The rise of the NFT market has been a trending topic in the digital ecosystem, and Grand View Research finds that the market is expected to be worth up to $211 billion by 2030.
Forecasted to grow within the region of 33.9% CAGR in the next eight years, the growing demand for digital art and content has helped enhance the market since 2014. With the parallel growth of various cryptocurrencies, NFTs have become a popular investment tool for celebrities and wealthy people alike.
Grand View Research details the importance of NFTs and its rise in popularity, particularly highlighting the eligibility for NFT artists and creators to track transactions and receive perpetual royalty benefits each time a transaction of their digital work has been sold.
The research goes on to reveal that the collectibles segment “dominated the market in 2021”, attributing the growth to an increasing demand for collectible art, sport, games and more.
Now more than ever we are seeing companies and sports teams rolling out their own brand of NFTs. This in turn, is expected to contribute to the commercial segment growth. Along with new payment methods being introduced to support NFT transactions, the growth of cryptocurrencies in the UK, Europe and North America will help create new opportunities.
Growing trends within the market detailed in the research emphasised the importance of cryptocurrencies, due to the token currency being the main source to buy NFTs. Within the report, CoinMarketCap highlighted the global capitalisation of cryptocurrency to be $1.76 trillion, equivalent to the world’s 8th largest economy.
Funding has also helped grow the NFT market. Last March, NFT marketplace Magic Eden raised $27 million after grants from Solana Ventures and Sequoia, demonstrating a growing interest from large companies in the NFT market.
Furthermore, the COVID-19 pandemic is believed to have had a positive impact for the market and moving into the forecast period. Grand View Research believes that lockdown restrictions helped people form their own NFT platforms to earn money whilst isolating at home.