Market Cap of NFT Tokens Now Stands at $21billion
- Between 2021 and 2026, the global non-fungible token market will grow by 40%.
- Tezos tokens are on the rise, while Apecoin and Decentraland hold strong.
The total number of NFT buyers and sellers has risen steadily since Q2 2020. CryptoMonday.de estimates that there were 950,000 NFT transactions in Q1 2022, up from 627,000 in Q4 2021. By May 1, 491K addresses were using NFTs. That puts Q2 2022 on track to grow its quarterly number of participants.
According to a CryptoMonday.de analysis, the market cap of NFT tokens stands at $21.4 billion as of May 2022. It also predicts that the market will grow at a Compound Annual Growth rate (CAGR) of roughly 40% in the next five years.
During the forecast period, we estimate the market to grow at a CAGR of 40.2 percent to $82.43 billion in 2026. More artists are adopting NFTs because they use blockchain to guarantee the authenticity of their work.Jonathan Merry, CEO Cryptomonday
What are the most valuable tokens now in terms of market capitalization?
There are a variety of digital and physical assets that NFT tokens can represent. The three most valuable NFT tokens, as measured by total market capitalization as of May 27, 2022, are Flow (FLOW), ApeCoin(APE), and Decentraland (MANA).
FLOW is the most valuable of all the NFT coins and tokens. It has a market capitalization of nearly $2.476B at the time of writing. At over a billion coins, the token also has one of the largest circulating supplies. The token runs on the Flow network, a new blockchain supporting next-gen dApps, games, and cryptos.
The Flow network prides itself on being the greenest Web3 network today. It claims to have a carbon footprint that's less than that of a regular social media post. It is able to achieve that through its unique Proof of Stake consensus mechanism HotStuff.
APE which has a market cap of $1.769B takes the second slot. The ERC-20 governance and utility token supports decentralized community building on Web3. Currently, the coin has no use outside of ApeCoin DAO membership. But the DAO’s roadmap shows that this may change in the future.
On the other hand, Decentraland (MANA) has a market cap of $1.728B. It is a metaverse, a virtual world where people can interact through AR, VR, and the internet. Here users exchange parcels of land as NFTs that serve as proof of ownership. MANA is an ERC-20 token allowing users to purchase land and other metaverse assets and partake in governance.
Are there any significant developments on the horizon?
The NFT market is rapidly evolving. Many organizations in this space are focusing on establishing new platforms to provide customizable exposures. One of these, Tapinator, unveiled NFT500, a premium casting service and collection platform for NFTs, in March 2021.
"Casting" refers to viewing digital art as NFTs on a physical display. The service will go live this summer. Tapinator says it will release a sample mobile app later this year to go along with it. Experts project that digital artwork's rising popularity will fuel the NFT market's expansion in the coming years.