Acceptance and adoption of non-fungible tokens (NFT) have been on the rise lately. Research has shown that many industries are fast adopting the metaverse ecosystem and exploring its offerings to better serve their clients.
NFTs which are uniquely designed cryptographic assets can confer ownership of a piece of virtual art, music, or even a real estate property on any individual or organization.
Non-fungible tokens are digital representations of an entity, most times, they are pieces of art, music, real estate, or even a relaxation place like the virtual lounge floated by United States investment bank JPMorgan. Sometimes, the use of NFTs gives artists direct access to their customers or fans and even funders who are interested in their works.
These NFTs are uniquely crafted to create scarcity with the help of smart contracts, in that they cannot be duplicated or proliferated. Even separate NFTs in the same collections are all different from each other. Gradually, NFTs are evolving alongside general blockchain technology.
Unlike other cryptocurrencies like Bitcoin (BTC), NFTs cannot be sold or exchanged at face value because they are never similar. Therefore, they can not be used as a medium of exchange between crypto players. NFTs most times are deployed on the Ethereum (ETH) blockchain.
Global NFT Market Projected to Reach $97.6B in 2028
According to a report which took cognizance of all continents of the world, the market size of non-fungible tokens has spiked greatly.
On a global scale, the present market trend has influenced a forecast of a positive outlook for the digital collectible ecosystem by 2028. From assessment, the global NFT market is projected to reach $97.6 billion by 2028. Interestingly, this is a 31.6% compound annual growth rate (CAGR) from the time of this forecast.
Notably, North America contributed the largest revenue to the global value of the NFT market. This goes to show that the rate of their adoption in that territory is increasing.
The market growth factor of NFTs indicates that these digital assets allow the artist to own the intellectual property over the work while offering authenticity at the same time. Also, is the generation of economic prospects for the content creator. Generally, the fear of digital replica generation is still deep in the hearts of many NFT creators.
Meanwhile, the key market players who contributed to this analysis are Cloudflare, Gemini Trust C, Ozone Networks, Dapper Labs, Semidot Infotech, and The Sandbox.