In recent years, non-fungible tokens (NFT) have emerged from obscurity to become an essential part of the wider cryptocurrency industry.
Analysts and market participants predict a prosperous future for the market in light of this new reality.
According to a recent MarketsandMarket survey, the NFT market is poised for a 35 percent increase in 2027.
This means that the existing $3 billion market size will reach $13.6 billion by the end of that year based on a compound annual growth rate (CAGR) of 35.0% – if investor interest continues to grow.
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NFT driving forces
The growth of mainstream influencers, gaming communities and the growing demand for digital artworks will continue to drive the global NFT boom for the next five years.
Over the forecast period, the increasing influence of celebrities to fuel the momentum of NFT adoption, transform the gaming industry and the slow but sustained rise in demand for digital artworks is expected to drive the global NFT market.
In addition, the growing applications of NFT in supply chain management, retail and fashion, as well as the efforts of industry titans to make the metaverse a reality, would give NFT market providers a lucrative potential for personalization.
Level playing field
The non-fungible token market provides a level playing field for both buyers and sellers to thrive. It allows both buyers and sellers to benefit significantly 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-Pac countries among major players
Recent data from Google Search Trends indicates that countries in the Asia-Pacific region are leaning towards constant market developments and market launches to provide makers and buyers with equal opportunities in the ecosystem.
Year-over-year, the non-fungible token sector beat the overall crypto market, according to a study by Nansen. The blockchain analytics firm expected the market cap of NFTs to 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 be the biggest contributor to the space expansion.
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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)
Revenue model for the Metaverse
While established companies like OpenSea currently dominate this industry, crypto exchanges like Coinbase and Binance have started offering similar services for exchanging non-fungible tokens in the open market.
The Metaverse is a concept for a virtual world with internet access 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 revenue model for the Metaverse in the coming years.
Featured image CNBC, chart from TradingView.com