Nonfungible tokens were characterized as an essential invention during the epidemic, when stringent lockdown restrictions restricted live sports, recreation, and song concerts, according to the Aug. 23 article.
Simultaneously, NFTs are developing at a period when fans are prepared to embrace digital communities focused on their favorite musicians or sports teams.
Professional sports were particularly severely affected by the epidemic, with top leagues globally losing a projected $18 billion in income. This, as per Visa, contributes to the “requirement to diversify income and concentrate on technology to realign companies for growth possibilities and to gain the support of fans.”
In this regard, “NFTs allure collectors, spectators, clubs, franchises, and expertise,” according to the study. NFTs, especially, have the potential to turn out into major sources of fan interaction, customer relationship management, and novel income streams.
Collectibles, art, and gaming were the most common NFT application cases found. The whitepaper was published along with Visa’s revelation that it had bought its initial NFT, CryptoPunk 7610, for $150,000. CryptoPunks is a library of 10,000 distinct NFTs that are kept on the Ethereum platform as evidence of possession.
As per industry sources, 2,519 CryptoPunk memorabilia were auctioned in the last 30 days, earning a total of $467.4 million. The top sale during that time period was CryptoPunk 7252, which garnered 1,600 ETH, or $4.5 million. Aside from the CryptoPunk frenzy, NFTs in several other areas are becoming more prominent.
Total NFT sales are expected to surpass $900 million in August alone, setting a new industry high. The earlier high was achieved in May, when aggregate NFT sales volume hit $255 million. In May, cryptocurrency markets hit fresh historical highs before undergoing a multi-month slump.
Considering the payment company’s increasing emphasis on cryptos, Visa’s entry into NFTs is unsurprising. The business recently signed a deal with crypto focused platform Zipmex, which will provide additional crypto payment connectivity in the Asia-Pacific area. Visa reiterated its commitment to developing cryptocurrency settlement and fiat on-ramps in January 2021 in order to assist the virtual asset class.