The world of non-fungible tokens (NFTs) continues to evolve, with artificial intelligence (AI) art collections emerging as the standout performers in an otherwise subdued market. Despite trading volumes hitting local lows, floor prices for many NFT collections are quietly on the rise, and AI-driven creations have surged to outperform much of the market. Two notable examples—Winds of Yawanawa by Refik Anadol and alignDRAW by Elman Mansimov—have seen substantial gains, signalling a shift in the digital art landscape.
In the past week, Winds of Yawanawa, a highly regarded AI art collection, jumped from 3.9 ETH to 7 ETH, an increase of 80%. Similarly, alignDRAW, a collection of the first-ever text-to-image prompts generated in 2015, leaped 90%, rising from 0.83 ETH to 1.57 ETH. These gains make them some of the biggest movers in the NFT space. Both collections are drawing attention not only for their creative uniqueness but also for the use of AI technology in their development, a trend that is beginning to capture the imagination of collectors and investors alike.
Interestingly, the performance of AI-generated art comes at a time when the broader NFT market is relatively quiet. Trading volume across NFT marketplaces has plummeted to levels not seen since before the boom of 2021. In August alone, just $148 million worth of NFTs were traded, a stark contrast to the peak days of January 2022 when over $100 million could be traded in a single day. Despite this, the price appreciation of leading NFT collections, especially those using AI, points to an evolving dynamic in the market where value continues to grow even as fewer transactions are taking place.
Refik Anadol’s Winds of Yawanawa has been at the forefront of this AI art movement. Known for blending traditional digital art with AI-generated elements, Anadol has gained widespread recognition. His works have even earned a permanent place at the Museum of Modern Art (MoMA), making him one of the most influential digital artists of the era. The significant price rise in his NFT collection underscores the growing demand for AI-integrated art and its growing legitimacy in both digital and traditional art spheres.
Meanwhile, alignDRAW, created by Elman Mansimov, is a fascinating retrospective of AI’s early days. The collection represents a minting of the very first text-to-image prompts generated in 2015. These prompts, produced during the infancy of AI’s creative potential, are now regarded as valuable pieces of digital history. Mansimov’s work captures the imagination by transporting collectors back to the origins of AI art, offering a unique window into how far the technology has come.
The steady rise in floor prices across NFT collections is not limited to AI art. Well-known collections such as Bored Ape Yacht Club, Doodles, and Pudgy Penguins have also seen gains in recent weeks, with most experiencing price increases between 5% and 10%, according to Blur, an NFT marketplace aggregator. Even though trading volumes remain relatively low, the rising floor prices suggest that the market’s overall value is holding strong.
Amidst these developments, it is crucial to recognise the ongoing transformation in the NFT market, especially as it relates to AI art. While AI-driven collections like Winds of Yawanawa and alignDRAW are experiencing remarkable growth, it’s important to note that there is no clear catalyst for this sudden surge in demand. The absence of an identifiable trigger makes this upward momentum all the more intriguing, as it may indicate a broader shift in the preferences of NFT collectors who are increasingly drawn to digital art with AI elements.
The rise in prices, particularly within AI art collections, is happening in the context of a post-Blur farming world. Blur, which incentivised bidding on NFTs and floor price undercutting through airdrop points, significantly influenced market dynamics earlier in the year. Some argue that Blur delayed a major price collapse, while others believe that the platform’s incentive structure may have discouraged real buyers and led to collections being oversold. However, since the conclusion of Blur’s airdrop, the market appears to be stabilising, with collections like Bored Ape Yacht Club seeing a 27% increase in value since the platform’s Blast airdrop in late June.
CryptoPunks, another iconic NFT collection, has similarly benefitted from the market’s recovery. Over the last month, CryptoPunks’ floor price has surged from 20 ETH to 28 ETH. This 40% rise is driven by several high-profile sales, including rare Punk variants such as a “hoodie zombie” that sold for $1.3 million and a “3D glasses hoodie” that fetched $700,000. Even more notably, a Punk with an alien trait—one of the rarest in the entire collection—was sold on August 21 for an undisclosed amount. Given that the last sale of an alien trait Punk in April netted $12 million, this transaction likely involved a similarly hefty price tag.
These gains in the NFT market, particularly within the AI art space, signal that there is still life left in the digital asset class, even as trading volumes remain subdued. Collectors seem to be placing a premium on quality and uniqueness, with AI art collections standing out as examples of this trend. This shift could reflect a broader re-evaluation of what NFTs represent to collectors and investors, with greater attention being paid to the creative process behind the works.
The broader NFT market is still recovering from the speculative frenzy of 2021, and while trading volumes may not return to their former heights in the near future, the current landscape appears to favour more thoughtful, value-driven investments. AI-generated art, with its blend of cutting-edge technology and creative innovation, represents an exciting frontier within this space.
As the NFT market continues to evolve, one thing is becoming clear: AI art collections are not just an interesting niche but may represent the future of digital art. Artists like Refik Anadol and Elman Mansimov are at the forefront of this movement, using AI to push the boundaries of what is possible in digital creation. Their work, and the attention it’s garnering, signals that we may be witnessing the early stages of a new digital renaissance, one where art and technology intersect in ways previously unimaginable.
For collectors and investors, the success of these AI-driven collections offers a glimpse into the future of NFTs. As the technology powering these creations becomes more advanced, and as artists continue to explore the possibilities, the market for AI-generated art is likely to grow. While traditional NFT collections such as Bored Ape Yacht Club and CryptoPunks continue to hold their own, the rise of AI art suggests that the next wave of innovation in digital assets may come from the fusion of human creativity and artificial intelligence.
