A recent report from Juniper Research analyzed the development of the NFT market over the next five years. According to the study, the number of transactions related to NFTs worldwide will increase from 24 million in 2022 to nearly 40 million in 2027.
An important catalyst for the adoption of NFTs, according to the study, are metaverse-related use cases. This NFT niche is expected to be the fastest growing in the next five years. The number of NFT transactions related to the metaverse is expected to increase from 600,000 transactions in 2022 to 9.8 million in 2027.
This data shows that consumers want value from their digital assets beyond financial ones. Again, that’s a good indicator for brands like Gucci and Adidas that already have products in the Metaverse.
A recent report from Ripple (XRP) also confirms this. In it, the company asked major financial institutions about their interest in NFTs. Music-related NFTs attracted the most interest.
Music NFTs often offer added value in addition to increasing value in a wallet, such as exclusive artist content and shares in song rights.
According to Juniper, the report’s data is based on an “average scenario” for adoption. While these digital assets offer new growth and profit opportunities, the report warns traders that there are many NFT scams in the market.
Since the boom in 2021, there have been multiple reports of NFT scams. Most of these were about the security of NFTs in crypto wallets and pump-and-dump systems.
NFT marketplace OpenSea recently wrote on Twitter about fraud and stolen NFTs:
9/ In the long term, our main focus areas remain to find solutions that tackle this problem at the root. Efforts are already underway to better automate threat and theft detection, such as blocking suspicious URLs earlier.
— OpenZee (@openzee) August 10, 2022
Solana (SOL) announced its intention to fight spam NFTs. The network plans to add a burning feature to its phantom wallet that will allow users to delete spam NFTs from scammers.
The current crypto bear market has also eliminated projects that are not sustainable and provide no benefit in the long run.