The global number of NFT (Non-fungible Token) transactions will rise almost twofold in five years: metaverse will boost digital growth
A new study from Juniper Research has found that global NFT transactions will increase from 24 million in 2022 to 40 million by 2027. This scenario is based on the plausible medium adoption of metaverse by global brands.
Nevertheless, the researchers note vendors must be vigilant about using NFTs as a new channel for growth. In particular, they should consider the risks of operating in an unregulated environment home to fraudulent activities and scams. Thus, the report stresses that vendors involved with NFT space may face reputational risks. They might stem from associations with the role NFTs have had in illegal activities.
Another significant issue is environmental concerns. Namely, the current way transactions are facilitated on the blockchain is creating massive energy usage. Therefore, regulators need to cooperate with industry bodies to standardise processes with reduced environmental impact and built-in consumer protections. It will enable vendors to utilise NFTs for further innovative engagement of consumers.
Furthermore, the report predicts that metaverse-linked NFTs will be the fastest-growing NFT segment over the next 5 years. They will increase from 600,000 transactions in 2022 to 9.8 million by 2027. Juniper Research highlights the rising demand for immersive experiences as a driver of metaverse adoption.
Therefore, the research urges consumer-facing businesses to create NFT‑based content to meet changing demands for online and digital content from a younger, tech-savvy target audience.