New study shows enormous success of NFTs

300% annual growth: New study shows enormous success of NFTs (non-fungible tokens)

  • The NFT sector has seen 299% growth over the last year.
  • Active wallets transacting NFTs grew by 97%.
  • Big brands like Nike, Louis Vuitton and Warner Music, are experimenting with NFTs.

Last year, the total value of transactions in the non-fungible token (NFT) space grew 299% year-on-year, reaching over $250 million.

In a study conducted jointly by and foresight firm L’Atelier BNP Paribas, it was concluded that NFTs will be a leading emerging asset class and a Bitcoin Era key driver of the virtual economy in 2021.

This market niche is showing solid, consistent growth, with the total number of active wallets transacting NFTs increasing by 97% to 222,179 in 2020. For reference, the number was 112,731 in 2019.

„The number of buyers and sellers increased from 44,644 to 74,529 (+66%), and from 25,264 to 31,504 (+24%), respectively. The number of active wallets accelerated throughout 2020, pointing to even stronger growth in 2021: overall growth in Q4 was double that of Q3 and three times that of Q2.“

Profits for NFT traders also increased, with some traders able to generate annual profits of more than $100,000

Big names and leading companies around the world – such as Nike, Louis Vuitton and Warner Music, to name a few – are also experimenting with NFTs by developing online collectibles and games.

Just recently, tech giant Microsoft collaborated with gaming-based blockchain platform Enjin to launch customisable NFTs. The tokens will be compatible and transferable with the sandbox adventure video game Minecraft.

Billionaire Mark Cuban also wants a piece of this digital pie. He has made his first set of NFTs available for purchase on Rarible for fans or haters alike.

Titled „The RollUp 2021“, the NFT artwork features a GIF of Cuban showing off his outstanding dance moves in a Dallas Mavericks tank top.

A number of NFT projects were showcased at the „ETHDenver Hackathon“ event last week. The hackathon brings together the Ethereum community and allows developers to showcase new projects, some of which end up integrating into the Ethereum (Go to Buy Ethereum with Paypal Guide) ecosystem.