The Artists Journey
The story of non-fungible tokens in the spring of 2018 is, at its core, a story of pioneers. When CryptoKitties burst onto the Ethereum blockchain in late November 2017, few could have predicted that a simple digital cat-breeding game would congest the entire Ethereum network and introduce millions to the concept of unique digital assets. By May 24, 2018, as ETH traded at roughly $602 according to CoinMarketCap data, the digital collectibles space was navigating its first real hangover — and quietly laying the groundwork for something far bigger.
The artists and developers who gravitated toward NFTs in early 2018 were a motley crew. Some came from traditional art backgrounds, drawn by the promise of provenance and royalties baked into smart contracts. Others were technologists fascinated by ERC-721, the token standard proposed by Dieter Shirley in January 2018 that would formally define non-fungible tokens on Ethereum. What united them was a shared conviction that digital ownership mattered — even if the broader crypto market, still reeling from its January 2018 crash from all-time highs, was deeply skeptical.
CryptoPunks, launched by Larva Labs in June 2017 as a free-to-claim experiment, were changing hands for modest sums. Rare Digital Art, one of the earliest NFT marketplaces, had launched in January 2018. SuperRare, which would become a cornerstone of the crypto art movement, was still months away from its official launch. The creators who were active during this period were building infrastructure, communities, and narratives almost from scratch.
Collection Mechanics
The technical architecture underpinning early digital collectibles in May 2018 was relatively primitive compared to what would emerge in subsequent years, but the fundamental principles were already in place. CryptoKitties operated on the ERC-721 standard (initially a custom implementation that predated the formal standard), with each cat represented by a unique token carrying a genetic code that determined its visual appearance and breeding characteristics.
The breeding mechanic was straightforward but ingenious: two cats could produce an offspring with traits inherited from both parents, introducing an element of genetic algorithm-style randomness that kept collectors engaged. Generation zero cats — the original CryptoKitties released by the development team — carried the most scarcity value, and by May 2018, the most sought-after cats had already traded for significant sums during the December 2017 peak.
Beyond CryptoKitties, other projects were experimenting with different collection mechanics. CryptoFighters allowed users to collect and battle digital fighters. Etheremon built a Pokemon-like creature collection game on Ethereum. Each of these projects used variations of the non-fungible token standard, proving that the concept could extend far beyond digital cats. The gas costs, however, were a persistent challenge — with Ethereum network fees remaining elevated from the CryptoKitties congestion episode, interacting with NFT contracts was expensive for everyday users.
Utility and Perks
In May 2018, the utility of NFTs was a hotly debated topic within the crypto community. Critics argued that digital collectibles were nothing more than speculative vehicles with no intrinsic value. Proponents countered that the ability to verifiably own a unique digital asset — one that could not be duplicated, destroyed by a central authority, or seized — was itself a form of utility that the world had never seen before.
The practical perks available to NFT holders in this era were limited but evolving. CryptoKitties owners could breed and sell their cats. CryptoPunks holders owned a piece of Ethereum history. Some early projects began experimenting with access-based utility — holding a specific token could grant entry to Discord communities, private Telegram groups, or early access to new project launches. This was rudimentary compared to the token-gated communities of later years, but the seed was planted.
For artists, the most significant perk was the ability to embed royalty structures into their smart contracts, ensuring they would receive a percentage of every secondary sale. While this feature was still in its infancy in May 2018, it represented a fundamental shift in the creator economy — one that would prove transformative as the NFT market matured.
Secondary Market Action
Secondary market activity for NFTs in May 2018 was concentrated on a handful of platforms. OpenSea, which had launched in December 2017, was already emerging as the dominant marketplace for digital collectibles. Rare Digital Art and the CryptoKitties marketplace itself were also significant venues for trading.
Trading volumes, however, were a fraction of what they would become. The broader crypto market was in a bearish funk — Bitcoin sat at approximately $7,587 on May 24, down dramatically from its December 2017 high near $20,000. This macro weakness suppressed speculative appetite across all corners of the crypto ecosystem, including NFTs. Many CryptoKitties that had sold for 50 or 100 ETH during the December mania were now available at a fraction of those prices.
Yet within this downturn, a core group of collectors and enthusiasts continued to trade, build, and accumulate. The washout of speculative capital actually served a positive function: it separated genuine believers from tourists. Projects that survived the spring 2018 downturn — CryptoPunks, CryptoKitties, and a handful of early crypto art experiments — would form the foundation upon which the NFT explosion of 2021 was built.
