Is NFT just a digital art piece? According to the last CoinGecko survey, NFT utility emerged as the top reason that people buy an NFT for. People now want NFTs to have more use cases than just being quirky digital collectibles, which aligns well with its fundamentally broad-based nature.
It needs to be noted that the hype around Non-Fungible Tokens (NFTs) began to pick up in late 2020 and early 2021. The sale of a digital artwork by the artist Beeple for a record-breaking $69 million in March 2021 helped to fuel the hype around NFTs even further. This sale was a significant milestone in the NFT market, as it demonstrated the potential for digital art and collectibles to have significant value.
Following the sale of Beeple’s artwork, the total value of NFTs began to increase rapidly. According to data from NonFungible.com, the total value of NFT sales in the first quarter of 2021 was around $2 billion, which was more than the total value of NFT sales in all previous years combined!
The total trade volume for the first quarter of 2023 (January-March) amounted to $5.67 billion, 84.2% higher than the previous quarter ($3.08 billion). Notably, the market has returned to July 2022 levels for the past two months, following a continuous decline from its peak in Q1 2022. And it is projected to reach a trading volume of $22.69 billion by the end of 2023.
The adoption path of NFTs (non-fungible tokens) has progressed from being seen as quirky collectibles to having utility value. Initially, NFTs were viewed mainly as digital art pieces, and their value was often based on their rarity and uniqueness. However, over time, NFTs have gained more practical applications, such as being used to represent ownership of tokenized assets or virtual real estate, in-game items. In DeTech.World we are working on utilizing NFT for representing a new type of assets — Tech Assets. And we believe that the use cases for NFTs are evolving, and their value is increasingly being determined by their utility in addition to their aesthetic or symbolic appeal.
Moreover, the fingers allow us to say that the market for virtual goods could be as significant as the market for physical goods, such as corn, which had a total value of worldwide exports estimated at $36.4 billion in 2020, according to the United Nations Food and Agriculture Organization (FAO).