Non-fungible tokens have seen a record year as their overall market value has topped $23 billion, according to DappRadar, a blockchain analytics firm. NFT value has surpassed the value of some publicly traded companies and has even been named Collins’ Word of the Year for 2021.
The auction house Christie’s sold Beeple’s NFT in March for $69.34 million, which made them one of their first forays into the mainstream consciousness for NFTs. NFT’s other famous sale in 2021 was the $26.2 million sales of Bored Ape Yacht Club (BAYC). The NFT has since spread not only in the art world but everywhere else. Luxury brands like Gucci are among those who offer NFTs.
According to DappRadar, Nike, Adidas, and Pepsi’s combined NFT trading volume were over $220 million for the week ending Dec. 17 2021. According to DappRadar, trading in NFTs in the third quarter of 2021 climbed to $10.7 billion, up 700% from the previous quarter. Crypto experts are not surprised by the results.
In an interview with GOBankingRates, PolySign’s Jack McDonald explained that NFTs are the first wave of a digital transformation and that such kinds of first waves are often dismissed as fads because prices can fluctuate wildly.
Bitcoin is a good example. The earliest adopters of Bitcoin talked about the revolutionary technology, but those who didn’t buy Bitcoin at the time, did not buy because of price fluctuation and it almost even went to zero once. Those early Bitcoin adopters now enjoy great wealth,” McDonald said, adding that non-fungible tokens are becoming more valuable among the general public due to a combination of factors.
Read also: THE CRYPTO MARKET
Celebs, athletes, and mega brands have already embraced this technology and are interacting with customers through it, he said. NFT growth can also be explained by the fact that young generations prefer holding their assets digitally. As such, digital art will be seen more as valuable to a growing number of people with the money to spend, and, therefore, prices will rise for such NFTs.
It’s almost a foregone conclusion that even entertainers, influencers, and artists in general, will turn to NFTs to monetize their creativity since they are such a useful tool for proving ownership and protecting intellectual property rights.
Expect wild price swings on NFTs, but also expect an overall meteoric rise in NFTs over the long run that will enrich many early adopters. It’s not too late to start investing now though, click here to take the step towards making your future a fantasy.
NFTs taking on traditional trades
The following are data as of December 17th, 2021, listing some of the bluechip companies that have seen NFTs surpass their market cap this year: CarMax, Carnival, Ulta, MGM Resorts, Nissan, and Domino’s Pizza. (All data as of December 17th, 2021)
In an interview with GOBankingRates, founder and CEO of HashEx, Dmitry Mishunin told us that the popularity of NFTs is likely to grow. As NFTs have proven their viability and apply to a wide range of business niches, Mishuin suggests the technology will become more mainstream because of their widespread applications.
According to him, their main benefit is that they eliminate the middleman. An NFT could gain a substantial share of the market as a distribution medium in the music industry, where the share of revenue that reaches the artists baffles many people.
Music producer 3LAU sold 33 NFTs for $11.7 million and Kings of Leon released their album ‘When You See Yourself’ on NFTs. Therefore, there is a good likelihood that many more will follow suit,” he said.
We have seen the success NFTs were able to achieve in 2021. With the future looking bright ahead, they could go on to achieve even more success going forward.