Non-fungible tokens (NFTs) quickly became the darling of the digital world. The market was valued at $11.3 billion in 2021, according to Verified Market Research.
The industry is expected to grow immensely in eight years’ time. It is estimated to gain an annual growth of 34%.
The Verified Market Research envisaged that the NFT industry would have secured a market cap of $231 billion by 2030. That is about a quarter of the market cap of the whole crypto market. It is currently at $982 billion.
However, the latest decline in NFT trading volumes is creating a situation of uncertainties around the market. Investors are also expressing concerns over the situation. Some have begun to think that the NFT space has begun its journey to death.
A director at Kraken has, however, denied NFTs are dying out. Rather, he expressed optimism about everything going on in the market.
Better days ahead
Since the NFT market peaked at about $17 billion in January, trading has steadily slid till this moment. Reports from June Analytics showed trading value to have dropped to $470 million as of September. That represents a stunning 97% drop despite so much hype toward the end of 2021 and the beginning of this year.
The alarming development is, nevertheless, not sufficient to dampen the optimism of Jonathan Miller. Miller is an Executive Director at Kraken, a crypto exchange firm based in Australia. He said there is absolutely no reason to panic at the moment.
For Miller, the NFT technology keeps maturing by the day. He firmly believes the future of NFT is bright as more people will learn about it. Importantly, the number of people using it will continuously increase as the use cases expand.
NFTClub released data from its research which shows countries with the most research about NFTs. Taiwan came out at the top of the research showing up to 9,629 researchers for every 100,000 residents. Australia came second while closely followed by Canada.
Author: Ifeanyi Egede