1.1. NFT Market Overview
From April 12 to September 15, 2021, the number of sales involving non-fungible tokens (NFTs) in the art segment fluctuated. As of April 12, 2021, roughly 23.7 thousand NFTs were sold in the art segment during the previous 30 days. As of September 15, 2021, the aggregated number of sales over 30 days reached approximately 94.5 thousand. As of that period, over 54 thousand sales came from the secondary market (www.statista.com).
The market for NFTs surged to new highs in the second quarter, with $2.5 billion in sales so far this year, up from just $13.7 million in the first half of 2020, marketplace data showed (reuters.com).
We firmly believe that this digital asset market will be as big as or even bigger than the physical asset market in the long run.
As soon as digital shopping became just as “good” as physical shopping, everyone started shopping online, and now, the e-commerce industry is on the cusp of becoming bigger than the physical retail market.
As soon as digital entertainment became just as “good” as physical entertainment, everyone started streaming Netflix, Disney+, and HBO Max, and now, the digital entertainment industry is on the cusp of being bigger than the physical entertainment market. Same with digital advertising. It’s already better than physical advertising. Within the next few years, digital ad spend will comprise more than 50% of total ad budgets.
As soon as digital replicas of physical industries become “good,” those digital replicas will take over.
Why won’t the same happen with the digital asset, or NFT, market? Spoiler alert: It will. The same thing will happen, and at scale, the NFT market will be bigger than the physical asset market.
The investment opportunity, of course, is that the digital asset market today is a fraction of the size of the physical asset market (nasdaq.com).
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