Non-fungible token (NFT) transactions are expected to increase from $24 million to $40 million by 2027, according to a new study from Juniper Research.
This scenario is based on the plausible medium adoption of metaverse by global brands.
Despite NFTs offering a new growth channel, the research stated that vendors ought to be cautious not to operate in unregulated environments, which are home to scams and fraudulent activities.
Environmental issues were also raised as a major concern, with the current way transactions are facilitated on the blockchain creating massive energy usage.
For consumer-centred businesses, the research pointed out that creating NFT-based content would give them a competitive advantage based on the changing needs of the younger and tech-savvy demographic.
An NFT is a unique token that exists on the blockchain, meaning it cannot be replicated. This unique token could represent real-world items like artworks or music, with the ability to be traded with a transparent transaction history.