Approximately 40 Million NFT Transactions by 2027, But Hesitation Still Slows Growth

According to market researcher Juniper Research, the worldwide number of NFT (Non-Fungible Token) transactions will increase from 24 million this year to about 40 million by 2027. However, many companies are still wary of the NFT market, and that is not without reason rode.

The predicted growth to 40 million NFT transactions within the next five years is based on a ‘mild adoption’ scenario, in which the growth should be stimulated by the metaverse, among other things. “While the NFT market can certainly be a new profitable channel, one should be wary of the risks of an uncontrolled environment where fraud and other malicious activities are still lurking,” Juniper warns.

The latest report from Juniper also states that companies can face brand damage if they engage with NFCs, as technology plays an important role in illegal activities such as money laundering and scams today.

In addition, there is growing concern about the impact of NFT on the environment. After all, transactions are facilitated by the blockchain, which causes enormous energy consumption.

The researchers, therefore, argue for regularizing bodies to ensure the necessary standardization and security. Only in this way will the burden on the environment remain limited, and consumers and sellers will gain enough confidence in the NFT market’, it sounds.

Juniper Research also expects the metaverse to claim the lion’s share of NFT transactions in the coming years. Going from 600,000 NFTs traded this year to 9.8 million trades by 2027.

As a refresher: NFT stands for Non-Fungible Token or ‘unique proof.’ It is a piece of data that is kept on a blockchain (usually Ethereum). Such a token represents a digital asset, such as a drawing, video, or digital object in a video game. Each NFT is unique, cannot be replicated, and can be traded as a kind of certificate.