BASINGSTOKE, England–(BUSINESS WIRE)–A new study from Juniper Research has found that the global number of NFT (Non-fungible Token) transactions will increase from 24 million in 2022 to 40 million by 2027. This is based on our medium adoption scenario, with brands which leverages metaverse to boost digital growth. It warned that while NFTs present a new channel for growth, providers need to be aware of the risks of operating in an unregulated environment of fraudulent activities and fraud.
An NFT is a unique token that exists on the blockchain, meaning it cannot be replicated. This unique token can represent real-world objects such as artwork or music, with the ability to be traded with a transparent transaction history.
Major concerns regarding environmental impact and fraud
The report emphasizes that suppliers participating in the NFT space may risk brand damage by association, due to the role NFTs have played in illegal activities, such as money laundering, fraud and swindling. Environmental issues were also raised as a major concern, with the current way transactions are facilitated on the blockchain creating massive energy use.
It emphasized the need for regulators to work with industry bodies to standardize processes with reduced environmental impact and built-in consumer protections to enable suppliers to use NFTs as a medium to further engage with consumers.
Metaverse to be a redemptive factor for long-term success of NFTs
The report predicts that metaverse-linked NFTs will be the fastest growing NFT segment over the next 5 years; increasing from 600,000 transactions in 2022 to 9.8 million by 2027. It highlights growing demand for immersive experiences as a driver of metaverse adoption.
To capitalize on this growth, the research encourages consumer-facing businesses to create NFT-based content to meet the changing demands of a younger, tech-savvy demographic, who are more ready to purchase new forms of online and digital content.
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Juniper Research provides research and analysis services to the global high-tech communications sector, offering consulting, analyst reports and industry commentary.