Final Verdict
Looking at the NFT landscape from the vantage point of May 24, 2018, the sector was unambiguously in its infancy. Total trading volumes were measured in the low millions of dollars per month. The number of active NFT projects could be counted on two hands. Most of the crypto world was focused on Bitcoin price movements, regulatory crackdowns, and the ongoing ICO hangover. Digital collectibles were, at best, a curiosity.
But the infrastructure being built during this quiet period would prove remarkably durable. The ERC-721 standard, formally adopted in January 2018, became the backbone of an entirely new asset class. The marketplace dynamics pioneered by OpenSea and others created the template for billion-dollar platforms. And the artists who stuck around during the bear market — creating, experimenting, and building communities — became the foundational figures of the crypto art movement.
The lesson is clear: the most important developments in crypto often happen when nobody is paying attention. May 2018 was one of those moments for NFTs.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. NFTs are highly speculative assets with significant risk. Always conduct your own research before making any investment decisions. Past performance is not indicative of future results.
eth at 602 in may 2018 and punks were sleeping under 100 bucks. feels like ancient history now
eth at 602 in may 2018 and the NFT crowd was already pivoting from kitties to larva labs punks. that was the real alpha
cryptoPunks were sleeping giants in 2018. everyone was laughing at pixel heads while i was scooping them for under 100 bucks lol
under 100 bucks for punks in 2018 was already considered expensive by most people. the real unicorns were the ones buying in 2017 for ETH equivalent of $5-10
under 100 bucks was still a stretch for most people in 2018. the real alpha was buying punks in the larva labs giveaway era for literally nothing
grail_hunter the giveaway era punks were literally walk-in claims. no gas war no mint bots. just a claim button and zero interest. wild
punk_archivist_ giveaway era was 2017 not 2018. by the time crypto kitties hit the punks were already 0.5-1 eth. the real free money era was mid 2017
the giveaway era punks were literally free and people still hesitated. now a single punk floors at 40+ ETH. the alpha was sitting right there in plain sight
larva_maxi punks were free and people still hesitated. now floor is 40+ ETH and same people complain about missing the alpha
The ERC-721 standard was genuinely important though. Before that, NFTs were just a hack on ERC-20. Shirley’s proposal gave developers a real framework.
^ this. everyone talks about CryptoKitties clogging Ethereum but nobody mentions it proved non-fungible assets could work at scale. technical feat even if the cats were silly
CryptoKitties congestion in Dec 2017 was the first real stress test of Ethereum. gas spiked to insane levels and proved the network needed L2 scaling solutions
mint_baron_ CryptoKitties gas spike was the first time the network hit real congestion. proved ethereum needed L2 before L2 existed as a concept
ETH at $602 during this period and people were panicking. fast forward and here we are. the art stuff was always the real long-term play on this chain.
ETH at $602 and people called it a crash. perspective is wild. the art use case was always there but the market was too busy chasing ICO flips to notice
ETH at 602 felt like a fire sale. the punks were sitting right there for under 100 bucks and nobody connected the dots between ERC-721 and long term digital ownership
ETH at 602 called a crash. same people calling 602 a crash in 2018 were buying at 4800 in 2021. the cycle never changes
Tomasz B. people buying at 4800 in 2021 after ignoring at 602 in 2018. the cycle literally never changes
entropy_harvest_ bought my first punk in march 2018 for 0.3 eth. everyone in my crypto group chat called me an idiot. same people were begging for floor prices in 2021
shirley proposing ERC-721 in january 2018 was the inflection point. before that every NFT was a hack. the standard gave developers permission to build
Emilia T. shirley drafting ERC-721 while ETH crashed 70pct from ATH. building infrastructure during a bloodbath takes actual conviction
Emilia T. shirley drafting ERC-721 during a 70% crash while everyone else was panic selling. real builders ship in bear markets
punks under $100 in 2018 and everyone thought they were pointless pixels. the real alpha was always in the boring stuff nobody cared about
ERC-721 was proposed in january 2018 and the NFT market did not actually explode until 2021. three years of building in the trenches while everyone mocked pixel art. that takes patience most crypto people do not have
yeah shirley drafting erc721 in jan 2018 while kitties were the only game in town. real builder energy