The number of NFT transactions are set to rise from 24m in 2022 to 40m per year by 2027, according to a new study from Juniper Research.
The tech sector research consultancy said, based on its “medium” scenario for the NFT sector, with brands leveraging the metaverse to boost digital growth, that annual transactions will increase by 16m over the next five years.
NFTs are unique tokens that exist on the blockchain and used to sell music memorabilia, artwork and viral cartoons, and supporters have claimed many uses for them. Juniper cautioned, however, that NFT vendors must be cognisant of the risks of operating in an unregulated environment due to fraudulent activities and scams.
The report also warned that vendors in the NFT space may risk brand damage by association due to the fact that NFTs have been used in illegal activities such as money laundering and frauds.
Environmental concerns have also been raised due to the amount of energy required to facilitate transactions on the blockchain.
The report predicts that NFTs linked to the metaverse, the tech industry’s big bet on a global VR/AR online space for socialising, collaboration and other life activites, will be the fastest-growing NFT segment over the next five year.
Around 600,000 NFT transactions are expected to be conducted in the metaverse this year, rising to 9.8m in 2027, according to the Juniper, which encouraged consumer-facing businesses to create NFT-based content to meet demand among younger demographics.
The British government this year announced plans to mint the first state NFT as part of a wider effort to turn the UK into “a global crypto asset technology hub”.
(Pic: Getty Images)
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