'Banana on the Wall' is an art market exception

Experts say the “million-dollar banana” deal is an isolated case. However, the event shows the influence of cryptocurrency on the luxury art market.

The work “Comedian” (banana taped to the wall) caused controversy when it sold for 6.24 million USD.

Artist Maurizio Cattelan’s Comedian , simply a banana duct-taped to a wall, shocked the art world when it sold for $6.24 million ( including $1 million in fees) at a Sotheby’s auction.

Despite its huge success, the “banana on the wall” also received a fair amount of ridicule. However, Maurizio Cattelan responded in a spectacular way when the work was purchased by Justin Sun, the 34-year-old founder of a Chinese cryptocurrency platform.

On his personal page, Justin Sun affirmed that Comedian is a “cultural phenomenon connecting art, memes and the cryptocurrency community”, and believes that the work will inspire and become a part of art history.

This businessman even declared that he would eat a banana to “enjoy art”.

However, experts have a different view on this controversial deal. David Galperin, Sotheby’s director of contemporary art for the Americas, praised Justin Sun’s decision, saying it was a testament to his efforts to find answers to the biggest questions in contemporary art, such as “How do you value one of the great ideas in the history of conceptual art?”, according to NBC News .

The Art Market Mirror

Contrary to Justin Sun’s excitement, Alex Glauber, founder of AWG Art Advisory and president of the ᴀssociation of Professional Art Advisors, said the Comedian purchase does not reflect the overall market trend.

He compared the deal to the record $450 million sale of Leonardo da Vinci’s Salvatore Mundi in 2017, a time when classical works were being overshadowed by contemporary art.

Through the chain of statues, Comedian, Maurizio Cattelan, through the chain of 6, 2 million, znews art pH๏τo 1

Buying Comedian with cryptocurrency shows the expansion of this ᴀsset class.

Glauber said the “banana taped to the wall” was an isolated case. The $6.24 million price tag was “shocking,” but the absurdity of the work did not represent the general trend.

“This work is like a mirror of the art market, and at the same time inherits the legacy of conceptual art from Duchamp’s time,” said Glauber, referring to Marcel Duchamp, the artist who created Fountain ( a urinal) in 1917, laying the foundation for conceptual art.

In fact, Sotheby’s November auction was somewhat of a reflection of the art market’s bleakness. According to The New York Times , the “Now” section of the auction, which featured works produced in the past 20 years, brought in just $16.5 million in total sales , well below the $72.9 million it brought in in the same sale in 2022.

The art market is in a difficult period, according to Moses of JP Mei & MA Moses Art Market Consultancy, a consultancy specializing in the art market. The main reason is that other investment channels, such as stocks and gold, offer much higher returns.

While some of those who benefit from such ᴀssets will invest in art, the artworks themselves have their own rates of return, which are highly dependent on changes in taste and uncorrelated with macroeconomic trends.

Cryptocurrency ‘takes over’ the luxury market

Justin Sun’s purchase of Comedian with TRX cryptocurrency could signal an expansion of the type of ᴀssets that can be purchased with cryptocurrencies, especially as the value of these financial instruments continues to soar. Bitcoin has more than doubled this year, approaching the $100,000 mark .

According to Sotheby’s, at the time of the transaction, the market value of all TRX in circulation was equivalent to more than $12 billion , while Sun’s net worth was estimated at around $1.5 billion .

Through the chain of statues, Comedian, Maurizio Cattelan, through the chain of 6, 2 million, znews art pH๏τo 2

“Comedian” is likened to a mirror reflecting the gloomy art market.

In fact, according to Robb Report , the use of cryptocurrencies in luxury purchases, from real estate to yachts to jewelry, is on the rise. However, these transactions may not represent the overall trend.

Robert Allen, a lawyer specializing in yacht transactions in South Florida (USA), said that the newly wealthy thanks to cryptocurrencies are prioritizing financial goals that were once achievable but have become more difficult due to inflation and high interest rates.

“Inflation has taken away the American dream for millennials and younger generations,” he said. They tend to prioritize practical financial goals like buying a home or traveling instead of spending big on high-end luxury goods.