In five years, where will the NFT market really be?
A study by British market research firm Juniper Research recently analyzed the trajectory of the non-fungible token (NFT) market over the next five years. It has predicted that the number of global NFT transactions will reach the 40 million mark by 2027.
In fact, in a recently published whitepaper titled ‘NFTs – Seizing the Metaverse Opportunity’, Juniper Research also commented on the possible future of NFTs, focusing on Metaverse-related NFTs.
Metaverse shall be the main catalyst for the growth of NFTs
The study suggested that the global number of NFT transactions will increase from 24 million in 2022 to 40 million by 2027. A major reason for this growth will be the increasing use of Metaverse by brands to increase their digital presence.
It also observed that among all NFT segments, Metaverse-linked NFTs will grow the fastest over the next five years. These NFTs will see an increase in transactions from 600,000 in 2022 to 9.8 million by 2027.
The NFT industry gained momentum with the release of the Ethereum-based game CryptoKitties in 2017 where new digital cats could be produced in the form of NFTs. By October 2018, players had bred 1 million cats with a volume of 3.2 million transactions, VentureBeat reported.
This year, Italian haute couture brand Gucci launched its ambitious NFT project, which highlights the next 100 years of the company. Titled ‘The Next 100 Years of Gucci’, the NFT collection manifests the extraordinary leap of faith other industries such as fashion, music, art, etc. are adopting NFTs and the Metaverse for future growth.
NFTs have been introduced in the digital real estate industry also within the Metaverse. Decentraland, Polka City and SuperWorld are some of the many Metaverse platforms where one can buy virtual properties through NFTs. In fact, analysts have suggested that similar blockchain-based smart contracts could also be used for real inheritance and real estate.
Only recently, Meta CEO Mark Zuckerberg posted a photograph on Instagram that will soon be converted to an NFT. He added that the team will expand digital collectibles to 100 more countries on Instagram, with new integrations with Coinbase and Dapper.
As Metaverse moves forward, the use cases will multiply across various sectors such as online dating, virtual dating, gaming, shopping, travel and work collaboration. Growth will be driven by the ease of transport and the connection between digital worlds. In such scenarios, the presence of NFTs would be necessary to establish proof of ownership and a means of transaction.
What others have to say
Different market analysts predict different trajectories regarding the future of the NFT market.
Dublin-based market research firm Research and Markets predicted in April 2022 that the NFT market is poised to grow by $147.24 billion during 2022-2026, at a CAGR of 35.27%.
According to a study by MarketsandMarkets, the global NFT market is expected to grow from $3 billion in 2022 to $13.6 billion by 2027, at a compound annual growth rate (CAGR) of 35.0%. The Asia-Pacific region will grow at the highest CAGR during the forecast period, it added.
Curiously, the Juniper Research study also emphasized the need for B2C companies to market NFTs to a young consumer demographic whose needs are also constantly changing. Regulators must also work with the blockchain industry to standardize processes.
