NFT Market Review for 2021: Trading Volume Increases to $23 Billion.
Non-fungible tokens, or NFTs, are used to monitor ownership of assets such as artworks and collection objects, whether virtual or physical. NFTs have existed for a long period, possibly since the blockchain’s birth.
NFT trading volume increased to $23 billion in 2021, according to DappRadar data on Forbes, and this figure is anticipated to rise even more in the future year.
The number of unique active wallets that interact with NFTs on a daily basis has climbed from 5,000 at the start of the year to over 140,000 at the conclusion, according to the Lithuania-based blockchain analytics business.
NFTs had a fantastic year
To review NFT’s in 2021, the active engagement of celebrities, well-known figures, and well-known brands, the growth of GameFi, and the investment of small to medium-sized enterprises as well as high-profile companies are all contributing to the surge of NFTs this year.
Before, celebrities had few alternatives for monetizing their digital assets. An ICO was one of the few choices available to them if they wanted to create income. Additionally, they could invest in promising start-ups.
They may now cash in on their notoriety owing to NFTs, which allow them to release digital collections of everything, including artwork, songs, trading cards, and products. These tokenized collections will subsequently be traded on the open market between fans and investors.
NFTs Attract Celebrities and Fans
Paris Hilton, Eminem, Naomi Osaka, Snoop Dogg, and Grimes are among the celebrities that have jumped on the NFT bandwagon in 2021.
Celebrities ranging from artists and athletes to actors and supermodels are mining and auctioning off a variety of assets, and blockchain-based commodities have attracted the interest of many digitally aware consumers. Through NFT, these artists may connect with fans in the digital realm, resulting in new revenue streams.
NFTs are being embraced by athletes as well as performers in the entertainment world and also Instagram.
Take, for example, NBA Top Shot, the basketball card trading game that made Dapper Labs a multibillion-dollar corporation. Top Shot is a marketplace where NBA fans can buy, sell, and exchange highlighted, legendary video content.
This formula is used in a number of other sports, including baseball, football, and motor racing, to name a few.
What can we expect from NFTs in 2022?
Aside from that, ONE Championship, Asia’s largest mixed martial arts (MMA) organization, recently revealed that the Theta platform will host a marketplace.
It will provide NFTs with special perks in the real world in 2022, such as backstage passes, ring seating, and other once-in-a-lifetime opportunities.
Many in the fashion business, as well as high-net-worth individuals, are interested in the blockchain game.
Kering, Gucci, D&G, and LVMH have all declared plans to enter the lucrative virtual reality (VR) sector with collections of virtual wearables and goods.
In terms of the gaming industry for NFTs in 2022, GameFi (blockchain-based games) has quickly amassed a significant and devoted following of supporters. Play-to-earn has risen to prominence as a new trend and the most effective use of NFTs.
The buzz surrounding GameFi piqued the interest of venture capitalists, who invested an estimated $4 billion in the category.
The excitement is coming down… It’s very likely that 90-95 percent (of projects) will fail at some time.DappRadar’s head of finance and research, Modesta Masoit
It’s Only the Beginning for META
The unveiling of Facebook’s rebranding is the tipping point that encourages other businesses to enter the budding sector of NFTs in 2022.
While many believe that the NFTs’ slump would be short-lived, the NFTs have left a mark for the upcoming craze – Metaverse.
The Metaverse is supposed to be the next generation of the internet. Although it may appear to be a far-fetched vision of the future, internet titans including as Mark Zuckerberg of Meta are investing big on it.
With Facebook, Zuckerberg was a huge success. If he can repeat his success with Meta, it’ll be understandable – but it won’t be the only game in town.