The NFT market will reach $2.7 billion
According to data analyzed by BitcoinCasinos.comthe forecast for the long term NFT markets are anything but positive.
In fact, these are estimated to reach a value of 2.7 billion dollars by 2025: less than half of the previous forecast. Below are all the details.
Some predictions about the NFT market
After a positive start to 2023 and several good months, the once flourishing NFT market has faced new challenges and registered weak sales datadisappointing growth forecasts for the coming years.
In fact, while revenues are growing by 80% year-on-year, they remain significantly below forecasts before 2022.
As is well known, the cryptocurrency winter has greatly reduced investor interest in NFTs, with the number and value of sales much lower than the previous year.
In addition, the weak performance of NFTs in recent months has also dampened optimistic prospects for future market growth. We see that NFT markets generated in 2021 810 million dollars in income, according to Statista data.
This figure increased to 890 million dollars last year, despite 2022 being one of the most difficult years in the history of the cryptocurrency market.
In November 2022, Statista’s forecast indicated a remarkable recovery for the entire market, with an estimated value of 3.68 billion dollars in 2023 and beyond 6.2 billion dollars by 2025.
Six months later, however, Statista’s forecasts have been scaled down significantly. In fact, according to the latest data from April, the Non-Fungible Token market is expected to generate around $1.6 billion this year, which is 56% less than the previous forecast.
It is expected to grow by 70% in the next four years, and now 2.75 billion dollars in 2025: a much lower figure than the $6.2 billion previously estimated.
Sellers outpace buyers in markets for non-fungible tokens
According to the data, we see that the estimates for user growth are also much less optimistic.
In November, Statista estimated that the number of people trading in the NFT markets would reach 50.3 million this year and increase to almost 60 million by 2025.
But now these numbers have been reduced to 13.9 million in 2023 and 18.3 million in 2025.
The latest market forecasts were released after troubling data on the number of actives NFT wallets and the total number of buyers and sellers in this market.
In accordance NFTGo data, as of 23 May there were 6,054 sellers and 5,056 buyers in the NFT market.
This data is cause for concern because a large number of sellers indicates an oversupply relative to demand, which could push many NFT holders to reduce prices, leading to further decrease in market value of NFTs.
The total market value of NFTs was approx 7.71 billion dollars at the time of writing, which is a decrease of 42% from the same month last year.
Meanwhile, total NFT sales volume fell 68% year-on-year 9.9 billion dollars.
Investments in large NFT projects lose 95% of their value in Ether
Investments in larger NFT projects, such as e.g Doodles, Invisible Friends, Moonbirds and Goblintownsuffered losses of up to 95% of their value in Ether (ETH).
In addition, the value of high-quality NFT collections, known as blue chipsalso fell by more than 40% on average.
Not only that, data provided by NFTGo shows that the blue-chip index has fallen 7,446 ETHdown from the annual peak of 12,394 ETH reached in July 2022.
But despite this downward trendnot all investors in the NFT sector have been discouraged.
In fact, while some expect further prolonged NFT price declines, other investors believe that now is the right time to take action, anticipating a possible recovery in the future.
