Non-fungible tokens (NFTs) paired with games have emerged as a new business model, according to a report on the NFT market for 2021–2022, which was published by a Taiwanese data analysis service provider. However, NFT transactions have slowed down along with the fall of the worldwide cryptocurrency market.
Between January 1, 2021, and April 30, 2022, Big Data Company conducted a study involving posts and Internet volumes on Facebook, YouTube, Instagram, news media, forums, and other websites using its public opinion analysis engine, KEYPO.
According to the research, which used data from Nonfungible.com, games made up the majority of worldwide NFT sales in 2021 (77%) followed by collectibles (16%), artwork (3%), utility NFTs (2%), and metaverse-related NFTs (2%). Games increased in percentage from 44% in 2020 to 77% in 2021. Collectibles made out the largest portion (48%) of the overall transaction values, followed by games (30%), art (16%), utility NFTs (3%), and metaverse-related (3%).
Prepared by DIGITIMES Asia, August 2022. Source: Nonfungible.com
In Taiwan, talk regarding NFTs surged starting in November 2021 and peaked in January 2022. Influencers and famous people entering the NFT community, as well as the prominence of “The Bored Ape Yacht Club” (BAYC or Bored Ape) in the cryptocurrency community, all contributed to this increase. NFTs’ appeal began to wane after January, but monthly averages are still higher than in 2021.
Blockchain, virtual currency, and encryption were common terms in NFT subjects on the Taiwanese Internet prior to this uptick (January 2021 to October 2021). The majority of conversations centered on the art category and the technical side. Keywords like “buy,” “collect,” and “exchange” started to appear as the conversation got more heated. One of the common buzzwords among them was the “game” category of NFTs. Many businesses released mobile games that made the claim that gamers could play for money. This demonstrated how games and NFTs have come together to create a new economic model.
Increasing awareness, keeping repeat clients, and growing the existing groups are the three key marketing strategies used by NFTs. One way to keep customers is to include metaverse components and gaming experiences. Access to various demographics can also be achieved by fusing NFTs with brand narratives and moving into different industries.
However, NFT transactions have also been impacted by the current slump in the global cryptocurrency market. According to a report published by Asia Financial in July, the monthly transaction value on OpenSEa, the world’s largest NFT trading platform, decreased from US$2.6 billion in May to US$700 million in June, a significant decrease from the US$5 billion reported in early January. At the end of April, the average unit price of NFTs was US$1,754, but by the end of June, it had dropped to US$412. According to the study, co-founder of Nonfungible.com Gauthier Zuppinger stated that the NFT industry has been significantly impacted by the crypto sector’s weak market.