Non-Fungible Token Market Innovations: The Future Of Digital Ownership

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.

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

• In April 2023, The NFT marketplace Sandbox revealed a strategic alliance with Ledger Enterprise, a platform focused on developing, expanding, and securing Web3 strategies. This collaboration aims to bolster security measures and elevate partner experiences. Via this partnership, Sandbox's associates can securely move their non-fungible token collections to the Ledger wallet, guaranteeing maximum security for their valuable assets. This integration aims to offer an extra level of protection and assurance for users engaged in the Sandbox ecosystem

Order a free sample PDF of the Non-fungible Token Market Intelligence Study, published by Grand View Research.

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

• YellowHeart, LLC is an NFT ticketing and collectibles platform that caters exclusively to artists, teams, and their fans. YellowHeart, LLC is leveraging blockchain to transform the way tickets and art are sold. The company is focusing on creating an asset class that ensures that creators earn a portion of all future profits derived from trading their creations and that buyers have a reliable way of tracing the origin of tradable items

• Nifty Gateway (Gemini Trust Company, LLC.) is a digital auction platform for NFT art. The company has art NFTs by Beeple, Pak, Refik Anadol, and other popular NFT artists. The company collaborates with top artists to create limited-edition, high-quality NFT collections