Global NFT market snapshot 2021-2025
Introduction
An NFT is a digital asset that symbolizes real-world things such as art, music, in-game goods, and films. They are purchased and traded online, usually using cryptocurrency, and are typically encoded with the same underlying software as many cryptos.
Although the fact that they have been present since 2014, NFTs have gained popularity in recent years as a popular means to purchase and trade digital artwork.
NFT Market Overview
In 2021, the global non-fungible token market was valued at $25 billion and is expected to grow and reach around $80 billion by 2025, growing at a CAGR of 33.7% during the period 2021-2025.
The digital and physical worlds are merging, with non-fungible tokens (NFTs) allowing businesses to expand their reach into digitally-enabled experiential tie-ins. Increasing demand for digital artworks is expected to drive market revenue expansion during the projected period. Artists prefer non-fungible tokens because they ensure the validity and uniqueness of blockchain representations of creative works.
NFT Market Share By Segment
Based on application, the global non-fungible token (NFT) market is categorized into collectibles, art, gaming, utilities, metaverse, sport, and others.
Collectibles are valuable commodities desired and purchased by collectors. In 2021, the collectibles segment accounted for the highest sales share in the worldwide non-fungible token market, accounting for 51% of the total NFT sales, followed by the Game segment (15.4%) and the Art segment (15.1%).
Top NFT Marketplaces
In terms of total volume traded as of March 28, 2022, OpenSea remained at the top of the NFT marketplace with around $23,500 million, followed by LooksRare($18,160 million), Axie Infinity ($4,170 million), and lastly CryptoPunks ($2,660 million).
Monthly Number Of NFT Users
According to the number of unique wallets that purchased or sold an NFT, the third quarter of 2021 was a significant quarter for NFT trade. In August 2021, there were about 569,267 unique NFT wallets purchased or sold.
The number of unique wallets that either bought or sold an NFT asset worldwide was 363,692 in December 2021.
According to Statista, Axie Infinity, a play-to-earn Vietnamese video game that became the most valuable NFT collection in the world in August 2021, was likely to be responsible for most of this growth.
According to DappRadar statistics, gaming has also created significant interest in decentralized finance Defi and dApps, which have climbed to 14% since October 2021.
NFT Money Laundering Market
Money laundering on NFT marketplaces was valued at $1.27 million in Q3 2021 and $1.38 million in Q42021, which was more than the values in Q1 and Q2 of the same year.
According to Chainalysis, the value of cryptocurrency transmitted to NFT markets by illegitimate addresses increased dramatically in the Q3 of 2021, which surpassed $1 million. This value increased further in the Q4 of 2021. The great bulk of this activity originated from scam-associated addresses transferring money to NFT markets to make purchases in both quarters. Significant sums of stolen funds were also transmitted to markets in both quarters.
According to Kim Grauer, Director of Research at Chainalysis said, “Investors should consider picking NFT marketplaces that have protections in place for money laundering and other fraudulent activity. Choosing reputable marketplaces could help strengthen the NFT market overall.”
Market Snapshot
Data Sources: Money Control, Forbes, DappRadar, PR Newswire, CNBC, Chainanalysis
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