Research Shows NFT Transactions to Hit 40 Million in 5 Years

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Last Updated on 22 August 2022 by CryptoTips.eu

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Non-Fungible Tokens (NFTs) have grown rapidly in popularity starting from last year, and this has led to a rapid rise in the number of NFT transactions. It is estimated that there are currently 24 million total NFT transactions, but this is expected to almost double soon.

According to a study by Juniper Research, the number of transactions is expected to hit 40 million by 2027. The projection is based on the assumption that NFTs will experience medium adoption between now and 2027, so it is conservative.

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The Metaverse boom

There has been an acute rise in the number of metaverse projects recently, most of which are game-related. These projects are built on blockchain and work with NFTs either as reward or as integral aspects of the game, which players have to pay for. This means there is an increasing demand for NFT marketplaces to trade these in-game NFTs.

Juniper Research expects this to result in a boost in adoption and growth of the NFT ecosystem, hence the projection. Metaverse projects incentivizes their users to carry out transactions using NFTs, thus increasing the chance that every user of any metaverse project will carry out at least one NFT transaction during the time that they are using such projects.

Indeed, many more people are likely to join these projects and participate in the new metaverse projects in the coming years. Juniper Research however warns of scams which are likely to also increase as NFTs increase in popularity.

Ethereum Merge Could Encourage NFT Use

Another key event that may increase the participation in the NFT ecosystem is the Ethereum Merge, which is scheduled to complete in mid September 2022. The largest NFT marketplace, OpenSea, was built on the Ethereum network, so the high Ethereum gas fees haven’t encouraged much participation.

With The Merge around the corner, one of the biggest changes that Ethereum users can expect is a significant drop in gas fees as the network transitions to a proof-of-stake one. More people should be willing to use NFTs after that, which means Juniper Research’s projection may be easily surpassed when this happens.

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