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- Trade volume of the NFT market was up $250 million.
- This industrial boom has been observed in the last quarter started before the year-end crypto bull run.
- NFTs are not different than bitcoin, as they too rely on blockchains
BNP Paribas, a unit of French bank, sees the growing interest of the people in the non-fungible tokens market. The market capitalization has surpassed $250million in 2020 only. This is a four times increase from 2019.
NFT Market
The year 2020 saw a massive interest of the investors in the non-fungible token (NFT) market. In 2020 the trade volume of the NFT market was up $250 million. It is a four times increase from 2019. The market capitalization of the nascent industry of tokens has a variety of items in its kitty. Among them includes the artwork and game collectibles. The market for it reached $338 million.
L’Atelier Report
As per the report by L’Atelier, an analytical unit of the French banking giant BNP Paribas in its report has mentioned the increasing projection and market capitalization of the NFT market. This industrial boom has been observed in the last quarter started before the year-end crypto bull run. This bull run saw the bitcoin increase by 177 percent.
The strategic direction of BNP Paribas is different and why the NFT market is the interest of the bank is the question that arises. It is a thoughtful process as mostly banking products are actually long-term products. So, the point is to understand what the world will be like not just in five years but actually 10 to 20 years from now. This is evident with the change in the perception of the people and the industry and accepting the virtual currency with open arms, given the emerging technologies and the socio-cultural changes that people will see, as was said by Nadya Ivanova, COO of L’Atelier.
It is the 140 page in-depth analysis of the NFT ecosystem, prepared in partnership with industry data platform NonFungiable.com. It is divided into 11 sections, highlighting everything from the global market activity and trends of profit-making in the space and predictions of the current year.
NFTs are like Bitcoin
NFTs are not different from bitcoin. This is because they too rely on blockchains, similar to trading cards, works of art and other collectibles. Just like bitcoin and other cryptocurrencies, each one is unique and a limited edition. Besides other industries and the exponential growth in it, certain domestic brands like LBA, Nike, and Formula1 have also started to issue their own NFTs and the emergence of a new generation of traders and investors.
Meme investors
There are some investors who are also known as meme investors who make decisions on the market trend and hype rather than the underlying fundamentals. The amateur traders actually know the rules of the game. According to Ivanova, who is studying about the NFT market, people are currently benefiting from NFT tokens. The portfolios and profits in hundreds of thousands of dollars was seen the first time.
Block 21 and portfolio owners
There are almost 15 artists who have published their work on the blockchain and they have crossed the $1,000,000 milestone, as per the Cryptoart.io. Crypto art is one of the growing segments of the NFT ecosystem which saw an upliftment in October. Christie started an auction on Block 21, a digital portrait of bitcoin inventor Satoshi Nakamoto. It is the first time a prominent auction house sold a blockchain related art work. Block 21 was sold for $131,250,10 times its estimated value.
The portfolio owners have some personal attachment to the NFT projects. There is not just a pure interest but also a social perspective related to the owners of the NFT projects. L’Atelier and Non Fungible’s findings suggest that the ownership of NFT has a lot of scope for interactions with users and buyers, who have the same interests. The interest could be in art or video games- an important aspect to consider within the context of the pandemic that started in 2020.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
