NFTs are back in fashion. Contrary to what has been said in the market for some time now, NFTs are not dying. Yes ok the last year has witnessed dizzying movements, up and downin the different segments of this asset market, losing up to 80% of its value even among Blue-Chips (the most expensive and scarce), the total value of NFTs in 2023 is estimated to be around $28 billion to $38 billion.
Securities capable of generating annual revenue of at least USD 1.5 billion, according to the study “NFT Landscape 2023” commissioned by Ripio, a brand in the crypto sector in Latin America, to Dux, a Brazilian startup focused on the Web3 market.
The investigation reveals that The market is expected to grow at a compound annual rate (CAGR) ranging from 18% to 35%. If in 2021 it was worth around USD 11 billion to USD 18 billion and USD 18 to USD 25 billion in 2022, the forecast is that reach USD 60 billion or exceed USD 120 billion between 2026 and 2028. Another trend that can be observed in the study is that, especially from 2023, despite the fact that OpenSea continues to be the largest NFT market, other alternative markets and aggregators of this type of asset, such as Blur or X2Y2, will gain more space. in the coming months, strengthening the market.
Regarding the total number of estimated users, the study highlights that at least 30-40 million wallets have traded NFTs in the last few years alone. Brazil occupies a prominent position in this list, with more than 5 million users (around 2% of the population), appearing as one of the main global NFT markets along with countries such as the United States, China, Canada, India, Indonesia. , Thailand and Vietnam.
“The NFT market is extremely important for a large part of the operations that are carried out with blockchain technology, since they are a type of writing or encrypted record that proves the ownership of a ‘digital asset’ in various segments such as electronic games, movies, music , works of art and even real estate. And it has everything to be increasingly relevant as this technology becomes naturalized and is present in the day-to-day of society as a means and support for various functionalities, and can be used for the most diverse purposes. Ripio is a company focused on developing the cryptographic ecosystem and for us, disclosing this unprecedented research that provides relevant information on the NFT market is essential to continue promoting the importance of these assets.“, expressed Henrique Teixeira, Global Head of New Business at Ripio.
History, recession and new trends
In addition to all aspects related to the future of the NFT market, the “NFT Landscape 2023” is a complete study of the segment carried out in Brazil. It presents a timeline on the history and main milestones of these goods in the world, going through a series of important concepts, fundamentals and definitions to understand their importance, including the main types of application and highlighting the most famous collections and success stories, including Bored Apes Yacht Club (BAYC, 2021), CryptoPunks (2017), Mutant Ape Yacht Club (2021), Otherdeed (Otherside, 2022) and Art Blocks (2020 ), among many others.The study presents some curiosities such as the sales of the most expensive simple and unique NFTs in history, such as the works “The Merge“, by the artist Pak, sold for USD 91.8 million (2021) and “Beeple’s Everydays: The First Beeple’s 5000 Days“, sold for USD 69.3 million (2021).
Another relevant point of the study refers to some reasons that may have caused the market slowdownespecially in 2022. Some events in the macroeconomic segment can be identified as responsible for reinforcing this downward trend, such as the FED interest rate hike, LUNA/TERRA/UST ecosystem collapse, Celsius collapse, and FTX crisis. Factors that led to intense losses and devaluations, including the trading volume of these assets, which fell by more than 70%. The drop in the price of major assets such as Ethereum (ETH), which fell by more than 80% throughout 2022, also contributed to the waning enthusiasm and anticipation around NFTs. And finally, the research highlighted that the NFT market has gone through an unprecedented bullish cycle, so the sector’s downturn in the near future is understandable.
Finally, the “NFT Landscape 2023” indicates the new trends and indicates some of the possible directions for the industry in the short and medium term. Among the main ones are the growing importance and demand for ENS (Ethereum Name Service) domainswhich has become quite noticeable in the web3 scenario, the centralization of the market, a higher correlation between the crypto market and NFTs, and a greater use of these digital assets in the logistics chains of various products and supplies, which are an integral part of practically any business, to make them more transparent, economical and efficient.
For Felipe Barros, Head of Education at DUX, increasing the understanding of the size of the NFT market and the current context of the sector is essential, not only to make better decisions and take advantage of opportunities, but also to consolidate the market itself.
“It is very important that institutions like Ripio provide for the publication and dissemination of studies and reports like this, especially because it is freely accessible material and brings very up-to-date data, not only because this type of research simply does not exist in Portuguese, but also because generates a lot of value for the community and provides more confidence and information to investors“, emphasized the executive.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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