The NFT Sector is Predicted to Attract About $800 Billion Over the Next 2 Years

Despite the fact that NFTs have been part of the cryptocurrency market since 2014, interest in and acceptance of them has exploded in the last two years. Total NFT trading volume peaked in August 2021 at over $5 billion, ushering in what was dubbed “NFT Summer” for a brief while.

What’s Good About NFT?

The NFT market is likely to grow to over $800 billion in the next two years, according to a Coingecko analysis. According to the report, over 72 percent of the 871 respondents already own NFTs, with more than half of them claiming to have five or more.

The analysis found a demographic balance among investors, with 43.6 percent of NFT investors polled being between the ages of 18 and 30, and 45.2 percent being between the ages of 30 and 50.

While the majority of the NFT market appears to be centered in popular collections such as Bored Ape Yacht Club (BAYC) and CryptoPunks, 35.8% of respondents expressed interest in NFTs connected to games to earn and the metaverse, and 25% indicated they favor NFT art.

“Over the next two years, the metaverse industry is expected to move around $800 billion, with games looking to be the most likely entry point into the NFT market,” the paper states.

“The main incentive for our respondents’ NFT purchases was ‘flip and earn,’ however 2/3 of respondents said they only bought NFTs.

What happened to NFT in 2021?

2021 was undoubtedly a bright moment for bitcoin and cryptocurrencies that took the world by storm. Nevertheless, NFT tokens quickly entered the market and are now considered mainstream.

There is a widespread belief that NFTs are a completely new phenomenon. However, the first type of these tokens to hit the market were “Coloured Coins” in 2012, a bitcoin token that provides additional functionality. Weekly income from NFT sales is $10-20 million. With a total market revenue of $250 million, it is clear that this industry is booming.

This market is gaining huge popularity due to the interest from many people, brands and companies. Because NFTs represent just about everything from the first tweet to artwork. Thus, the position of the NFC today is efficient and stable, with no signs of slowing down.

Statistics Statement

Despite the fact that TeleGeography statistics reveal that there are now over 7.1 billion active mobile devices worldwide, 60 percent of investors still prefer to trade and mine NFTs on a PC. Only 21% of responses are made using mobile devices. The research points out that “this can be related to the simplicity of usage of a PC to browse time mints/NFT trades.”

60 percent of respondents stated they prefer Discord and Twitter for keeping track of new or forthcoming NFT projects. The floor price proved to be crucial in determining the sense of value. The majority of respondents (38.5 percent) were interested in the floor price while examining NFTs before purchasing, whereas just 23 percent and 21.8 percent chose “strong community” and “artistic value/affection,” respectively.

The bulk of market investors, on the other hand, have declared that they are not interested in selling their NFTs. More than half of the respondents said they have a HODL mentality and believe non-fungible tokens would play a major role in games in the future. Despite the excitement, NFTs account for only a small portion of most crypto portfolios, with 70% of respondents saying that they make up between 0 and 25% of their crypto holdings.

More Things to Know

According to the report, Ethereum is still the most popular network for NFTs, with 46.3 percent of respondents using it. Polygon came in second with 13.8 percent, and Solana came in third with 13.5 percent. Coingecko respondents traded 26.4 percent of their NFTs through other smart contract platforms.

The results corroborated OpenSea’s dominance in terms of trading platforms, with the company accounting for 58.7% of all trading activity. Second-placed Solanamart controlled slightly over 10% of the market, while LooksRare controlled less than 4%.

“Importantly, Crypto.com, VEVE Official, and Immutable X are among the most often listed instances in the Others section by respondents, presumably indicating their rising popularity.” LooksRare and X2Y2, on the other hand, despite their hefty reward programs, failed to catch on despite their early success,” according to Coingecko.