PUBLISHER: DataM Intelligence | PRODUCT CODE: 1176613
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1176613
The global non-fungible tokens market reached US$ XX million in 2022 and is expected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of 37.70% during the forecast period (2023-2030).
Cryptocurrencies are fungible, i.e., they can be sold or swapped for one another. NFTs change the crypto model by making each token unique and irreplaceable, making it difficult to compare one non-fungible token to another. Tokens are digital representations of assets referred to as digital ids since each token has a unique, non-transferable identity that distinguishes it from other tokens.
Non-fungible tokens (NFTs) are blockchain-based cryptographic assets having identification number codes and metadata that separate them from one another. They cannot be traded or swapped at par with cryptocurrencies. It contrasts with fungible tokens, such as cryptocurrencies, which are identical to one another and can thus be used as a medium for economic transactions.
Non-fungible Tokens are easily exchangeable and individually distinct digital assets maintained on certain blockchains, primarily Ethereum, Matic, Flow, Wax, etc. NFTs not only exist in a digital domain but may also represent any form of a physical asset, operating as a kind of "digital twin" to anything existing in the real world and enabling physical possession, ownership and exchange within digital marketplaces.
Collectibles such as digital artwork, sports cards and rarities dominate the market for NFTs. NBA Top Shot, a location to collect non-fungible tokenized NBA moments in digital card form, is perhaps the most touted space. Some of the cards have fetched millions of dollars at auction. True ownership is one of the important defining components of any NFT. As digital economies continue to develop, there is a strong possibility that NFT may play a significant role in bringing the digital and physical worlds closer.
The growing influence of celebrities in fueling the momentum of NFT adoption, transforming the gaming industry and the slow but steady rise in demand for digital artworks are the primary reasons propelling the NFT market. However, concerns over copyright protection may stifle market growth.
Digital art is the primary engine of the NFT market's expansion. NFTs aid digital artists in securing ownership of their work. They can make more money with NFTs since they are paid a royalty each time the NFT is exchanged after the original sale. The market for NFT memorabilia will grow significantly as fan interaction grows. For example, the NBA's Top Shoot blockchain product featuring LeBron James sold for US$200,000.
The Metaverse, virtual real estate and trading will grow significantly during the projection time. Gaming industries are developing novel advanced games such as Strategy Role-Playing Gaming. The player can create a game character and utilize NFT to obtain ownership of the generated character, which can then be sold.
One of the key reasons for the exponential surge in demand for NFTs is that NFTs have expanded their range beyond music, films and sports to include other streams such as Metaverse and, in particular, gaming. Enjin was one of the first prominent gaming firms to integrate blockchain technology into its infrastructure, releasing ENJ, a gaming cryptocurrency officially registered in the system for use in Japan. Furthermore, Play-to-Earn (P2E) allows users to purchase, sell and trade items earned in-game. For example, games like Axie Infinity and Splinterlands allow users to convert rare in-game assets into NFT and the buying & selling of the gaming-related asset transactions add up.
Splinterlands alone generated approximately 4 million transactions per day on August 7, 8 and 9, 2021, according to DappRadar statistics, whereas the Ethereum network created an average of 1.2 million transactions per day. By transforming in-game assets into NFTs, gamers can gain cash from them. According to Forbes, Axie Infinity spiked in user growth in the Philippines when it provided gamers with another source of income during the pandemic. As a result, the gaming sector, particularly the play-to-earn blockchain gaming model, has emerged as a massive growth prospect for NFT.
Currently, the NFT market lacks a specialized legal structure and laws to confirm the genuine ownership of an NFT and the related copyright evidence. As a result original works such as photos, photographs, music pieces and so on are at risk of being copied.
Such replicated assets can be easily personalized and disseminated online without the creator's permission. It is limiting the baseline of the NFT market, viz. NFTs are helpful for digital artists since they provide total ownership to the original producers and allow them to make money from their work.
Although NFT is a relatively esoteric topic with many theories, COVID-19 has accelerated the use of NFT technology and many other established markets, particularly NFT connected to art. Because art galleries and other NFT-related assets were shuttered due to the lockdown at the start of the pandemic, art vendors and collectors were compelled to use the internet arena. Because of global lockdowns caused by the COVID-19 epidemic, populations have become more sedentary.
The population of all ages and origins has had to seek alternatives to the social connection that captivity denied them. As a result, these users joined various online Metaverses platforms to increase social interaction and gain exposure for NFTs. For example, AxieInfinity, a blockchain-based digital pet universe, has attracted thousands of newbies to blockchain technology from impoverished countries seeking fresh income streams during the COVID pandemic. According to NonFungible.com, the NFT market rose 299 percent in 2020 compared to 2019.
By end-user, the non-fungible token market is segmented into media & entertainment, online gaming & collectibles and others.
NFTs have the potential to alter the way films are generated, produced and distributed in the media and entertainment sector, democratizing this monopolistic industry in the process. To demonstrate the future of NFTs around the world, the NFT community Arabian Camels is producing Antara, a US$50 million Hollywood blockbuster. NFT is especially beneficial for aspiring filmmakers and artists underrepresented in the industry. NFTs present a unique chance for huge production and elite film franchises with millions of followers to strengthen their following in the Metaverse.
Several studios, notably Disney and Lionsgate, are already developing their own NFT marketplace. Incorporating NFTs into the entertainment business can allow users to engage actively in all film production and dissemination stages. NFTs will enable viewers and artists to engage beyond the screen, propelling the industry to previously unfathomable heights.
Various businesses in Asia Pacific are developing with NFT markets, such as Animoca Brands, a Hong Kong-based blockchain gaming company now valued at US$5 billion. In addition to NFTs for its games, Animoca is a major investor in Axie Infinity. Though Chinese authorities are wary about NFT adoption, the Chinese government will pursue a better business model for NFT development than the rest of the world to avoid scams and fraud. NFTs such as Bored Apes and Phanta Bear are popular in China.
NFT Asia is a Discord community for Asian NFT artists, with over 2,700 followers and over 9,000 followers on Twitter. The Play-To-Earn 'Axie Infinity' game by Vietnamese business Sky Mavis saw rapid growth in Asia-Pacific. When the epidemic struck the Philippines, nearly 4.5 million Filipinos lost their employment and Axie Infinity became a source of income for many of them. According to the gaming analytics portal ActivePlayer.IO, the number of daily active Axie players climbed from over 10,000 in January 2020 to over two million in 2021.
The market for non-fungible tokens is competitive, with several major and medium-sized firms present. Mergers and acquisitions, regional growth, increased manufacturing capacity, partnerships and collaborations are all important approaches for market participants to stay competitive. Introducing more advanced technological solutions that allow players to create new and efficient non-fungible tokens will propel the company forward.
Tapinator Inc., a producer and publisher of category-leading mobile games, stated in March 2021 that it is working on NFT500, a subscription casting service and collection platform centered on blue-chip NFTs. "Casting" refers to presenting digital art on a physical display as NFTs.
Hall of Fame Resort & Entertainment Company launched its first non-fungible token offering in April 2021, collaborating with Dolphin Entertainment, Inc.
Major global non-fungible token market companies include Cloudflare, Gemini Trust, OpenSea, Semidot Infotech, Dapper Labs, The Sandbox, Axie Infinity, Art Blocks, Larva Labs and Onchain Labs.
The global non-fungible tokens market report would provide access to an approx. 53 market data table, 42 figures and 201 pages.
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