Crypto Art Is the “Set It and Forget It” Investment of the Decade – Raoul Pal

Ethereum Investment NFT
Raoul Pal also highlights the advantages of crypto art over physical art, such as lower storage costs and the potential for use as collateral.
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Crypto art is poised to become a top long-term investment, claims Real Vision CEO and co-founder Raoul Pal.

“My highest conviction “set it and forget it” investment for the next 10 years is crypto art. For me it’s the most compelling, enjoyable and interesting area in all crypto,” wrote Pal in this X post from Dec. 30.

Pal argues that a confluence of factors will drive significant demand for these digital assets in the form of non-fungible tokens (NFTs). These include the burgeoning wealth generated within the cryptocurrency market, the ongoing devaluation of traditional currencies, and a growing preference for digital assets among younger generations.

Pal believes that crypto art, particularly rare and desirable pieces, will emerge as a highly valuable asset class:

“If, as [Michael] Saylor says, BTC is Manhattan real estate then the best crypto art or NFT’s are the scarcest, most desirable block space of all.”

Crypto Art as a Store of Value

Furthermore, Pal highlights the inherent advantages of crypto art as an investment.

Unlike physical property, which can incur substantial maintenance costs and may be more suitable as a lifestyle asset, crypto art offers significantly lower storage costs and can even serve as collateral.

Pal views crypto art as a mechanism for tokenizing culture and community, transforming previously intangible concepts into valuable assets. Pal points to the “Lindy Effect,” where assets that endure over time gain significant value, as a compelling indicator of the long-term growth potential within the crypto art market.

CryptoPunks is one of the most successful NFT projects. Source: CryptoPunks

“Art has always been upstream and at the nexus of culture, status and money and it will remain so,” said Pal, adding that the most quality art pieces are priced in Ether (ETH) and will tend to outperform Ether over time.

For example, the Beeple series have probably 3x’d ETH performance this year. Seriously valuable art will likely stay on ETH (and to a lesser extent BTC) due to the security needed to secure large single value pieces.”

NFTs Are More Than Just Money

While financial returns are a crucial aspect, Pal also emphasizes that many collectors prioritize building exceptional collections and actively supporting the growth of the crypto art ecosystem:

“Most collectors are trying to build the best collections possible in these early days and also act as patrons to the space to help it flourish. The days of flipping art NFTs is largely over. The game now is to buy and hold the best artists (new or older) and demand will only grow over time while supply gets taken off the market for decades. There is realistically very little supply of established art currently and it will keep shrinking.”

Pal cited Cryptopunks, Bored Apes, and Grifters as examples of influential profile picture (PFP) projects. He also recommended exploring “ultra-bargain buys” like CryptoDickbutts and collections like MFers and Rektguy NFTs.

Pal concluded by advising readers to embark on their crypto art journey with an open mind, as it can lead to a deep dive into the world of digital art. “The mediums will change massively over time as holograms and holodecks become the dominant substrate for digital life,” he added.

CryptoDickbutts NFT collection saw a 310% increase in sales volume over the last 2 months. Source: OpenSea

NFT Market Resilient in 2024

Despite facing challenges in 2024, NFTs continued to find their place within the Web3 landscape.

According to data tracker CryptoSlam, NFT sales volume reached approximately $8.8 billion in 2024, a slight increase compared to the previous year, when NFT sales volume recorded $8.7 billion,

However, the number of active NFT buyers surged to 7.6 million, marking a 69% year-over-year increase from the 4.5 million buyers observed in 2023. The number of NFT sellers also increased in 2024 by 7% and reached over 4 million.

Global NFT sales volume reached $8.8 billion in 2024. Source: CryptoSlam

Several NFT collections are demonstrating continued activity and growth within the NFT space, captivating both investors and collectors.

In December, Ethereum-based Pudgy Penguins led the charge in NFT sales volume, surging 676% to surpass $115 million.

Azuki followed, boasting a 598% sales volume increase and reaching nearly $41 million.

Lil Pudgys also experienced a remarkable 868% jump in sales volume, recording $34.5 million.

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