Metaverse important factor for NFT success

A recent report by 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 almost 40 million in 2027.

A key catalyst for the adoption of NFTs, according to the study, are metaverse-related use cases. This NFT niche is projected to be the fastest growing over 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 that goes beyond financial. 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 this, the company asked large financial institutions about their interest in NFTs. Music-related NFTs attracted the most interest.

Music NFTs often offer added value, such as exclusive artist content and shares in song rights, in addition to an increase in value in a wallet.

Metaverse important factor for NFT success

According to Juniper, the report’s data is based on a “medium scenario” for adoption. While these digital assets offer new growth and profit opportunities, the report cautions traders as there are many NFT scams in the market.

Since the 2021 boom, 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 key focus areas continue to be on finding solutions that tackle this problem at its root. Efforts are already underway to better automate threat and theft detection, such as blocking suspect URLs earlier.
— OpenSea (@opensea) August 10, 2022

Solana (SOL) announced its intention to combat spam NFTs. The network plans to add a burning feature to its phantom wallet that will allow users to weed out spam NFTs from scammers.

The current crypto bear market has also eliminated projects that are not sustainable and have no benefit in the long term.

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