1.2) NFT Market Structure
The Non-Fungible Tokens Market size is expected to grow from USD 3.0 billion in 2022 to USD 13.6 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 35.0% from 2022 to 2027 (reference: https://www.marketsandmarkets.com).
However, it can’t be ignored that the dropoff since June has been swift and harsh – weekly NFT sales and trading volume both dropped by 50% in the last weeks of the first half of the year. Sentiment around NFTs has dropped along with valuations and activity, with media outlets deriding the sector as a typical hype cycle and many predicting that they will never return.
Data from Crypto Slam shows that the first semester of 2022 ended with a total weekly NFT sales volume of $56 million, roughly the same as January 2021 before NFT mania really took off. However, this masks the fact that NFT trading volume only tailed off in June after a surprisingly resilient first semester.
The major factors fueling the NFT market include the increasing influence of celebrities to fuel the momentum of NFT adoption, revolutionizing the gaming industry, and the slow but continuing rise in demand for digital artworks. Moreover, increasing use cases of NFT in supply chain management, retail, and fashion, efforts of industry giants toward making Metaverse a reality, and personalization of NFT would provide lucrative opportunities for NFT vendors.
This enables the ground floor for development space to come up with innovative initiatives for evolving the NFT technology into real-world solutions.
Last updated
