PUBLISHER: SkyQuest Technology Consulting Pvt. Ltd. | PRODUCT CODE: 1120544
PUBLISHER: SkyQuest Technology Consulting Pvt. Ltd. | PRODUCT CODE: 1120544
The Global non-fungible token (NFT) market was valued at USD 15.70 billion in 2021, and the market size is estimated to reach USD 122.43 billion by 2028, at a CAGR of 34.10% over the forecast period 2022-2028.
Non-fungible tokens are blockchain-based cryptographic assets with unique identification codes and metadata that separate them from one another. They cannot be traded or swapped at parity with cryptocurrencies. This is in contrast to 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, or NFTs, were a hot digital topic in 2021, spanning trading cards, digital artwork, animal images, music, and online gaming. Beeple's crypto art "First 5000 Days" sold for USD 69 million in March 2021, making it the world's most expensive NFT. This transaction generated "NFT fever" and began trending on Google in Asia and the United States. Digital tokens, on the other hand, are not new. CryptoKitties, a project that incorporates randomly generated kitten photographs, is one of the oldest NFTs, with sales dating back to 2017.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global Non-Fungible Tokens (NFTs) market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined by using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
The Global Non-Fungible Tokens (NFTs) market is segmented by type, by application and by end-use. Based on type, the market is categorized into Physical Asset, Digital Asset. Based on application, the market is categorized into Collectibles, Art, Gaming, Utilities, Metaverse, Sport, Others. Based on end-use, the market is categorized into Personal, Commercial. By region, the global Non-Fungible Tokens (NFTs) market is categorized into North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
The global non-fungible token (NFT) industry will be driven by rising demand for digital artworks: Through social media and other digital platforms, NFT has garnered enormous appeal in digital creative applications all around the world. Furthermore, NFT makes the art world accessible to customers via a digital platform, removing the necessity for a physical visit to a gallery. The tokens can be used to directly sell artworks through virtual markets. As a result, the purchasing cycle is shortened.
NFT transactions are associated with significant and hidden gas fees, which the majority of first-time users are either unaware of or uninformed of. Many NFTs are based on the Ethereum blockchain, and smart contracts are written utilizing token standards such as ERC-721, ERC-20, ERC-1155, and others. For example, the Ethereum blockchain employs the proof of work mechanism to determine its value, resulting in hefty gas fees that stymie the non-fungible token (NFT) market.
Investors are using their NFTs and NFT collections as collateral to secure loans for new potential investments and emergency situations. In 2021, numerous DeFi (decentralized finance) platforms were built to ease the use of NFTs as collateral for loans. For example, Arcade is a DeFi platform that provides loans secured by NFTs. When both the lender and the borrower agree on the terms, the monies are placed in an escrow account managed by an Arcade smart contract. Until the loan is paid in full or defaulted, the NFT(s) remain locked and irrevocable.