- 2020 saw the trade value of the NFT market exceed $250 million
- The market capitalization of industry tokens such as artwork, game collectibles, and digital tokens is touted to be in the region bit $338 million as identified by L’Atelier, a BNB Paribus subsidiary
- Popular brands like Nike, NBA, and Formula 1 have started to issue their own NFTs
2020 which was a bullish year for virtually all crypto assets saw the trading volume of NFT exceed $250 million which quadruples the figure from the previous year, 2019.
According to L’Atelier, the analytical subsidiary of French banking giants, BNB Paribas, the market capitalization of big industry tokens such as art and game collectibles is said to be in the region of around $338 million. L’Atelier cites the bullish run of Cryptos to be the reason for the astronomical jump in value
Why Is NFT Such A Big Deal?
Nadya Ivanova, COO of L’Atelier, sponsor of the BNP report explained that the NFT market is an emerging industry and that BNP Paribas is trying to inform the strategic direction of assets.
He further opined that banks and banking products are long-term products and the scale of the NFT industry will be best judged and understood not just in five years, but in 10 to 20 years from now.
In the 140 page document, L’Atelier carefully analyses the budding NFT system by scouring the databases of industry-standard Nonfungible.com. In 11 sections, all the relevant market activities and elucidates on the profitability of actually investing in NFT in the coming years were highlighted.
NFT utilizes Blockchain technology to prove that they are a fairly scarce commodity and to also show that they are valuable which is an integral attribute of digital trading cards, artworks, and other collectibles. However, the fact that each NFT is unique and is a limited edition really sets it apart.
Apart from being an investment, NFTs have the potential to bring people with shared interests and hobbies together as seen in art, sports, and video games particularly in light of the pandemic with its lack of social interactions.
On the Flipside
- Litecoin founder Charlie Lee has predicted that the prices of non-fungible tokens will eventually crash — with supply overwhelming demand.
- Experts have warned that NFTs are non-finite tokens with zero costs to create an unlimited number of tokens
New Investors on the Block
Popular brands such as NBA, Nike, and Formula 1 have started to issue their own NFTs and have been accepted by a significant section of their users as noted by Ivanova. We recently reported that Dapper Labs, a blockchain startup selling NBA collectibles raked more than 50 million in sales in just under 30 Days.
People that we see currently are actually truly profiting from non-fungible tokens. For the first time last year, we saw portfolios and profits in the hundreds of thousands of dollars. I think it's just a question of time until we actually see the first millionaires,
It’s interesting to note that 15 artists who have published works on blockchain have already broken through the $1,000,000 mark as observed by cryptoart.io, a leading voice in the emerging crypto art ecosystem.