New study: „2021 will be a record year for non-fungible tokens (NFT)“
Non-fungible tokens (NFTs) are booming. More NFTs have been sold in the last 24 hours alone than in the whole of 2020. Could 2021 be a record year for NFTs?
The trade in non-fungible tokens (NFT) is booming. Time and again, unique digital artworks are sold for record sums. Canadian crypto analytics firm NonFungible has published a report predicting that 2021 is likely to be an extremely bullish year for NFT.
In January 2018, William Entriken, Dieter Shirley, Jacob Evans and Nastassia Sachs invented the ERC-721 standard, which is the foundation for Non-fungible Tokens. Initially, the Bitcoin Supreme NFT space was little known outside the crypto space. But in 2020, that changed abruptly. In the second half of 2020, NFT sales rose $9 million by more than 200 per cent.
Since then, NFT sales have grown at an incredible rate and according to Cryptoslam, the sector’s sales in the last 24 hours were just under US$60 million.
In addition, the value of coveted NFT has also skyrocketed. For example, on 25 January, a collectible from the Cryptopunk series, which is very well-known in the crypto community, sold for 605 Ethereum. At the time, the Ethereum had an equivalent value of 761,885 US dollars. In addition, a virtual property, from the blockchain game Axie Infinity, sold for the equivalent of 1.5 million US dollars on 11 February.
2021 the perfect year for NFT?
The total market capitalisation of non-fungible tokens has grown to $338 million by the end of 2020.
Non-fungible Token GrowthSource: NonFungible.com
An analyst at crypto analytics firm Messari believes this figure can grow to more than US$1.3 billion by the end of 2021. He also sees the most potential in the NFT categories of gaming and collectibles. He believes that the sector can only really go through the roof once it arrives in the gaming sector.
The NonFungible team believes that the momentum in 2020 is a sign that 2021 will be an even more eventful year for NFT adoption. Accordingly, the current bull market is only a harbinger of what lies ahead in 2021. In addition, the NonFungible team believes that a large number of mature use cases and structured projects will be established this year.
The ecosystem is full of internal and external signals that the evolution of the NFT space is accelerating dramatically.
NonFungible believes that we are only at the very beginning of the sector’s evolution. Moreover, similar to the internet, it is not yet clear to what extent NFTs will change our world.