The market of non-fungible tokens (NFTs) is getting bigger and bigger. And if it is up to research company MarketsandMarkets, it will only get bigger in the coming years.
In a report titled “Non-Fungible Tokens Market by Offering (Business Strategy Formulation, NFT Creation, and Management, NFT Platform – Marketplace), End-user (Media and Entertainment, Gaming), Region (Americas, Europe, MEA, APAC) – Global forecast to 2027,” the firm stated that market size could increase significantly in a few years if the interest among investors continues to grow.
According to the research firm, the NFT spaces’ current $3 billion valuation will reach $13.6 billion based on the Compound Annual Growth Rate (CAGR) of 35.0%.
Factors responsible for the growth
According to Prnewswire: “The increasing influence of celebrities to fuel the momentum of NFT adoption, revolutionizing the gaming industry, slow but continuing rise in demand for digital artworks are expected to boost the growth of the NFT market across the globe during the forecast period. Moreover, with increasing use cases of NFT in supply chain management, retail, and fashion, efforts of industry giants toward making metaverse a reality, personalization of NFT would provide lucrative opportunities for NFT market vendors”.
MarketsandMarkets noted that these three factors have helped the sector achieve mainstream status in the last two years, especially as celebrities’ increased adoption of NFTs has boosted its appeal and how to promote them.
According to the research, the market could grow rapidly, especially in Asia. The unique digital tokens are already very popular there: “IN THESE BOOMING TIMES OF NFTS, GOOGLE TRENDS DATA SHOWS THAT COUNTRIES IN ASIA PACIFIC HAVE THE MOST SEARCHES ABOUT NFTS, THEIR TRENDS, DEVELOPMENTS AND INVESTMENTS. CHINA, SINGAPORE AND HONG KONG ARE THE TOP THREE COUNTRIES WITH THE HIGHEST NUMBER OF QUESTIONS RELATED TO NFTS.”
As mentioned by Bitconist :”A further element that has contributed to the success of NFTs in China and other Asian nations is the resistance to cryptocurrencies. Compared to other Asian nations, China has struggled to establish a legal framework for cryptocurrencies due to the government’s preference for digital yuan ambitions.
On the year-to-date basis, the non-fungible token sector beat the overall crypto market, according to a research from Nansen. The blockchain analytics company anticipated that the market capitalization of NFTs might reach $80 billion by 2025.
Today, NFTs are an important part of the marketing campaigns of the largest companies. Crypto exchange FTX recently launched another NFT collection in partnership with the Mercedes-AMG Petronas F1 team.