One of the most enduring accusations against the NFT space is that NFTs are going to be a short-lived fad. As far as many critics are concerned, NFTs have a limited relevance period and will die off soon after.
But thankfully for NFT fans, a new report from Juniper Research contradicts this. In fact, the report states that NFT transactions are expected to rise significantly from 2022 to 2027, going from 24 million per year to 40 million per year over the next five years.
NFTs to See Continued Increase
According to the report, several factors are credited for this predicted growth. More specifically, the report outlined a number of use cases for NFTs that, should they continue to progress, this leap in NFT transactions will take place.
“The research also outlines the technical mechanics behind the implementation of NFTs across 7 key segments – outlining the business cases, revenue models, and target audiences that are driving the market using models and case studies,” the report says.
The 7 key segments identified were art collectables, fashion, gaming, metaverse, music, and real estate. All these segments have, over the last few years, been at the forefront of NFT development and use. All sorts of artists, from the more established to the underground, have been auctioning their works as NFTs. Fashion brands from Paco Rabbane to Gucci have released NFT-based products for customers.
NFT-focused gaming has become immensely popular over the last few years, with Gamestop even launching its own marketplace. Metaverse projects like Otherside have attracted attention from fans all over the world and subsequently sold out its entry NFTs. The music industry is fast developing a love affair with NFTs and real estate isn’t being left behind.
All things considered, NFTs are being applied aggressively in so many sectors and Juniper Research believes this will keep them relevant into the future. But it is not all smooth sailing. In the same report, the firm warns that businesses that launch NFT products must keep in mind the dangers of operating in an under-regulated industry like blockchain.
Then there are the environmental factors attached to blockchain use, especially in terms of energy use and emissions, though some firms are leaning towards low-emission blockchains for their projects. Finally, there is the potential social blowback of these projects as some customer bases may look at brands negatively for dealing with NFTs.
We have already seen this in the past with fans of some video game projects disapproving of their NFT endeavours or some music fans accusing artists of ‘selling out’ by releasing NFTs.
The Future of NFTs
As this report shows, NFTs can and will continue to make waves well into the future if their use cases are explored. We’ve already seen NFTs be embraced by all sorts of businesses across different sectors and this could be the key to the industry’s survival.
As this hopefully persists, the NFT space can be even bigger by 2027.