, officially launched its curated NFT marketplace in March 2020.
The platform introduced a concept that would define the NFT market for years to come: the “drop.” Instead of a permanent marketplace where listings slowly accumulated, Nifty Gateway offered limited-edition releases from curated artists — available for a short window, creating scarcity and excitement. It was a model borrowed from streetwear and sneaker culture, adapted for blockchain-based digital art.
At a time when ETH was trading at approximately $133, the economics of creating and collecting NFTs were remarkably accessible. Gas fees on Ethereum were a fraction of what they would become during the 2021 boom. For artists who had been experimenting with blockchain since the days of Rare Pepe and CryptoKitties, March 2020 felt like the beginning of something real.
KAWS Goes Digital
One of the most significant moments for NFTs in March 2020 had nothing to do with crypto-native artists. Brian Donnelly, known professionally as KAWS — one of the most commercially successful contemporary artists in the world — launched his “Expanded Holiday” project as digital art. This wasn’t a crypto insider dabbling in NFTs. This was a globally recognized artist choosing to release work on the blockchain.
The significance was hard to overstate. KAWS brought mainstream art-world credibility to a space that had been, until then, largely dismissed as a niche curiosity. His involvement signaled to other traditional artists that digital art on blockchain was worth taking seriously. It also introduced the concept of digital collectibles to an audience that had never heard of non-fungible tokens.
The CryptoPunks Dip
Meanwhile, CryptoPunks — the original NFT project created by Larva Labs in 2017 — was experiencing its own Black Thursday. Between February and March 2020, CryptoPunks values plummeted approximately 44%, mirroring the broader crypto market crash. Punks that had been changing hands for modest sums became even cheaper.
In retrospect, this was one of the greatest buying opportunities in NFT history. The same CryptoPunks that could be acquired for a few hundred dollars in March 2020 would sell for hundreds of thousands — and in some cases millions — within 18 months. But at the time, very few people were thinking about buying cartoon pixel art during a global pandemic and financial crisis.
The Infrastructure Builds Quietly
Beyond the headlines, March 2020 was a month of quiet infrastructure development for the NFT ecosystem. The ERC-721 standard, which defines how non-fungible tokens work on Ethereum, had been established for about two years. Projects like Decentraland were selling virtual land as NFTs. Axie Infinity was building what would become the play-to-earn gaming model. And OpenSea, which had launched in 2017, was steadily improving its marketplace features.
What made March 2020 different from any previous month was the convergence of forces. COVID-19 lockdowns meant millions of people were stuck at home with time to explore new digital experiences. The crypto crash had pushed ETH prices low enough that experimenting with smart contracts was cheap. And a new generation of platforms — Nifty Gateway, soon followed by Foundation in May 2020 and many others — was making it easier than ever to create, buy, and sell digital art on the blockchain.
A Market in Its Infancy
By March 31, 2020, the total NFT market was generating well under $1 million in monthly trading volume. For context, monthly NFT trading volume would exceed $200 million by February 2021 and reach billions by late 2021. But the seeds planted in March 2020 — the platforms, the artists, the collectors, the cultural momentum — were the foundation upon which that explosion was built.
The pandemic, for all its devastation, proved to be an unlikely catalyst for digital art adoption. When physical galleries became inaccessible, artists who had been skeptical of digital distribution suddenly found themselves with few alternatives. Collectors who had never considered buying art they couldn’t hang on a wall began to reconsider. And the blockchain infrastructure was there, waiting, ready to authenticate and preserve ownership of digital creations in a way that had never been possible before.
Why This Matters
The NFT market that captured the world’s attention in 2021 didn’t emerge from nowhere. It was built in months like March 2020 — when the traditional art world was on pause, crypto prices were in the gutter, and a small community of believers was quietly laying the groundwork for a revolution in digital ownership. The artists who minted NFTs during this period, the platforms that launched, and the collectors who bought when nobody was watching — they were the pioneers of a market that would eventually reshape how we think about art, ownership, and value in the digital age.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The NFT market is highly speculative and volatile. Always do your own research before making any investment decisions.
CryptoPunks dropping 44% in march 2020 was the greatest buying opportunity in NFT history and nobody realized it
easy to say in hindsight. at the time everyone thought crypto was dead and NFTs were a joke
thats literally the point though. the best trades always feel terrible in the moment
punk_hunter_ the 44% CryptoPunks crash was the generational buy. floor went from 15 ETH to under 1 and literally everyone was laughing at you for buying. those people are retired now
punk_hunter_ punks floor went from 15 ETH to under 1 ETH and most people were panic selling ETH itself. you needed conviction on both ETH AND punks simultaneously. almost nobody had that
punk_hunter_ punks floor went from ~15 ETH to sub-1 ETH during that crash. the people who bought the dip are up 1000x and still holding
KAWS dropping Expanded Holiday during a global pandemic is wild. dude was way ahead of the curve on digital art
nifty gateway pioneering the drop model in march 2020 and now every platform copies it. respect to the OGs
Nifty Gateway launching curated drops in March 2020 while BTC was at 6438 was insane timing. most people were panic selling everything and these folks were building the NFT market from scratch
the NFT market was literally under 1M monthly and somehow Nifty Gateway saw the potential. that kind of conviction in march 2020 when everything was crashing takes serious vision
cryptoPunks dropping 44% during the march 2020 crash was the generational buy signal. floor was like 15 ETH at the time. try buying one now
KAWS dropping expanded holiday during the lockdown was ahead of its time. traditional art world didnt take digital seriously until beeple sold for 69M a year later
candle_watch_ the traditional art world still doesnt take NFTs seriously in 2025. KAWS was a bridge but most gallery curators still think digital art is a phase
KAWS dropping expanded holiday during the crash was either genius or lucky timing. either way it bridged traditional and crypto art before anyone else
CryptoPunks at a 44% discount and most people were too busy panicking about COVID to notice. the best deals always hide during chaos
Yelena S. the best deals hide during chaos is right. punks at 44% off during COVID panic while everyone was selling everything for rent money
Nifty Gateway launching the drop model in March 2020 basically created the FOMO mechanics that defined the entire 2021 NFT cycle
drop_hunter_ the drop model was genius because it manufactured scarcity in a market with infinite supply. Nifty figured out FOMO before anyone else in crypto art
Lockdowns definitely accelerated digital ownership experiments. NFTs were the natural outlet once people had more screen time.
the timing lined up perfectly with stimulus checks too. Easy money found its way into collectibles.
Ethan Cole stimulus checks definitely fueled it but the real trigger was everyone stuck inside with nothing to spend money on. boredom plus stimulus plus crypto twitter was the recipe
stimmaxi_ $1200 stimulus checks went straight into ETH and NFTs. the government accidentally funded the NFT boom. you cant write comedy better than that
stimmaxi_ boredom plus stimulus plus crypto twitter was the exact cocktail. remove any one ingredient and NFTs dont happen the way they did
punks at a 44% discount during covid panic was the easiest money ever. people were literally selling culture defining assets to cover rent
CryptoPunks at a 44% discount during COVID panic was the generational buying opportunity. People were selling culture-defining assets for rent