Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
The most expensive NFT sale was made after the successful purchase of virtual plots of land on Axie Infinity valued at $1.5 million.
The global Ethereum-based Non-fungible token (NFT) market saw impressive growths in 2020 according to details from a new report by NonFungible and L’Atelier. Per the report, as detailed by Decrypt, the total transactions of the NFT market grew triple-fold in 2020 with the total valuation topping $250 million.
The digital asset ecosystem is booming in a dynamic way, a reality that permits innovations to grow. NFTs are a unique type of digital asset whose relevance and use cases are still evolving. They are assets built on the Ethereum blockchain through the use of the ERC-721 standard for tokens. The asset’s unique capabilities include their usage as a tool for verifying proofs of authenticity and ownership, to gaming amongst others.
The report showed that NFT use cases in art and the accompanying transactions saw the biggest growth for the year, with sales up by 2,800%.
“2020 has been a historic year for NFTs, and we’ve seen healthy growth across many metrics,’ Dan Kelly, CEO of NonFungible, said in a statement. “Equally exciting is the explosion of different use cases, communities, and projects that have developed over the last year,” he added.
The Non-Fungible Token marketplace has become profitable for many people involved in NFT creation in general. The most expensive NFT sale was made after the successful purchase of virtual plots of land on Axie Infinity valued at $1.5 million. Besides this impressive figure, The NFT space according to the report has earned many traders over 6-digit profits over the past year.
The impressive growth trajectory has however been seen as a springboard for bigger growth this year 2021.
Other Highlights of the Non-Fungible Token Market Niche
According to the report also, virtual worlds through which the sales of ‘landed properties’ occur makes up the largest sector of the NFT market with 25% of the total market sales. The fast-growing virtual art niche that recorded sales of $12.9 million in 2020, up from $456,885 in 2019 makes up 24% of the total sales or transactions. Additionally, gaming NFTs make up about 23% of the total market value while collectibles linked to sports brands including Formula1 and NBA make up 13% of the total market valuation.
The NFT market growth is partly being fueled by the adoption of the new digital creativity by brands that aim to connect with customers in a unique way.
“Traditional brands like Nike, Louis Vuitton, and Formula 1 are already spearheading the first generation of commercial uses for NFTs,” Nadya Ivanova, chief operating officer at L’Atelier, told Decrypt. “We expect to see more brands entering and investing more resources in this space as they find new ways to engage virtually, and profitably, with their customers via NFTs,” she added.
Additionally, financial institutions are also adopting and creating ways to integrate the potentials of the NFT marketspace by “seizing the opportunity to capitalize on a broader shift to virtual finance already evident in the rise of cryptocurrencies and decentralized finance,” explained Nadya.