Marketing trends
Last updated
Last updated
Along with the development of decentralized platforms (Defi), the Crypto market experienced substantial growth from the end of 2020 ($500,000,000 capitalization) to the 3rd quarter of 2021 ($2500 billion capitalizations).
According to Nonfungible.com, a reputable market tracker, the soaring NFT market was valued at $338 million, although it had peaked at $42 million three years prior. As a result, financial analysts worldwide anticipate that NFT will become cryptocurrency investors' latest money-making craze. When the Blockchain platform is fully developed and adopted by the general public, the current NFT mania will continue to burst with greater resonance.
The main target categories for NFT today are art, collectibles, luxury goods, games, and gambling. NFTs touch a core addressable market worth over $1 trillion.
The global annual spend for those categories combined to a $1.05 trillion market in 2020. In 2019, those categories totaled $1.25 trillion, which I believe is reasonable to expect in the 2021 post-pandemic recovery. Given recent history, the total addressable market should grow 4-7% in a normal year
A $20.8 billion market may seem large already, but it’s only 1.7% penetrated relative to the total $1.25 trillion opportunities. The market only gets more attractive as an investor the deeper you dig into the numbers to separate what’s real vs speculation.
The distinction between core and speculative is important because core spend is sticky and recurring, while speculative spend is flighty and unreliable. If NFTs grow to take a meaningful piece of that trillion-dollar-plus opportunity, it will be because core volume overtakes speculative volume, signifying real productive use of assets.
