NFTs are far more liquid than the physical art market, O\u2019Neill said. \u201cIf you try to sell a painting that\u2019s worth more than a couple hundred dollars, you won\u2019t get any buying action unless you go to a traditional market.\u201d<\/p>\n

While traditional art may have a less liquid market, blue-chip NFTs are limiting because to buy one, the full amount in cryptocurrency is required, which often limits the purchasing pool to a small group of people.<\/p>\n

\u201cThe cheapest BAYC is north of $350,000 \u2014 if you have that in cash, you can put a down payment on a home,\u201d Josh Bobrowsky, CEO of Parzival Fund, said to TechCrunch. \u201cThat\u2019s something people don\u2019t realize is not only are these expensive, there\u2019s no leverage; if you buy a Lamborghini, you might only need $50,000 to put down on a $4 million Lamborghini. But if you want a BAYC, you need the full amount of cash in ethereum today, completely liquid.\u201d<\/p>\n