NFT is considered an investment option by private equity firms
The NFT industry is growing rapidly and the number of NFT markets is growing rapidly.
Sales in the NFT market increased 2882% in February. This figure eclipses monthly sales in any month over the past three years. The rapid growth of the NFT market follows the high-profile auction of non-fungible tokens led by Sotheby's and other well-known brands (such as Time magazine), and the company plans to auction three NFTs next month.
In early February 2021, the NFT sector began to explode. NFT marketplaces such as RFT and OpenSea have begun to see an uptick in NFT sales because, as celebrities enter the NFT market, both traditional investors have taken profits from venture capital.
Simon Dedic, managing partner at Moonrock Capital, said the NFT market is very different from the explosive growth of CryptoKitties in 2018.
The infrastructure supporting NFT has been rapidly improving, allowing the department to be used in NFT services in all areas, such as the marketplace, minting platforms, trading venues and NFT financialization protocols.
NFT technology initially piqued our interest a few years ago when CryptoKitties got into trouble with the Ethereum network and became a hot topic in the field.
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Now, the NFT market has experienced significant growth and interest, and is significantly different from the recent surge in popularity.
NFT has not yet been adopted by the mainstream world and has not seen the awareness of retail investors. However, improvements in user interface, accessibility and user experience will become the elements that will drive the next wave of growth in the NFT industry.
After years of focusing on Web 3.0 investments, Moonrock Capital recently incubated an NFT project for the first time in its history, demonstrating that demand for NFT is increasing.
The new NFT platform Polkamon on Polkadot attracted Morningstar Ventures, Ascensive Assets and Divergence Ventures in the first round of funding, funds that typically invest in the Polkadot field and the Web 3.0-related DeFi protocol.
In recent months, funds targeting NFT have also appeared, showing that people have shown great interest in the NFT market.
Traditional venture capitalists such as Gary Vaynerchuk have also started to invest in the NFT market. Vaynerchuk believes that NFT will play a key role in making money over the Internet.
Vaynerchuk stated that he envisions that all assets, such as music, books, art and collectibles, can be tokenized through NFT.
It seems to be a huge change: the blockchain, the digitization of all commodities, the way music and books are distributed, the way art and collectibles are sold, the way season tickets are sold.
Cinchblock CEO Elvin Cheung also stated that NFT will become an important part of the traditional financial and cryptocurrency markets.
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Binance invested in Binance Smart Chain's first NFT marketplace, Refinable, which shows strong demand from existing cryptocurrency leaders.
At A16z, they also began leading significant investments in the NFT market. A16z recently raised $23 million in funding in OpenSea, which is the largest NFT marketplace since 2017.
In a paper explaining the arguments behind their investment, A16z stated that sales of major NFT resources have increased to $100 million per week.
In the medium to long term, it is likely that some of the world's best-known brands will enter the NFT market directly to produce products with their intellectual property rights.
Gizmodo states that DC, the company behind DC Comics, is exploring the process of selling original DC artwork through NFT.
DC stated that it is considering distributing digital artwork exclusively for DC comics. DC's comic book brands include Superman, Batman, Iron Man and The Dark Knight Returns.
The company emphasized that it is not allowed to sell DC NFT with DC intellectual property rights without DC's permission, which shows that the company has serious plans to enter the market.
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DC has reviewed the complexity of the NFT market and we have provided a reasonable and fair solution for all relevant parties (including fans and collectors). Please note that you wish to sell any DC knowledge with DC intellectual property or without NFT. Digital images of proprietary rights are provided for DC publications or are provided outside the scope of your contractual commitment to DC.
If the trend of global brands creating their own NFTs and distributing them through third-party marketplaces and distributors is successful, this will set new trends in the NFT market, which may lead to true widespread adoption.