Blockchain-Backed NFT Market Value Grew 299% in 2020

The report published figures confirming the bullish nature of the irregular token markets over the past year. According to the two analyst firms behind the study, the NMT sector will grow by 299% by 2020.

Total number of active portfolios up 97%

According to the NMT 2020 report, published by L’Atelier BNP Paribas and Nonfungible.com, the volume of the NMT market tripled last year, with a total value of more than $250 million.

The research paper argues that the non-distorted token market can be considered an important asset class for the so-called virtual economy.

With such figures, both companies expect NMT to be massively adopted in the coming years.

One of the reasons for the growth of the market is the interest of global brands in NMT. Fashion and luxury brands like Nike, Louis Vuitton, Breitling and sports brands like the NBA and Formula One are actively creating NFT-based consumer products and services.

In terms of the total number of active portfolios, the study found a 97% increase over 2020. In contrast, the total cost of all NMT operations increased from $62,862,687 in 2019 to $250,846,205 in 2020.

Nonfungible.com and L’Atelier BNP Paribas also saw an increase in the number of buyers and sellers, from 44,644 to 74,529 (+66%) and from 25,264 to 31,504 (+24%) respectively.

The NFT market can strengthen the concept of the virtual economy in the coming years

Nadia Ivanova, Director of Operations and Head of Forecasting at L’Atelier BNP Paribas, pointed out that the boundaries between the virtual and the physical world are becoming increasingly blurred and we are witnessing the rapid growth of the virtual economy on the Internet, each offering numerous opportunities in terms of employment, investment and business.

She also added:

Despite all the hype surrounding cryptocurrencies, it is the emerging tokens that drive much of the economic activity and use cases within virtual platforms, and they are expected to become both a major asset class and the backbone of the virtual economy over the next decade. Investors and brands looking to benefit from the transition to virtual operations should keep a close eye on the ever-changing and growing NMT market.

According to a December 2020 survey of 29,574 users conducted by Crypto.com, 47% of respondents had heard of NMT, and of those, 63% had only a basic understanding of it, while 57% of respondents had never used NMT.

What do you think of this report on the indecipherable tokens market? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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