The market for non-fungible tokens (NFTs) continues to grow at breakneck speed. New study from data aggregator NonFungible.com takes a look at this fast-growing asset class that powers all kinds of activity, from virtual territory to digital art
A year of all records for NFTs
NonFungible.com , the leading platform for non-fungible token (NFT) data aggregation, released a 140-page report presenting the state of this new and growing market.
Developed with the support of Atelier BNP Paribas, this report analyzes in depth how NFTs are on the way to becoming an emerging asset class for the virtual economy.
In particular, NonFungible.com reports that between 2019 and 2020, the total transaction value of the NFT market almost quadrupled from $ 63 million to over $ 250 million.
At the same time, other metrics show that the activity of this market has increased considerably. For example, the number of active portfolios that interact with NFTs has grown from nearly 113,000 in 2019 to over 222,000 in 2020.
“NFTs traders have also experienced unprecedented financial performance, with profits of up to $ 500,000 in a single year and some of them have been able to generate annual profits in excess of $ 100,000 in 2020 via NFT trading, ”adds NonFungible.com
It’s a fact, NFTs come with a plethora of use cases that have continued to develop in recent years, and more particularly in 2020. Ranging from virtual land, to works of art, to objects of collections and objects in video games, Bitcoin Revolution represent the catalyst for virtual economies .
Besides the rise of NFTs in video games and as works of art, these assets are increasingly adopted by major brands. Last year, many fashion brands launched services related to NFTs, including Nike , New Balance, Louis Vuitton and even Breitling.
Another sector which turns to the world of NFTs, that of sport. Many football clubs already tokenize their players via platforms like Sorare .
So many use cases that led to the explosion of the NFTs market in 2020. But why has the sector grown so rapidly?
How can this growth be explained?
Subject to strong development in 2020, the growth of the NFT market is partly linked to the increase in online activity resulting from the Covid-19 pandemic , the study estimates.
For Dan Kelly, CEO and Co-Founder of NonFungible.com, it is undeniable that the NFT ecosystem is no longer just a speculative industry. The sector reached a new maturity in 2020, becoming a value creation industry .
“We are still in the early days of a young and developing space with new ideas and new projects that emerge every day, as evidenced by the tight-knit communities that have been built around the NFT ecosystem,” says Dan Kelly .
Increasingly, This growth is also a reflection of another reality: users now spend more time and are willing to spend more in purely virtual assets to enjoy spaces,
goods, experiences or services virtual.
“As the boundaries between the virtual and physical worlds increasingly blur, we are witnessing the rapid growth of online virtual economies, each offering a diversity of uses,
investments and business opportunities,” says Nadya Ivanova, Director of Operations at L’Atelier BNP Paribas.
Nadya Ivanova also points out that beyond cryptocurrencies, it is NFTs that drive a large part of economic activity and use cases within virtual platforms. She even estimates that NFTs could by 2030 become a major asset class .
“Investors and brands that want to capitalize on the move to virtual business should start paying close attention to the ever-maturing and growing NFT market,” adds Nadya Ivanova.
All these particularities specific to NFTs will develop further in 2021, and we will undoubtedly accelerate the adoption of these digital assets. Booming, many believe that the NFT industry will follow the craze for decentralized finance in 2020 .