Sports NFT market to double to $2.6 billion by 2022
The sports NFT market doubled from $1.3 billion to $2.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 36.3% to reach $41.6 billion by 2032, a report shows study from Market Decipher.
The report states that the shift from physical to digital fueled the sports NFT market. Commenting on the results, Market Decipher analyst Chandradeep Singh said:
“NFTs allow fans to acquire rights to their favorite sports moments by acquiring NFTs of such video moments. Trading cards, already a large market share of the sports memorabilia market, show a rapid shift from physical to digital.”
Physical collectibles can be damaged and lose value over time, unlike digital ones. Tokenized video clips, player accessories and cards are the best collectibles that bring high returns for holders.
Highlights from the report
Based on the data, NFL, Football, Basketball, Baseball, Cricket and Ice Hockey branches are in demand in the NFT sports market.
According to the report, the statue of LeBron, Brett Gardener from the MLB Champions and Jermall Charlo from the Lions Only GOLD ULTIMATE collection are the three most expensive sports NFTs by far.
The statue of LeBron James was photographed during a basketball game in 2020 and sold for $21.6 million, the most expensive so far. Brett Gardener’s and Jermall Charlo’s NFTs are the second and third most expensive NFTs, selling for $21.28 million and $19.1 million, respectively.
Sports NFT Market
The Sports NFT Market brings the popularity of NFTs and sports fanatics together. While this mix is already solid, the NFT market remained more or less intact during the current bear market. Even though the crypto community is experiencing the coldest winter ever, NFT sales increased by 59% while trading volume increased by 553% compared to the second quarter of 2021.
RareMint’s co-founder Brett Calapp recently shared his thoughts on the sports NFT market with CryptoSlate and explained why the sports NFT market is so susceptible to growth.
Current issues
Calapp identified the biggest problems in the traditional collectibles market as high fees and perishability.
Good quality sports collectibles are expensive and hard to come by, even for relatively wealthy buyers. Often the collectibles require minimum buy-ins, which makes it even more difficult for the vast majority of people to invest in them.
Also, these hard-to-find collectibles are in physical form, which makes them prone to decay.
Calapp argues that these issues push younger generations towards innovative solutions such as Sports NFTs. He says:
“Additional challenges such as finding authentic collectibles, asset storage and poor discoverability are causing younger generations to turn to different avenues to support their favorite players and teams.”
GenZ leads the way
Calapp also mentions the high adoption rates of GenZ and argues that they will be the main driving force behind the sports NFT market.
According to an article from Forbes, GenZ has “a high propensity to be more expressive,” which reflects positively on the crypto market. For them, self-expression is the key.
They are also always looking for new platforms to express their unique identities and want to be closer to their hobbies and interests.
