A study from Juniper Research has found that the global number of NFT transactions will climb from 24 million in 2022 to 40 million by 2027.
Juniper warned that although NFTs present a ‘new channel for growth’, vendors must be cognisant to the risks of operating in an unregulated environment home to fraudulent activities and scams.
The report highlighted that vendors who take part in the NFT space may risk brand damage by association, due to the role NFT have had in illegal activities, such as money laundering, fraud and scams, as well as environmental issues.
Juniper also called on regulators to work with industry bodies in order to standardise processes with reduced environmental impact and built-in consumer protections to enable vendors utilise NFT as a medium to further engage with consumers.
The report has also predicted metaverse-linked NFT will be the fastest-growing NFT segment over the next five years, increasing from 600,000 transactions in 2022 to 9.8m by 2027. It highlighted rising demand for immersive experiences as a driver of metaverse adoption.
In order to capitalise on this growth, Juniper has urged consumer-facing companies to create NFT-based content to meet changing demands from a younger, tech-savvy demographic.
Social networking giant Instagram is set to trial the use of NFTs on its platform for some US users.
According to The Verge, a group of non-fungible token creators and collectors will soon be able to display their tokens on Instagram. CEO of Meta Mark Zuckerberg said that the tokens were being tested on the platform, with ‘similar functionality’ also coming to Facebook.
Head of Instagram Adam Mosseri also remarked that a small group of US users will have the ability to display the tokens on their feed, stories and in messages. Details of the tokens will be displayed in a similar way to tagged profiles and products and will be named digital collectables.
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