NFT market will double within a year
I’m confident that the booming NFT (non-fungible token) market will more than double in sales in a year as major investors continue to join the market.
Recent examples over the last week include Visa purchasing “CryptoPunk,” one of the thousands of NFT-based digital avatars, for close to $150,000 in Ethereum, and Marvel Entertainment unveiling its first official NFTs in the form of Spider-Man ‘digital statues.’
NFTs are unique digital assets designed to represent ownership of a virtual item, such as artwork, music, a video clip, or tokenised tweet, amongst other representations.
The NFT market reached fresh highs in Q2, totalling $2.5 billion in sales so far this year, around 20 times more than the $13.7 million in the first half of last year.
In addition, as I was quoted as saying to Forbes, International Investment, London Loves Business, Wealth Professional and Bitcoin Insider, amongst others, with mounting interest from key investors like Visa, who recognise that value and the future is digital, demand is set to skyrocket.
As such, as these big hitters get involved, their expertise, capital and pulling power will appeal to other investors – retail and institutional – seeking to enter the market.
Demand will also surge due to a growing number of NFT marketplaces where you can make purchases, as well as more musicians, artists, sports, entertainment, fashion, gaming and retail brands creating digital assets to engage with consumers, clients and fans.
This market is only just beginning. Although there has been a surge in interest this year, I think 2022 will be the breakout year for NFTs and this time next year the volume of NFT sales will have more than doubled.
Although NFTs may still be viewed as a ‘novelty’, it just makes sense that considering how fast the world is becoming digitalised, digital assets will become increasingly valuable.
Moreover, NFTs have demographics on their side. Millennials and Gen Z in particular lead digital lives and its only natural to want to take digital representations of luxury brands, sport, music and art into these worlds. And NFTs allow them to do just that.
Another reason why NFTs aren’t going anywhere is because they are changing business models for the better, especially within creative industries. As an example, musicians and artists can offer enhanced virtual experiences for buyers and collectors, they can prove their works aren’t forgeries and they can include criteria to receive royalties each time their works are re-sold in the future.
NFTs are allowing us to see the convergence of an internet of information with an internet of value, which is attracting substantial investment from multinationals, funds, and venture capital firms, amongst others, into the market.
As such, I can’t see any reason why the soaring growth rate of NFTs will not continue and increase in the future.