The Artist’s Journey
The summer of 2019 has been nothing short of transformative for the broader cryptocurrency market, and the ripple effects are reaching corners of the blockchain world that many had written off after the brutal bear market of 2018. Among those corners: the nascent digital collectibles and non-fungible token (NFT) ecosystem, which is experiencing a quiet but undeniable resurgence as Bitcoin’s spectacular rally draws fresh eyes to blockchain technology beyond pure speculation.
Bitcoin has surged more than 200 percent in the first half of 2019, climbing from below $4,000 in January to over $12,285 by July 8, according to CoinMarketCap data. The catalyst behind much of this momentum arrived on June 18, when Facebook formally unveiled Libra, its ambitious cryptocurrency project designed to serve the social media giant’s 2.4 billion monthly active users. The announcement sent shockwaves through both the crypto market and the regulatory world, driving the HFR Cryptocurrency Index up 14 percent in June alone and pushing year-to-date returns for crypto-focused hedge funds past 82 percent.
But beneath the headline-grabbing Bitcoin price action, digital artists and NFT creators have been quietly building. Platforms like OpenSea, which launched in 2017 as a peer-to-peer marketplace for crypto collectibles, have been steadily onboarding artists and collectors who see blockchain as a permanent, trustless ledger for proving ownership of unique digital assets. The broader rally is now accelerating that onboarding, as rising Ethereum prices and renewed mainstream interest draw creators who previously sat on the sidelines.
Collection Mechanics
The NFT market in mid-2019 is anchored primarily on the Ethereum blockchain, leveraging the ERC-721 token standard that was formalized in early 2018. Unlike ERC-20 tokens, which are fungible and interchangeable, each ERC-721 token represents a unique asset with distinct metadata, making it ideal for digital art, virtual real estate, and in-game items.
OpenSea remains the dominant marketplace for these assets, supporting a wide range of collections spanning digital art, virtual land parcels from Decentraland and Cryptovoxels, and gaming items from projects like Axie Infinity and Gods Unchained. The platform operates on a simple auction and fixed-price model, with transactions settled in ETH. With Ethereum trading at $313 on July 8 — up over 90 percent year-to-date — the purchasing power of ETH-denominated collectors has expanded significantly, enabling higher valuations for scarce digital works.
A newer standard, ERC-1155, is also gaining traction, pioneered by blockchain gaming platform Enjin. This multi-token standard allows a single smart contract to manage both fungible and non-fungible tokens, dramatically reducing gas costs and enabling more complex in-game economies. While ERC-1155 adoption remains early, the efficiency gains are compelling for game developers looking to mint thousands of unique items without incurring prohibitive transaction fees.
Utility and Perks
What separates the current generation of digital collectibles from the CryptoKitties hype of late 2017 is a growing emphasis on utility beyond mere speculation. Decentraland, the virtual reality platform built on Ethereum, allows LAND token holders to build and monetize experiences on their virtual parcels. LAND has become one of the more actively traded NFT categories, with parcels changing hands for tens of thousands of dollars in ETH as developers and brands experiment with virtual real estate.
Gaming-focused NFTs are also evolving beyond simple collectibility. Axie Infinity, which launched in early 2018, lets players breed, battle, and trade fantasy creatures called Axies, each represented as a unique NFT. The game has cultivated a dedicated player base, particularly in Southeast Asia, where the play-to-earn potential of blockchain games resonates strongly. Gods Unchained, a digital trading card game backed by Coinbase Ventures, is similarly using NFTs to give players true ownership of their card collections — a stark contrast to traditional digital card games where players license, rather than own, their virtual assets.
The utility narrative extends to digital art as well. Platforms like KnownOrigin and MakersPlace are enabling artists to sell limited-edition digital works directly to collectors, with smart contracts automatically enforcing scarcity and providing creators with royalties on secondary sales. This programmable royalty mechanism is one of the most compelling features of NFT-based art, offering creators an ongoing revenue stream that traditional art markets have never provided.
Secondary Market Action
Secondary market activity for NFTs, while still modest compared to the broader crypto market, has been showing signs of life in tandem with the Bitcoin rally. OpenSea reported steadily increasing transaction volumes through Q2 2019, driven in part by renewed interest from ETH holders whose portfolios have appreciated significantly. The total market capitalization of NFT projects remains a fraction of the broader crypto market’s $330 billion valuation, but growth rates are accelerating.
CryptoKitties, once the poster child for NFT excess, continues to trade on OpenSea, though at a fraction of the frenzied valuations seen during the 2017 peak. The project’s persistence is itself notable — it demonstrates that digital collectibles can maintain a market even after the initial hype fades, settling into a sustainable baseline of collector interest. Rare Generation 0 Kitties still command premium prices, suggesting that genuine scarcity, when properly enforced on-chain, retains value over time.
The Decentraland LAND market has been particularly active, with premium parcels near the center of the virtual world’s map trading at significant premiums. Virtual real estate speculation is emerging as a distinct sub-sector within the NFT ecosystem, attracting both crypto-native investors and traditional real estate investors curious about the parallels between physical and digital land markets.
Final Verdict
The 2019 crypto rally, powered by Facebook’s Libra announcement and a wave of institutional capital, is creating a rising tide that lifts all blockchain boats — including the still-nascent NFT ecosystem. While digital collectibles remain a niche market compared to Bitcoin and major altcoins, the foundations being laid in 2019 are significant. Improved token standards like ERC-1155, growing marketplace infrastructure, and the emergence of genuine utility beyond speculation all point toward a maturing NFT landscape. For collectors and creators willing to navigate the early-stage risks, the current moment represents a compelling entry point into a market that is still priced well below its long-term potential. As Bitcoin hovers above $12,000 and Ethereum approaches $315, the purchasing power and attention flowing into the NFT space will likely continue to grow through the second half of 2019.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The NFT market is highly speculative and illiquid. Readers should conduct their own research before purchasing any digital collectibles or NFTs.
the idea that a 200% BTC rally in 2019 would boost digital collectibles was ahead of the curve. NFTs didnt really pop until early 2021
calling it a resurgence in july 2019 is generous. crypto kitties volume was dead and most NFT projects had like 3 users
3 users per project and some writer called it a resurgence. the copium in mid-2019 crypto journalism was something else
3 users per project and crypto media called it a renaissance. 2019 copium was on another level
looking back at 2019 its wild that anyone thought libra would boost NFTs. the real catalyst was covid lockdowns and stimulus checks
libra did more harm than good for digital collectibles. regulators started paying attention and the NFT space got caught in the crossfire before it even started
HFR Crypto Index up 82% YTD in mid-2019 and most retail had no idea what was happening. the smart money was already positioned