The non-fungible token (NFT) sector is poised to reach an annual growth rate of more than 30% over the next six years.
According to a study by Research and Markets, the NFT sector will have a compound annual growth rate (CAGR) of 31.6% over the next six years, and the market will hit $97.6 billion by 2028.
The analysts named the following as the main growth drivers:
- Growing demand for NFT technologies due to the ability to create intellectual property with authenticity.
- High demand for NFT technologies among various members of the fashion industry.
- Modernization of token standards that secure users and creators and increase NFT functionality.
- Increased use of NFTs to sell digital real estate.
Interestingly, a similar market study in May of this year by MarketsandMarkets analysts predicted the NFT sector to grow to $13.6 billion by 2027. Therefore, thanks to a combination of factors and increased demand for the technology, the growth rate rose by 86%, compared to the analysts’ assumption six months ago. Recall that a recent Juniper Research research proved that the growth of the NFT sector directly depends on the popularity of the metaverse and that the global number of NFT transactions will reach 40 million by 2027.
However, the study by Research and Markets also identified several factors that could slow down the NFT market development. The experts highlighted the growth of NFT fraud among these factors.
