Sport NFTs Are Expected To Generate More Than $2 Billion This Year
Many investors keep watching the prices of cryptocurrencies with a keen eye. Algorand is one of many digital currencies that might be entering a bubble but might also be a part of a booming industry.
NFTs are another industry that’s closely related to cryptocurrencies, and they’re also growing rapidly. The sports industry is responsible for a lot of this growth. Sports fans have a new way to show their passion for their favorite franchises, individual athletes, and specific moments in history. Sports collectibles have been popular for a long time, and NFTs are a new and digital way of doing this.
Deloitte recently released a report saying that as many as 5 million individual sports fans will get NFTs in 2022. This will happen through a combination of sales, contests, and gifts. The same study projected that NFT transactions are going to double across the span of the year. Sports NFTs resulted in over a billion dollars in 2021 transactions, but it should be $2 billion for 2022.
The general growth in the NFT sector is likely fueling sports interest. Digital art has already seen $100 million in sales just in the top five transactions overall. For sports, the two specific NFTs most commonly sought after are player cards or limited-edition releases of sporting moment video clips.
The value of sports NFTs often relies on how prominent the particular athlete is. Demand is always an applicable factor, and the significance of a particular sporting event plays a huge role in the context of any NFT. If additional content is included within any sports NFT, it certainly helps.
Rights creators and platforms are likely to keep testing out various ownership models in order to ascertain an effective balance. The need to fuel consumer demand has to be contrasted with the maintenance of current intellectual property rights that still respect third-party rights in regards to underlying digital assets.
KuCoin and Fanz have signed a collaborative agreement to promote soccer in the Web 3.0 sphere. Fanz.com is a subsidiary of 00000 Entertainment Commerce Limited. It’s an NFT gateway for gaming and soccer and will be distributing digital assets to online communities. Among the initial NFT projects will be items featuring Diego Maradona and John Motson.
This makes sense considering how soccer, or football as it is known internationally, is the most popular sport around the world. Many nations take serious pride in their national teams in professional league play, and the World Cup is a global event that often rivals the Olympics in terms of followers and fanship.
Many franchises around the world are known for giving away items to their fans for attending certain games. T-shirts are especially popular, but items can range from pennants to pendants. NFTs are now included in the mix for some franchises looking to keep up with the modern crowd interested in something new.
Given the values that sporting items have gone for in physical auctions, it’s only a matter of time before sports NFTs also start breaking records.