How big is the space of the NFT market, what are the current problems, where is the direction, and how will it be laid out in the future?


New Member
Jan 6, 2022
Recently, as the encryption market continues to heat up, holding digital encrypted assets in hand will not only show that it is different from others, but also reflect its value.

What is NFT? What are the characteristics compared to other tokens?

NFT, Non-Fungible Token, is a special digital asset.

In the blockchain space, there are many types of tokens: ETH for Ethereum, Bitcoin, BNB for Binance, etc. Many tokens can be divided into two categories: homogenized tokens (such as Bitcoin, Ethereum, etc.) and non-fungible tokens (such as NFT).

There are two main differences between NFT and homogenized tokens (such as Bitcoin and Ethereum):

First, each NFT has a unique and unique identifier, which cannot be interchanged with another one, but other common tokens (Bitcoin, Ethereum, etc.) are homogeneous, that is, there is no difference, interchangeable.

Second, due to the non-homogenization and uniqueness of each NFT, the smallest unit of NFT is 1, and it is indivisible, but other common tokens are divisible.

Based on the above two characteristics, NFT also has two advantages:

First, each NFT is bound to a certain collection of the holder, and cannot be copied, so it is naturally scarce;

Second, NFT is equivalent to a public ledger, and everyone can verify the authenticity and ownership of assets.

Why is NFT so popular?

Tracing the source of the recent rise in popularity of NFT may originate from the fact that on March 6th, Twitter co-founder and CEO Jack Dorsey transferred his first tweet in the form of NFT assets and sold 1630.58 ether. For the price (equivalent to $2.9 million), whoever buys the NFT can get the time the tweet was posted, the text content, a timestamp, and a digital signature from the creator’s encrypted wallet address.

In 2021, digital artist Beeple stitched his life photos taken over 5,000 consecutive days into a JPG file and sold the file as an NFT, which was finally sold at Christie's auction house for $69.34 million. The price set a new record for a virtual art auction.

In addition, the album released by the American rock band Lyon Royal Family has generated sales of more than 2 million US dollars, Tesla founder Musk sold his tweets and music on the NFT trading platform, and his girlfriend was also on a blockchain platform. NFT art for sale and $6 million in 20 minutes.

On the one hand, the high turnover and the exposure brought by celebrities joining made NFTs quickly become popular, attracting many people to participate;

On the other hand, after the NFT work is sold, for each subsequent resale, the original author can get a certain percentage of the remuneration, which is generally 10% of the selling price by default (the specific percentage, which can be created by the original author in the creation of the NFT) time decision), and will not be distributed by the agency, which also gives NFT a strong advantage in copyright protection, so it is also supported by many creators.

The superposition of multiple factors has made NFT quickly popular.

What is the use of NFT?

In theory, NFTs can be applied to any field that requires unique authentication. Examples are as follows:

1) The field of intellectual property rights.

For any intellectual property rights, such as song copyright, film and television copyright, picture copyright, painting copyright, invention patent, etc., NFT can be used for authentication. , which confirms and identifies the copyright of the asset.

2) Certification of various certificates and certificates.

NFT can be used as digital authentication for various documents, such as ID cards, academic certificates, driver's licenses, real estate certificates, etc. It can not only be used to verify the authenticity of the certificate, but also can prevent the certificate from being tampered with or stolen.

3) The field of financial instruments.

On the one hand, financial bills are unique due to bill coding, and on the other hand, financial bills involve financial transactions and capital exchanges, and require higher security. Therefore, financial instruments can be combined with NFT, which can be tracked while facilitating the confirmation of rights.

4) The field of taxation.

In the case of tax returns, enterprises and individuals need to submit a series of supporting materials such as invoices. In order to improve the efficiency of taxation work, NFT can be used to mark relevant certification materials to ensure authenticity.

5) Game field.

For gamers, the importance of virtual assets in games continues to increase. In-game pets, weapons, clothing, and other items can be coded through NFTs to increase uniqueness and facilitate verification of ownership. The smashing crypto cat in 2018 uses NFT technology. By assigning a special number to each cat, it makes it a unique cat.

How big is the market space of NFT?

According to the industrial life cycle theory, the evolution process of each industry has to go through the initial stage, the growth stage, the mature stage and the decline stage. At present, NFT is still in its infancy, and consumer education and user training are more important in the initial stage. With the continuous expansion of the user base, NFT will gradually enter the growth stage from the initial stage, and the market size of this industry will also usher in rapid growth.

According to statistics, the value of the entire NFT market did not exceed $42 million three years ago, but by the end of 2020, the value of the NFT market has grown rapidly to $338 million, an increase of 705%. The rapid growth during this period is mainly due to the initial stage of the NFT industry. , the market size base is relatively low, with the gradual emergence of user training results, the low base will usher in higher growth.

As of the end of February 2021, the sales of NFT assets had reached about $310 million, which was basically close to the level of $338 million for the whole of 2020. At the same time, based on the previous user training, we believe that the market's recognition of NFT will be significantly improved this year. Assuming that the average monthly transaction value of NFT in 2021 is 1.3 times the average transaction value of the previous two months, then 21 years The annual NFT market space will be as high as 2.418 billion yuan, a year-on-year increase of 615.4% compared to 2020.

In the medium and long term, NFT can be widely used in many fields such as intellectual property, physical assets and financial instruments. The market space is closely related to its penetration rate in downstream applications. With the increase in the penetration rate of NFT in related fields, the NFT market size still Huge room for growth.

Problems existing in the current NFT market

Take Opensea, the world's largest NFT trading market, as an example. Nearly 30 million NFT commodities are updated online for sale every day:


1) Complete variety

2) Link wallet, one-click generation (convenient)

3) Huge user base


1)Too many types and inconvenient to search (It is still in the era of Amazon 1.0, and it is very troublesome to search something)

2) Click farm (the most famous is the self-buying and self-selling event of TRON BOSS Sun)

3) Gas fees are too high and congested (especially obvious when users create NFTs intensively and trade frequently or at special times in some time zones)

In addition to opensea's NFT trading market, Binance and OKEX have also launched NFT trading one after another. Of course, many platforms are building their own NFT trading markets, so I won't list them all here;

We all know that many NFTs now come from games based on blockchain technology, so the word Gamefi has become very popular recently, but now there is also a very real problem. In GameFi games, the identities, characters, and props that everyone obtains are separate NFTs, and it also has investment value when used in the game, but if you need to jump out when selling NFT and go through the release and listing process again in a trading market such as opensea, it will be a bit troublesome, and now there are so many other than opensea. If there are multiple NFT trading markets, do you have to release them over and over again, and at the same time hold the tokens of the NFT trading market;

PUGG's metaverse, analyze this problem, PUGG based on UE4 Unreal Engine technology solves this virtual game that integrates entertainment, social interaction, and the same space, all users only need to have a virtual citizen + CALIT,

You can experience all the scenes and facilities in the planet, except that you can get token rewards by doing tasks to generate electricity for the planet,

At the same time, you can also meet like-minded friends through your own preferences for NFT, you can invite friends to go to the bar together on this planet, and you can also invite friends to be a guest at your home in the PUGG Metaverse.

Visually show it to friends, and more importantly, through cross-chain technology, NFTs on all NFT trading platforms can be reflected in their digital wallets, and NFTs on all platforms can be browsed and purchased at one time in PUGG's trading hall, which solved the pain of all collectors;

In the future, I believe that there will be more high-quality projects and technologies to promote the evolution of the encrypted digital market together, we will wait and see.