Global Non-Fungible Tokens Market Report 2023: Increasing Demand for Digital Artworks Drives Growth - ResearchAndMarkets.com
Based on the type, the Non-Fungible Token market is bifurcated into physical asset and digital asset.
The "Global Non-Fungible Tokens Market Size, Share, Growth Analysis, By Type, By Application, By End-Use - Industry Forecast 2023-2030" report has been added to ResearchAndMarkets.com's offering.
The global 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).
Companies Mentioned
- OpenSea (US)
- Axie Infinity
- NBA Top Shot
- Binance NFT
- CryptoPunks
- SuperRare
- Rarible
- The Sandbox
- Art Blocks
- Decentraland
- Nifty Gateway
- Sorare
- Terra Virtua
- Foundation
- Async Art
- WAX
- Gala Games
- Mythical Games
- Animoca Brands
- Enjin
Non-fungible tokens are cryptographic assets based on blockchains that have distinctive metadata and identifying codes that set them apart from one another. They are not capable of parity trading or swapping with cryptocurrencies. This contrasts with fungible tokens, like cryptocurrencies, which are interchangeable and can therefore be utilised as a medium for business transactions.
Trading cards, digital art, images of animals, music, and online gaming are all examples of NFTs, or non-fungible tokens, which became a hot issue in 2021. The world's most expensive NFT, "First 5000 Days," by Beeple, sold for USD 69 million in March 2021.
This transaction launched a "NFT fever" that spread across Asia and the US and became a top search topic. But electronic tokens are nothing new. One of the oldest NFTs, with sales going back to 2017, is CryptoKitties, a project that incorporates randomly produced kitten images.
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.
Driver
Global market for non-fungible tokens (NFT) will be driven by increasing demand for digital artworks: Through social media and other online channels, NFT has greatly increased in popularity in digital creative applications all around the world.
Additionally, NFT reduces the necessity for customers to physically visit a gallery by making the art world easily accessible to them through digital platforms. Through online marketplaces, the tokens can be used to directly sell works of art. decreasing the length of the buying cycle.
Restraint
Uncertainty in the market for non-fungible tokens (NFT) worldwide: The scarcity, distinctiveness, owner and buyer perspectives, as well as the availability of distribution channels, all have a significant impact on the value of NFTs. Therefore, it is quite challenging for a new seller to guess who the next purchasers of an NFT will be or what their potential driving forces may be. It is challenging for new investors to predict future trends in NFT pricing because the market is still in its early stages.
An owner may suffer a significant loss as a result of an abrupt change in NFT. In actuality, NFT owners occasionally run into a number of difficulties while trying to sell their artwork or collectibles, or they may simply be unable to sell them at all due to a lack of interest or low demand.
Most new users are either unaware of or ignorant of the significant and concealed petrol expenses associated with NFT transactions. The Ethereum blockchain is used to build many NFTs, while additional token standards like ERC-721, ERC-20, and ERC-1155 are used to build smart contracts. Because the Ethereum blockchain, for example, determines its value using the proof-of-work algorithm, the market for non-fungible tokens (NFTs) is hampered by high petrol costs.
Market Trends
Nearly 2.5 million cryptocurrency wallets were holding or trading NFTs in 2021, compared to just 89,000 the year before. In the same time frame, the worldwide non-fungible token (NFT) market saw an increase in buyers from 75,000 to 2.3 million.
A survey found that people were better able to profit from NFT sales, with investors making $5.4 billion in gains from NFT sales in the previous year. Over 470 wallets made more than $1 million, according to the publisher. Collectibles were the most common NFT category, with $8.4 billion in sales. $5.2 billion in sales were attributable to gaming NFTs like Axie Infinity. With sales of digital land and other initiatives totaling $514 million later in the year, the focus switched to the so-called metaverse.
Investors are borrowing money for urgent situations and new potential investments while utilising their collections of NFTs as security. DeFi (decentralised finance) platforms that enable the use of NFTs as loan collateral were widely created in 2021. As an illustration, Arcade is a DeFi platform that provides loans secured by NFTs.
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