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The NFT market went big last year, getting the attention of notable names across different spheres of life. As a result of the NFT craze, the global NFT market hit $17.6 billion last year.
Merger and acquisition (M&A) deals of non-fungible tokens (NFT) and game finance (GameFi) companies gained the most attention in the first half of 2022. Data compiled by The Block shows that NFT-related companies are continually establishing their presence in crypto deals. Specifically, about 38% of NFT and GameFi M&A deals happened in the year’s first two quarters.
NFT and GameFi M&A Deals Surge in 2022 Q1 and Q2
Citing a report by The Block Research, there have been 53 M&A deals in NFT and GameFi since 2013. About 20 of these 53 NFT and GameFi M&A deals were in 2022 Q1 and Q2. While 8 deals were in the first quarter, a record high of 12 was in Q2. The highest deal was in the second quarter, involving NFTs and GameFi. Specifically was OpenSea’s acquisition of NFT aggregator Gem for $238 million.
Also, the Q1 and Q2 deals represent the largest boost in M&A deals in both the NFT and GameFi industries. Stating its mission to bring more NFTs power and potential to more people globally, OpenSea said it acquired Gem to “invest in the future of the pro community.”
“After the acquisition, Gem will continue operating independently from OpenSea as a stand-alone product and brand. The Gem you know and love won’t change; and over time, we’ll bring key Gem features to OpenSea to make buying NFTs seamless and delightful for every experience level.”
Notably, M&A deals in these industries surged at a time the NFT buzz had cooled. The NFT market went big last year, getting the attention of notable names across different spheres of life. As a result of the NFT craze, the global NFT market hit $17.6 billion last year. The 2021 record signified a 21,000% growth over the market’s worth of $82.5 million in 2020. Despite the transaction volume of these non-fungible tokens, the hype remains, and many believe that the market is here to stay. The insane explosion has made NFTs the foundation for many projects that are expected to launch in the coming year. Also, the global NFT space is expected to reach $21.33 billion this year.
GameFi Contributes to NFTs Growth
GameFi also fueled NFT development by introducing play-to-earn games based on a blockchain. Players of these games earn in-game NFT assets as rewards. Examples of these play-to-earn games include “Axie Infinity” and “My Neighbor Alice.” Players can transfer their NFT to sell or trade on a marketplace. In addition to earning in-game NFT assets as rewards, players can also make real money. Some of the top projects underway to impact the gaming industry this year include Silks, Decentraland, and Chosen Ones. Others are Gods Unchained, and The Sandbox.