Global Non-Fungible Token (NFT) is booming at a high growth rate mainly due to a rapidly increasing demand for digital arts and adoption of cryptocurrencies by various digital platforms across the world.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the global non-fungible token (NFT) market size was USD 4.36 billion in 2021. Also, BlueWeave forecasts the global NFT market to grow at an impressive CAGR of 23.9% during 2022–2028, reaching a whopping market size of USD 19.57 billion by the end of the forecast period.
Global NFT Market – Recent Technology Advancements
Tapinator Inc., a developer and publisher of category-defining mobile games, has announced the development of NFT500, a subscription casting service and collection platform centered on blue chip NFTs. The term “casting” refers to presenting digital art on a physical display in the form of NFTs. In collaboration with Dolphin Entertainment, Inc., Hall of Fame Resort & Entertainment Company announced its first NFT offering.
Rising Demand for Digital Art to Drive Global NFT Market
One of the major factors driving the NFT market is the growing demand for digital art across the globe. This is because consumers utilize cryptocurrencies to buy digital assets. The money raised by NFT firms also boosts market growth. Paradigm is the leader in receiving major investments, which also included grants from Solana Ventures and Sequoia Capital. The company aims to use the funds to expand its products and services.
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Global NFT Market – By Type
Gaming & Digital Art NFTs are expected to account for the highest number of NFT transactions. In gaming, in-app purchases or virtual currency purchased in free-to-play games could not be withdrawn, re-used, resold, or utilized in other ways across games or platforms until recently. They were, in other words, perishable consumable products. With NFTs, anything purchased in the games becomes the owner’s property. The user’s name will be used to register the asset. Each object is uniquely identified, has a provably limited number of copies, and can be shared among users without the developer’s permission. Better yet, it can be moved outside of the game, sold on the market, or even used in another game, and providing extra utility and gameplay across various games. New inventions are being made as digital art allows more people to become interested in and active in the art world. The artists in this space will continue to experiment and produce work that pushes the current art form’s boundaries. However, there is a disadvantage to typical digital art creation in that products can be reproduced and replicated indefinitely at no expense. To address this flaw, digital art is now stored on the blockchain and converted into a NFT, making it impossible to duplicate. This has provided digital artists with a possibility to profit from their creative work. As a result, it is expected that digital art will hold a significant share in the global NFT market.
Impact of COVID-19 on Global NFT Market
Due to global lockdowns imposed by governments due to the Covid-19 pandemic, people have been compelled to adopt a more sedentary lifestyle. These populations, of all ages and origins, have had to learn new ways to interact socially after being confined for so long. As a result, these users joined a variety of online Metaverse platforms to boost social engagement and gain exposure to NFTs. For example, during a lockdown period, Axis Infinity, a blockchain-based digital pet world, attracted thousands of newbies to the blockchain technology from underdeveloped and developing countries looking for new income streams. According to NonFungible.com, the global NFT market expanded by 299% in 2020 over the previous year.
Americas to dominate the Global NFT Market
In terms of market size, the Americas region is expected to be the highest contributor in the global NFT industry. Despite the lack of strict legislation, accounting norms, and disclosure requirements in the United States, firms are investing in NFTs. After making its first cryptocurrency investment, KPMG Canada’s corporate treasury purchased a piece of digital art from the “World of Women” NFT. The business model is practical and a viable alternative for novice NFT producers to get started, with the OpenSea platform having enormous success in 2021.
Competitive Landscape
North America is the home to major companies such as OpenSea, Larva Labs, Cloudflare, and Dapper Labs. Artists are being motivated to be a part of this burgeoning NFT world by investments and creative digital works, which could be a big contributor to the NFT market growth during the forecast period.
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