Non-fungible Token Industry Overview
The global non-fungible token market size was estimated at USD 26.9 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 34.5% from 2024 to 2030.
non-fungible token (NFTs) are assets that have been tokenized via a blockchain. These unique cryptographic tokens that exist on the blockchain cannot be replicated, and they can represent individual identities, property rights, and more. The rising adoption of cryptocurrencies, growing traction around Web 3.0, metaverse, and decentralized finance, and increasing popularity of non-fungible token marketplaces are contributing to the market’s growth.
Gather more insights about the market drivers, restrains and growth of the Non-fungible Token Market
The rising demand for low-cost digital currency payment systems is driving the adoption of cryptocurrencies. With the rising adoption of cryptocurrencies, investors are looking for ways to invest their cryptocurrencies/assets. NFTs provide such investors a medium for crypto investments as they are secure, and they reduce the chances of fraud since the ownership of the asset is registered on the blockchain. The growing adoption of cryptocurrencies and the need for crypto investments is driving the demand for NFTs, thus contributing to market growth.
The emergence of a public blockchain, along with the development of Web 3.0, has enabled users to take control of their data without involving any third parties. Furthermore, the launch of the metaverse has further accelerated digital investments worldwide. At this juncture, NFTs can act to represent ownership of unique virtual assets and digital identity in Web 3.0 and the metaverse, which bodes well for market's growth.
NFT marketplaces are used for digital identity and verification, where unique digital assets represent a user's identity or specific attributes. The growing scope of NFTs and marketplaces is thus attracting investments from traders. According to the cryptocurrency tracking website, CoinGecko, the total NFT trading volume across marketplaces increased from USD 573 million in November 2022 to USD 1.9 billion in February 2023. Such growth in trading volumes bodes well for market growth.
Despite the rising popularity of NFTs, there are several ways in which acquiring, owning, and disposing of these NFTs could give rise to identity and privacy risks. In metaverse or Web3 space, people create their avatars using NFTs, and when people are identified in the Web3 space based on their avatars, there may arise privacy and safety concerns. However, businesses are already finding solutions, such as the integration of smart contracts with NFTs. Such a solution will help the marketspace overcome its challenges.
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Non-fungible Token Market Segmentation
Grand View Research has segmented the global non-fungible token market on the basis of type, application, end-use, and region:
Non-fungible Token Type Outlook (Revenue, USD Million, 2018 - 2030)
- Physical Asset
- Digital Asset
Non-fungible Token Application Outlook (Revenue, USD Million, 2018 - 2030)
- Collectibles
- Video Clip
- Audio Clip
- Gamification
- Others
- Art
- Pixel Art
- Fractal/Algorithmic Art
- Computer Generated Painting
- 2D/3D Painting
- 2D/3D Computer Graphics
- GIFs
- Others
- Gaming
- Trading Card Game (TCG)
- Video Game
- Strategy Role Playing Game (RPG)
- Others
- Utilities
- Tickets
- Domain Names
- Assets Ownership
- Metaverse
- Sports
- Others
Non-fungible Token End-use Outlook (Revenue, USD Million, 2018 - 2030)
- Personal
- Commercial
Non-fungible Token Regional Outlook (Revenue, USD Million, 2018 - 2030)
- North America
- S.
- Canada
- Europe
- UK
- Germany
- France
- Asia Pacific
- China
- India
- Japan
- Australia
- South Korea
- Latin America
- Brazil
- Mexico
- Middle East & Africa
- Kingdom of Saudi Arabia (KSA)
- UAE
- South Africa
Key Companies profiled:
- YellowHeart, LLC
- PLBY Group, Inc
- Cloudflare, Inc.
- Dolphin Entertainment, Inc
- Takung Art Co., Ltd
- Funko, Ozone Networks, Inc.
- Dapper Labs, Inc
- Onchain Labs, Inc.
- Gemini Trust Company, LLC
Key Non-fungible Token Company Insights
- OpenSea (Ozone Networks, Inc.) is an American company that offers a marketplace where NFTs can be sold directly through auctions or at a fixed price based on the Ethereum ERC-721 token standard and Polygon, the layer-2 scaling solution for the Ethereum blockchain. OpenSea’s NFT portfolio includes art, collectibles, music, photography, sports, trading cards, utility, and virtual worlds
- Dapper Labs, Inc. is an NFT company that uses blockchain technology to offer NFTs and new modes of digital engagement to enthusiasts across the globe. Dapper Labs, Inc. is an NFT company that uses blockchain technology to offer NFTs and new modes of digital engagement to enthusiasts across the globe
Recent Developments
- In November 2023, Dapper Labs, Inc. announced its latest NFT platform, Disney Pinnacle. The upcoming platform is expected to revolutionize the conventional pin-collecting hobby by introducing a digital format showcasing characters from Disney, Pixar, and the Star Wars galaxy
- In November 2023, a Web3 company, Treehouse, announced the intellectual property (IP) acquisition of Origins Analytics to improve its non-fungible token (NFT) product offering. Through this acquisition, Treehouse customers will have access to Origin Analytics' well-received tools, including AlphaStream, a system that uses algorithms to tag NFT wallets for notifications, NFT Analytics Bots, and an Application Programming Interface (API) for profiling NFT wallets
Order a free sample PDF of the Non-fungible Token Market Intelligence Study, published by Grand View Research.
