A study conducted by Juniper Research found that the number of transactions for NFTs or non-fungible tokens across the world is set to rise. It will rise from around 24 million in the year 2022 to around 40 million by the year 2027.
This is according to the scenario for adoption that is medium, coming from the researchers. Brands are already trying to leverage the metaverse in order to boost their growth digitally. There is a note of caution to be aware of, however. It’s been said that while NFTs are emerging as a new channel when it comes to growth, vendors still need to be careful. They should be cognizant of the risks stemming from operating in environments that are unregulated. These are often places where scams and fraudulent activities are common.
Growth Of NFTs
An NFT is a token that is unique, and exists on the blockchain. This means that it’s not possible for it to be replicated. This token can be used to represent items in the real world, such as music and artwork. According to the report that was released, vendors who are involved in the NFT space could end up damaging their brand name, due to the associations attached.
There are also environmental issues involved as well. This is as the way transactions are facilitated currently ends up creating massive energy use. Regulators need to work together with bodies in the industry, in order to standardize the process as well as reduce the environmental impact.