As the crypto and blockchain markets mature, attention is focused on the rapidly growing non-fungible token (NFT) and Metaverse. NFTs have become a big part of Web3 and Metaverse continues to grow in popularity among consumers and businesses. NFTs are said to be the driving engines of the Metaverse, so the two are closely linked.
The exponential growth of NFTs The number of NFT transactions, users, and active collections increased in 2021, earning the term NFT the coveted title of “word of the year” in the Collins Dictionary. And that momentum continues with Chainalysis State of Web3 reporting that collectors sent more than $37 billion into the NFT markets between January and May of this year. That means they’re on track to surpass the $40 billion 2021 total. There are typical peaks and troughs in NFT activity, with markets going through periods of growth, decline, and recovery, often due to global trends and levels of user demand.
Even with these fluctuations in mind, there has been some growth in the number of active NFT buyers and sellers in the market, which increases every quarter since Q2 2020, before declining in Q2 2022. There has also been a steady increase in the number of active NFT collections on OpenSea since March 2021, with over 4,000 reached by the end of April 2022.
Using NFTs, people can own digital assets such as images, audio, and video and sell, buy, and transfer goods. It is even possible to own a virtual land within the Metaverse. Many brands, gamers, and individuals are already treating the Metaverse as a living reality, which is reflected in the price of the virtual plot. Blockchain-based virtual real estate prices rose 879 percent from September 2019 to March 2022, while real estate prices rose 39 percent.
The Metaverse is an evolving space, so the long-term value of virtual land depends on current and potential uses, such as access to exclusive communities and events. It is currently an essential driver of demand for NFTs and now indicates that it has moved into virtual real estate sales.
Ready for the future
The Metaverse is on its way, with VR technology, virtual real estate, and blockchain working together to bring us closer to meaningful digital ownership. NFTs are at the center of all these factors, and to become key players in determining ownership of the Metaverse, they must add more value through utility rather than mere collection. It’s an exciting time for the Metaverse, with renowned brands leading the way in embracing these game-changing technologies.