PUBLISHER: SkyQuest | PRODUCT CODE: 1286015
PUBLISHER: SkyQuest | PRODUCT CODE: 1286015
Non-Fungible Tokens (NFTs) Market size was valued at USD 16 billion in 2021 and is poised to grow from USD 21.39 billion in 2022 to USD 212 billion by 2030, growing at a CAGR of 33.7% in the forecast period (2023-2030).
Blockchain-based cryptographic assets known as non-fungible tokens have distinctive identifying codes and metadata that set them apart from one another. They cannot be exchanged or traded for bitcoins on an equal basis. In contrast, fungible tokens, like cryptocurrencies, are interchangeable and can be used as a medium for business transactions because they are all identical to one another.
In 2021, NFTs-or non-fungible tokens-became a hot topic in the world of digital trading cards, digital art, images of animals, music, and online gaming. The world's most expensive NFT was Beeple's cryptographic work, "First 5000 Days," was sold for USD 69 million in March 2021. This purchase caused "NFT fever" to spread throughout Asia and the US and began trending on Google. Digital tokens, however, are not brand-new. One of the longest-running NFTs is CryptoKitties, a project that incorporates images of kittens generated at random. Sales began in 2017.
The amount of sales made in the art market using non-fungible tokens (NFTs) varied significantly between April 15, 2021, and April 15, 2022. As of April 15, 2021, 28,400 NFTs have been sold in the art section over the previous 30 days. On the other hand, as of April 15, 2022, 22,600 NFTs had been exchanged during a period of 30 days on the Ethereum blockchain. But by the middle of August 2021, the figure had risen to 109,1000.
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.
Segments covered in this report:
The global non-fungible token (NFT) market segmented by type, application, end-use, and region. Based on the type, the Non-Fungible Token market is bifurcated into physical asset and digital asset. Based on application, the global non-fungible token (NFT) market is segmented as collectibles, art, gaming, utilities, metaverse, sport, and others. Based on end-use, the Non-Fungible Token market is bifurcated into personal and commercial. Based on region, the global Non-Fungible Token market is categorized into North America, Europe, Asia-Pacific, South America, and MEA.
Global non-fungible token (NFT) market to be driven by rising demand for digital artworks: NFT has greatly increased its use in digital art applications all around the world because to social media and other online channels. Additionally, NFT reduces the need for consumers to physically visit a gallery by providing easy access to the art world via digital platforms. Through online markets, the tokens can be used to sell artwork directly. shortening the buying cycle as a result.
Market uncertainty for non-fungible tokens (NFT) worldwide: The scarcity, originality, viewpoint of owners and buyers, as well as the accessibility of distribution methods, all have a significant impact on the value of NFTs. As a result, it is quite challenging for a new seller to foresee the next purchasers of an NFT or the potential factors influencing their purchase. New investors may find it challenging to predict future trends in NFT pricing because the market is still in its early stages. An abrupt change in NFT can cause the owner to suffer a significant loss. In truth, NFT owners may occasionally encounter a number of difficulties while trying to sell their artwork or collectibles, or they may fail to sell their items altogether owing to a lack of interest or low demand.
The majority of first-time customers are either ignorant of or unaware of the significant and hidden petrol fees associated with NFT transactions. The Ethereum blockchain is used to build many NFTs, and ERC-721, ERC-20, ERC-1155, and other token standards are used to build smart contracts. The non-fungible token (NFT) market is hampered by high gas fees on the Ethereum blockchain, for example, which employs the proof of work technique to determine its value.
Nearly 2.5 million crypto wallets, up from just 89,000 the year before, were held or traded NFTs in 2021. The worldwide non-fungible token (NFT) market saw a rise in buyers from 75,000 to 2.3 million during the same time period. A survey found that investors made $5.4 billion in profits from NFT sales last year, indicating that people's ability to profit from NFTs has improved. According to SkyQuest, over 470 wallets made over $1 million. The most common NFT category was collectibles, with $8.4 billion in sales. Sales of $5.2 billion were accounted for by gaming NFTs like Axie Infinity. Later in the year, with $514 million in sales of digital land and other developments in the area, the focus switched to the so-called metaverse.
Investors are borrowing money for new potential investments and emergencies by pledging their NFTs and NFT collections as security. In 2021, a large number of DeFi (decentralised finance) platforms were created to make it easier to use NFTs as loan collateral. For instance, the DeFi platform Arcade provides loans backed by NFTs. The money is transferred into an escrow account managed by an Arcade smart contract after the lender and borrower have concurred to the terms. Till the loan is fully repaid or defaults, the NFT(s) are locked and irrevocable.