Metaverse to Spike Demand for NFTs in the 5 Years
- The true value of NFTs in the virtual space is their ability to show ownership.
- The metaverse will unlock more use cases for NFTs and keep them in the spotlight.
- More than $2 billion was spent on NFT purchases in Q1 and Q2.
Non-fungible tokens, NFTs, have enjoyed a good run in the spotlight since they first gained mainstream attention two years ago. Although the buzz surrounding this asset class has since reduced from what was seen in 2021, NFTs remain popular amongst crypto users.
A new study from Juniper Research predicts that the demand for the NFT market will soar within the next five years. According to the report, NFT-based transactions will skyrocket from 24 million in 2022 to almost 40 million in 2027.
The report tied that growth to several factors, especially the metaverse. NFTs with metaverse use cases will reportedly be in high demand within the next five years. These types of NFTs will increase in their transactions, moving from 600,000 transactions in 2022 to 9.8 million by 2027.
NFTs in the Metaverse
The metaverse brings with it untold possibilities for both the traditional world and the budding digital space. Several top brands have jumped on the metaverse bandwagon and are creating top pieces for their client base.
Some of these companies adopted NFTs to give their users products with sentimental values. Real estate, gaming, and music projects have all adopted NFTs. The new use cases for NFTs guarantee their role in the digital future.
NFTs are increasingly becoming the bridge to the metaverse. NFTs support social, communal, and identity experiences in the virtual world and grant users access to a series of rewards. Their value goes beyond their financial appeal.
On platforms such as Decentralands, NFTs symbolize ownership of digital structures and real estate. They enable the property transaction that drives the metaverse. According to Eric Anziani, COO of Crypto.com, although NFTs unlocked the potential of digital arts, their value is bound to go beyond that. Eric believes NFTs will be the tool that represents every type of digital asset in the virtual world. Speaking on the application of NFTs in the metaverse, Eric said,
For metaverse property rights, you simply cannot fake it because of the way smart contracts are defined, and the NFTs programmed. You know you own an asset and can demonstrate ownership fully. Based on the terms and conditions of that virtual environment, you can then assert ownership rights.
Despite claims that NFTs have lost their appeal, reports state that more than $2 billion was spent on NFTs in Q1 and Q2. These figures show that the crypto community recognizes NFTs as a vital part of the system.