Activate Consulting, a technology and entertainment consultancy, expects non-fungible tokens (NFTs) to go mainstream by 2022, arguing that every tech and media company will have to embrace the innovation.
In its Technology and Media Outlook 2022 Annual Report, which predicts key trends and offers technology analytics, Activate presented its take on NFT, arguing that these digital collectibles will continue their journey across a wider range of industries.
“As consumers spend more and more time on digital technology and interest in the metaverse grows, we believe every technology and media company will need an NFT strategy,” the company said.
NFTs are digital assets that act as ownership of a unique digital item. According to Activate, NFT’s value proposition is that they validate the ownership and authenticity of digital assets. NFTs can also be programmed using smart contracts, allowing developers to receive subsequent royalties every time the NFT changes hands.
Growth in NFT sales in 2021 is growing
With NFT sales rising to new heights, 2021 was a watershed year for these assets. While NFT sales for all of 2020 were just under $ 95 million, according to DappRadar, that figure rose to $ 1.2 billion in the first quarter, $ 1.3 billion in the second quarter and a whopping 10. $ 7 billion in the third quarter of 2021.
According to Activate, the surge coincides with a significant increase in both interest and NFT buying activity among US traders. Reportedly, 73% of NFT traders in the US made their first purchase this year.
Activate also noted that “a wide range of industries are currently developing and testing NFT products.”
As previously reported, renowned film producer Quentin Tarantino plans to release seven uncut scenes from Pulp Fiction in NFT form. Likewise, Warner Bros. will release digital collectibles related to the upcoming sci-fi movie Matrix Resurrections.
In addition to the film industry, which is capitalizing on NFT as a way to offer unique, exclusive digital art to advocates, big brands and tech companies from a wide variety of industries have also adopted NFT.