Many people believe that the NFT is just a speculative bubble, but it is clearly still continuing to grow and bring in a lot of profit based on its characteristics and features. While NFTs have yet to catch on the mainstream attention, businesses in a variety of industries are using them to solidify their position in the growing metaverse mega-theme.
Popularity of NFT despite prejudices
Collins, the world’s most respected English dictionary, named “NFT” as the most prominent term in 2021, when the frequency of using the word climbed by 11,000% over the previous year. Collins’ yearly list of the most popular terms reflects global internet user patterns and interests. NFT is “an irreplaceable digital asset on blockchain technology,”, according to Collins.
While interest in NFTs is growing, enterprise sentiment towards the underlying blockchain technology is still limited. In GlobalData’s Emerging Technology Sentiment Analysis Q3 2021 report, respondents said that they were skeptical of blockchain, with 19% thinking it was just hype. In the Q2 2021 surveys, around 16% of respondents said the same.
The strong growth of NFT and its value to businesses
The continuous rise of cryptocurrencies is responsible for most of the recent expansion of NFTs. In 2022, the cryptocurrency industry, worth $3 trillion, will continue to expand. This suggests that NFTs will gain traction in the coming year as they begin to permit ownership trading, royalty payments to original creators, and create a new platform for creative. According to GlobalData’s Tech, Media, and Telecom Predictions 2022, the key growth sectors for NFTs will be sports, digital art, gaming, and book publishing is not exception.
NFTs are attracting large corporations from a variety of industries, including sports (NBA), drinks (Pepsi), apparel (Gucci), music (Universal Music Group), e-commerce (Alibaba), entertainment (Disney), travel (Marriot), and gaming (Tencent). The entry of the giants in each industry has proved that NFTs can provide a new revenue source. Companies are also interested in using NFTs to increase brand exposure, strengthen customer involvement, and extend into the metaverse.
NFT spreads the metaverse more widely
The metaverse is still conceptual, which means it isn’t well-known or understood by most people. In the future years, as more firms join the NFT frenzy and build new experiences for customers, the metaverse will gain public exposure. This tendency will help the metaverse gain legitimacy in the eyes of the general public while also bringing in considerable revenue.
The fad or the future of technology?
Blockchain technology and NFT give artists and content creators more opportunities to monetize their work. Not stopping at those individuals, NFT gradually attracts popular businesses, organizations, and corporations around the world as listed above.
In the context that more and more areas of life are digitized, NFT is also widely recognized around the world and considered as part of the inevitable development trend of technology. The NFT market will continue to explode, as more individuals and organizations enter this amazingly profitable market every day.