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Wednesday, October 20, 2021

Blockchain-Backed NFT Market Value Grew 299% in 2020

This post was originally published on News.Bitcoin

A report has unveiled figures that confirm the bullish run of non-fungible token markets over the last year. Two analytical firms behind the studies stated that the NFT industry grew by 299% in 2020.

Total Number of Active Wallets Rose by 97%

According to the NFT Report 2020, published by L’Atelier BNP Paribas and Nonfungible.com, the NFT market tripled in size overall last year, and its total value rose to more than $250 million.

The research document stated that the non-fungible token market could be considered the core asset class for the so-called “virtual economy.”

With such figures, both firms forecast mainstream adoption of NFTs in the years ahead.

Among the reasons explaining the market boost are global brands’ interests in NFTs. Fashion and luxury brands such as Nike, Louis Vuitton, Breitling, and sports brands like the NBA and Formula 1 have been actively creating NFT-based consumer goods and services.

Per the total number of active wallets, the study revealed that it grew by 97% over 2020. On the other hand, all NFT transactions’ total value increased from $62,862,687 in 2019 to $250,846,205 in 2020.

Similarly, Nonfungible.com and L’Atelier BNP Paribas pointed out that the number of buyers and sellers rose from 44,644 to 74,529 (+66%), and 25,264 to 31,504 (+24%), respectively.

NFT Market Could Keep Bolstering the Concept of Virtual Economy for Years Ahead

Nadya Ivanova, COO and foresight lead at L’Atelier BNP Paribas, highlighted that as “the boundaries between virtual and physical worlds become ever more blurred, we are seeing the rapid growth of virtual economies online, each offering a diversity of employment, investment, and commercial opportunities.”

She also added:

For all the hype around cryptocurrencies, it is non-fungible tokens that are driving and enabling much of the economic activity and use cases within virtual platforms, and they are likely to become both an important asset class and a foundation for the virtual economy in the next decade. Investors and brands that want to capitalize on the shift to virtual activity should start by paying close attention to the NFT market as it continues to mature and grow.

Per a survey made by Crypto.com in December 2020 with 29,574 of its users, 47% of correspondents had heard of NFT, and among these, 63% had only a basic understanding about it, while 57% of respondents had never used any NFTs.

What do you think about this report on the non-fungible token market? Let us know in the comments section below.

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