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Non-fungible token (NFT) transactions are expected to reach $40 million by 2027 as the metaverse trend continues to gain steam, according to a report by Juniper Research.
The study noted that a 66.6% growth would be recorded during the forecast period. Per the report:
“NFT transactions will rise from 24 million in 2022 to 40 million by 2027. This is based on our medium scenario for adoption, with brands leveraging the metaverse to boost digital growth.”
For consumer-centred businesses, the research pointed out that creating NFT-based content would give them a competitive advantage based on the changing needs of the younger and tech-savvy demographic.
Younger generation consumers are inclined to purchase novel digital and online content forms. Per the announcement:
“The report predicts metaverse-linked NFTs will be the fastest-growing NFT segment over the next 5 years, increasing from 600,000 transactions in 2022 to 9.8 million by 2027. It highlights the rising demand for immersive experiences as a driver of metaverse adoption.”
Despite NFTs offering a new growth channel, the research stated that vendors ought to be cautious not to operate in unregulated environments, which are home to scams and fraudulent activities. The report added:
“Vendors who partake in the NFT space may risk brand damage by association, due to the role NFTs have had in illegal activities, such as money laundering, scams, and fraud.”
For a conducive NFT operating environment, Juniper Research highlighted the need for regulators to collaborate with industry bodies to standardize processes with built-in consumer protections and reduced environmental impact.
Since NFTs are digital assets whose ownership is blockchain-based, their worth is pegged on their uniqueness. Furthermore, their intrinsic value is founded on their limited supply because they must be bought as an entire token.
Meanwhile, crypto exchange KuCoin announced a $100 million “Creators Fund” to boost the Web3 ecosystem and propel early-stage NFT projects, Blockchain.News reported.
Image source: Shutterstock
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