It was a record year for TVN – non-fungible tokens – as the world market value of these investments reached $ 23 billion, according to blockchain analytics firm DappRadar. The term was even named by Collins’ Word of the Year for 2021, and now the value of NFTs exceeds the market capitalization of some publicly traded companies.
One of their first forays into mainstream NFT consciousness came when auction house Christie’s sold Beeple’s NFT for $ 69.34 million in March. Other top NFT sales in 2021 include the Bored Ape Yacht Club (BAYC) for $ 26.2 million. Since then, NFTs have appeared not only in the art world, but everywhere else, offered by luxury brands like Gucci among others.
And in the week ending Dec. 17, Nike, Adidas and Pepsi – all of whom have joined the NFT movement – collectively managed to secure more than $ 220 million in NFT trading volume, according to DappRadar.
NFT trading climbed to $ 10.7 billion in the third quarter of 2021, an increase of more than 700% from the previous quarter, according to DappRadar, figures that do not surprise many crypto experts.
Jack McDonald, CEO of PolySign, Inc. and Standard Custody and Trust Co., told GOBankingRates that NFTs are the first wave of a digital transformation, and often the first waves of such transformations are easily dismissed as fads, as prices tend to fluctuate wildly.
âThink about Bitcoin. In its early days, early users touted its revolutionary technology while the “standards” – that is, those who did not buy Bitcoin at the time – stayed on the sidelines as the price fluctuated wildly and was even almost fell to zero at least once. And now look at the wealth of these early Bitcoin users, âsaid McDonald, adding that NFTs are becoming more and more valuable to the general public for several reasons.
âAlready, for example, celebrities, athletes and mega brands have quickly adopted this technology and are using it to interact with their customers,â he said. âAnother factor behind the growth of NFT is the fact that younger generations prefer to keep their assets digitally. Thus, when it comes to art, that of the digital type will increasingly be seen as more useful for an increasing number of young people with disposable income and, as a result, the prices of this digital art secured by NFT will increase. . Moreover, since NFTs are so useful in proving ownership and securing intellectual property rights, it is almost a given that more and more artists, artists and influencers will generally turn to this technology for monetize their creativity. So in short, expect wild swings in the price of NFTs, but also expect a meteoric long-term and overall growth trajectory that will enrich many of these early adopters of NFT.
NFTs are entering traditional trades
To put it in perspective, Fortune has listed some of the blue chip companies that have seen NFTs exceed their market caps this year, they include (all data as of December 17, 2021): CarMax, which has a market cap of 22, $ 36 billion; Carnival, which has a market cap of $ 21.5 billion; Ulta, which has a market cap of $ 21 billion; MGM Resorts, which has a market capitalization of $ 19.63 billion; Nissan, which has a market capitalization of $ 19.35 billion; and Domino’s Pizza, which has a market capitalization of $ 19.33 billion.
Dmitry Mishunin, Founder and CEO of HashEx, an auditing and consulting firm for blockchain-based projects, told GOBankingRates that the popularity of NFTs is likely to continue to grow. Mishunin suggests that NFTs will increasingly attract the attention of the general public as the technology has proven its viability and is applicable to multiple business niches. Their main advantage, he said, is that they cut out the middleman.
âFor example, in the music industry, where the share of revenue reaching artists puzzles a lot of people, NFTs could gain a substantial share of the market as a distribution medium. We’ve already seen Kings of Leon release their album “When You See Yourself” on NFT and music producer 3LAU sell a collection of 33 NFTs for $ 11.7 million. So it is more likely than not that many more will follow, âhe said.
Any form of art – music, painting, literature, etc. – can benefit from it and everything can be transformed into a token directly accessible on a public blockchain, he added.
âNFTs also give artists the freedom to create and manage their own merchandise, and this is already becoming a popular trend,â he said. âOn top of that, NFTs are being adopted as a vector of value in an overwhelming majority of up-and-coming video games like Decentraland and The Sandbox. And if the metaverse game trend continues to grow, there is no realistic chance that the NFT market will collapse, the NFT market still has some issues, but it’s a matter of time before they are. corrected, and users get used to the market.
This sentiment was echoed by the DappRadar report, which notes that âto see increased activity from large companies like Nike, Adidas and Pepsi only shows that the NFT space is far from finished growing. With the potential for mass adoption, the hype for NFTs is growing. Combined with the growing awareness that the metaverse and virtual worlds become, the blockchain industry as a whole will soon see the wave of mainstream interest.
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This article originally appeared on GOBankingRates.com: NFT exchanges in 2021 to exceed market caps of Nissan and Domino’s Pizza