Non-Fungible Tokens are one of the most popular and most talked-about investments. Several reports projected NFTs would revolutionize how people watched sports, music, and the arts at this time last year. Many did. The NFT market continued to grow quickly into early 2022 after hitting $25 billion in trade volume in 2021. However, momentum slowed down in May as the cryptocurrency market experienced a price fall. NFTs did, nevertheless, keep growing in acceptance in 2022.
A study by Research And Markets projects that the NFT markets in Africa and the Middle East will increase by 48.3% yearly to reach $3.42 billion in 2022.
Should You Invest in NFTs in 2023?
It’s difficult to ignore how widespread NFTs are in the Middle East. According to the report from ResearchAndMarkets, the NFT sector should expand gradually during the projection period, with a Compound Annual Growth Rate (CAGR) of 34.3% between 2022 and 2028. The report further stated that the NFT expenditure value in the region would rise from $3.42 billion in 2022 to $18.22 billion by 2028.
There are several uses of NFTs in the middle east. In 2021, UAE’s postal service released NFT stamps to commemorate National Day. By introducing the MORROW NFT curatorial platform, Dubai Culture entered the realm of digital assets. The NFT market in Saudi Arabia is anticipated to grow in the next few years as the nation strives to establish itself as a creative powerhouse in the Middle East. Additionally, Egypt has employed tokenized digital assets, mostly in games, digital art, and real estate.
While there are several reasons why NFTs are booming, their exclusivity is the main one. The idea is not brand-new. Rarity and exclusivity have always been key selling features in the luxury industry.
The value of NFTs is influenced by supply and demand. Value decreases when supply increases and demand decreases. Due to the scarcity of NFTs, their value has increased.
The returns on NFTs are uncertain since they are a new kind of asset. The most you can do, therefore, is to reduce the likelihood of losses. Avoid making investments in current popular commodities. Find a broad range of investments instead to diversify risks. Even if most of them fail, you could be fortunate to profit from others.
Investing and Earning NFTs
There are several uses and ways you can earn or invest in NFTs.They include:
DeFi
NFTs will be a part of Decentralized Finance (DeFi) since they are starting to be accepted as collateral for cryptocurrency loans.
Gaming
The emergence of blockchain gaming is anticipated to propel the NFT industry in the middle east, particularly UAE. People are commonly given can earn NFTs for taking part in gaming competitions using blockchain-based gaming. In blockchain gaming, players can earn NFTs through Play-to-Earn and Move-to-Earn mechanisms
Metaverse
NFTs will be widely used in Virtual Events in Metaverses because users will need digital avatars, assets, tickets, and souvenirs to access and enjoy them. Non-fungible tokens will power concerts, conferences, parties, and other get-togethers on extended reality-based platforms.
Final Thoughts
As with any investment, it’s worth tracking the market and staying in the loop on recent events. Whether or not NFTs are truly worth investing in is a question only individuals can answer for themselves. The answer depends on the financial situation, other investments, the current market state, and more factors.
