CryptoPunks: a New NFT Phenomenon

By Aleksandra Wilson
2 min read October 21, 2021

This year the market for non-fungible tokens (NFTs), also known as crypto-collectibles, exploded. The transaction volume constitutes $2.5 billion in the first half a year as NFTs became mainstream. The increased interest has also resulted in NFT enthusiasts rediscovering the older, previously unknown NFTs, boosting the value of crypto-collectibles to unimaginable heights. 

Among these previously unknown NFT projects is CryptoPunks. It is a collection of pixel-based avatars generated randomly. Some rare and popular CryptoPunks have been sold for millions of dollars. 

About CryptoPunks

Behind this project is Lavra Labs studio. They have developed a series of thousands of images tokenized as NFTs on the blockchain of Ethereum. An NFT implies ownership of a digital item, and in this particular case owning CryptoPunks NFT means that you are the only wonder of a unique pixel avatar. A number of attributes serve as a basis for each randomly generated CryptoPunk. There is a wide selection of designs: aliens, people, apes, zombies. Currently, the most popular and valuable tokens are zombies and aliens. 

CryptoPunks’ Origin

In 2017, CryptoPunks were released for free, even though it’s unbelievable today. The Ethereum standard they use today wasn’t a thing at that time; Lavra Labs released them for the sake of experiment. The volume of NFTs rose during the last three years, although the real surge in demand happened in 2020-2021. CryptoPunks’ secondary market value escalated and led to multi-million-dollar NFT sales. 

CyberPunks’ Potential

CryptoPunks will likely continue to change hands on markets while generating massive returns for investors who invested before the surge. It is impossible to predict whether the current level of demand will go on, although the entry-level cost for these NFTs continues to grow. Most likely, Lavra Labs will release more CryptoPunks taking into account that the most significant part of their appeal is a limited number of them.

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