As the market matures, non-fungible tokens (NFTs) are gaining more attention and would experience exponential growth. This is the view expressed by JP Morgan’s analyst Nikolaos Panigirtzoglou.
According to him, the future of the NFTs is bright considering that, down the line, there will be more tokenization of real-time assets.
The bank which has classified cryptocurrencies as an emerging asset class previously made a statement implying that it envisages an uptrend for the industry.
Tokenization of Real-World Assets
This, the bank said, won’t necessarily come from the popular assets that are already known to investors but through the digital universe which is popularly referred to as the metaverse. The metaverse is the digital universe that enables human interaction with the abstract digital space.
According to him, the dominance of NFTs will occur as more real-world digital assets are tokenized. He also said that the multiplicity of blockchains challenging Ethereum is an indication of what the trend would be like in the future. At the moment, most of the decentralized applications are built on the Ethereum network.
$2.2 Billion Industry
The reality on ground in the NFT market aligns with the views of Panigirtzoglou. NFT platforms such as Opensea have grown at an amazing rate that the company is struggling to meet up with customer demands. In fact, the shortage of manpower made a staff of the company to state that there were 37 of them handling the bulk of NFT transactions in the market.
In 2021, investments into the space surged to $2.2 billion from $44 million. Opensea has been flush with its Series C funding round that raised $300 million. An increase of 600-folds in its transaction volumes also attests to the massive growth that the NFT space has experienced.