Interest in NFTs set to continue to grow in 2022
by: Dynasty GI2022-01-05
Interest in non-fungible tokens, or NFTs, is expected to remain high in 2022 as more big names and big funders join the market, including businesses that are not normally associated with digital assets.
In mid-December last year, Nike announced the acquisition of RTFKT (pronounced ‘artefact’), a collectables studio that makes NFTs that bring together culture and gaming. The acquisition’s terms were not disclosed but in May 2021 RTFKT raised US$ 8 million, valuing it at US$ 33.3 million at the time.
Nike’s sportswear rival, Adidas Originals, has also entered the NFT fray through a collaborative project with Bored Ape Yacht Club late last year, which also involved NFT collector gmoney and crypto-focused media group PUNKS Comic. However, the project’s minting was paused shortly after it started due to Adidas’ concerns with Mutant Ape Yacht Club’s ability to mint the tokens. Despite the hiccup, the German sportswear giant has already made 5,294 ETH (the equivalent of some US$ 23 million) from the collaboration. The interest from different business sectors is fuelled by the vertiginous growth in the NFT market seen in 2021. According to The Block Research, the research arm of crypto news site The Block, the trading of NFTs surpassed US$ 13 billion in 2021, representing a 42,988% increase in relation to the previous year. And it doesn’t seem it will stop soon. Just as the year began, Samsung Electronics announced that its new smart TVs being launched in 2022 will include ‘the world’s first tv screen-based NFT explorer and marketplace aggregator’, effectively allowing the trading of tokens via the television set. The announcement follows Samsung’s initial bets in the NFT sector as an investor in startups like Sky Mavis (behind the Axie Infinity game), Dapper Labs, The Sandbox and SuperRare. Gaming is one sector were NFTs are seen as a major potential source of activities and revenue, with the year beginning with the official launch of Fractal, the gaming-focused NFT platform created by Twitch’s co-founder, Justin Kan. Fractal has been set up as a primary and secondary market for NFTs with utility in games based on the concept that gaming companies can mint gaming NFTs for fans, with players then able to trade NFTs amongst them. Fractal will vet game developers’ NFTs based on the credibility of the game, who is behind it and assets provided to the platform in the application process. The platform chose to use the Solana blockchain due to its low costs and high speeds but it also announced it plans to add multichain interoperability as it grows. The founder and CEO of Dynasty Global Investments AG, Eduardo Carvalho, commented:
"This is one of the digital asset world’s sectors to watch in 2022 as many see NFTs as a huge growth market for Blockchain-based gaming activities whilst some also see the latest drive towards NFT art and collectibles as a temporary craze. Either way, the NFT market is showing how effective and powerful Blockchain technology can be and how it can transform the way we see digital assets and trade them."