NFTs have been the rage all over the world for the last couple of years. However, it turns out that the phenomenon is not quite as global as we’d want it to be. The concentration of NFT-related activities is largely concentrated in a few countries. Among them, the United States alone has 41% of all NFT companies in the world. A study from nftclub.com titled A World of NFT Adoption recently revealed this figure. It also revealed that the country with the 2nd highest concentration of NFT companies in Singapore. However, the gap between the US and Singapore is substantial. While the US has a 41% share of NFT companies, Singapore only has 10%.
We tend to look at NFTs and cryptocurrencies from the same vantage point. But it is increasingly becoming clear that cryptocurrencies have a far greater reach and appeal. While countries like Vietnam, Nigeria, India, Pakistan, etc. show a high rate of crypto adoption, the same cannot be said for NFTs. They remain more of a niche category and still out of the mainstream.
When we look at the reasons behind this phenomenon, it becomes clear that NFT utility is still largely restricted to art and gaming. NFTs have turned out to be vanity tools and not utility tools. Unless this changes, NFTs may never see widespread adoption in developing countries. However, the picture may change slowly as more application-based NFTs find their way to the mainstream. For now, we can expect NFT-related activities to remain concentrated in a few countries.