In recent years, non-fungible tokens (NFTs) have risen from obscurity to become an essential part of the broader cryptocurrency industry.
Analysts and market participants have predicted a prosperous future for the market in light of this new reality.
According to a recent study by MarketsandMarket, the NFT market is poised to grow 35% by 2027.
This means that the current market size of $3 billion will reach $13.6 billion by the end of this year based on a compound annual growth rate (CAGR) of 35.0% – if interest investors continues to grow.
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NFT Driving Forces
The growth of mainstream influencers, gaming communities, and growing demand for digital artwork will continue to drive the global NFT boom over the next five years.
During the forecast period, the growing influence of celebrities to fuel the momentum of NFT adoption, transforming the gaming industry, and the slow but persistent increase in demand for digital artworks are expected to drive the global NFT market.
Additionally, the growing applications of NFT in supply chain management, retail and fashion, along with the efforts of industry titans to make the metaverse a reality, would give vendors in the NFT market a lucrative potential for personalization.
Level playing field
The non-fungible token market provides a level playing field for buyers and sellers to flourish. With this, both buyers and sellers can reap substantial benefits from it in many ways.
Another element that has contributed to the success of NFTs in China and other Asian countries is the resistance to cryptocurrencies.
Compared to other Asian countries, China has struggled to establish a legal framework for cryptocurrencies due to the government’s preference for digital yuan ambitions.
Crypto total market cap at $1.59 trillion on the weekend chart | Source: TradingView.com
Asia-Pacific countries among big players
Recent data from Google Search Trends indicates that countries in the Asia-Pacific region are trending towards constant market developments and market launches to provide creators and buyers with equal opportunities in the ecosystem.
Year-to-date, the non-fungible token sector has beaten the overall crypto market, according to research by Nansen. The blockchain analytics firm predicted that the market capitalization of NFTs could reach $80 billion by 2025.
NFT marketplaces – platforms that allow investors to buy and sell digital artworks and other related materials – are currently expected to contribute the most to the expansion of the space.
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Industry leaders are hopeful that NFTs will be the way the Metaverse makes money in the next few years. (Image credit: Search Engine Journal)
Metaverse revenue model
While established companies such as OpenSea currently dominate this industry, crypto exchanges such as Coinbase and Binance have started offering comparable services for trading non-fungible tokens on the open market.
The Metaverse is a concept for an Internet-enabled virtual world in which users interact with digital assets using Augmented Reality (AR), Virtual Reality (VR) and Extended Reality (ER) (XR), and the emergence of blockchain technology is accelerating this development.
Industry experts are optimistic that NFTs will be the metaverse’s revenue model in the coming years.
Featured image CNBC, chart from TradingView.com