Analysis of the non-fungible token market

Abstract

Object: The purpose of this study is to understand and analyze the financial future of Non-Fungible Tokens (NFTs).

Methods: This research examines the market and key features of non-fungible tokens. Some of the data collected on this topic to date have been analyzed, and assessments of the development and current state of the world's NFT market have been made. The theoretical and methodological basis of the research is scientific works of foreign scientists and statistical reports of Statista and DOIT Software organizations. Analysis, induction and deduction, comparative analysis methods were used in the article.

Findings: While NFTs are typically used to determine ownership of digital artwork or game materials, the challenge of determining ownership and commercialization of all types of user-generated content in the digital world is emerging as a new field. Although this ownership may relate to limited or unique works of art, it is also considered a party to the smart contract. NFTs have taken their place in the digital economy with increasing market share in 2021. Sales of NFTs, which saw significant growth in artwork and contemporary art in particular, declined slightly in 2022, but are forecast to increase again in the coming years.

Conclusions: NFT stands out as a revolutionary technology in asset tokenization by digitizing traditional asset classes. NFTs offer investors diversification and liquidity by providing uniqueness to a wide range of assets, from works of art to digital collectibles. Additionally, as part of financial innovation, NFTs improve the speed and security of transactions through the use of smart contracts, thereby enabling more efficient delivery of financial services.