Sports NFT market doubles to US$ 2.6B in 2022
The sports NFT market doubled to US$ 2.6 billion in 2022 and is forecasted to reach 41.6 billion by 2032, growing at a compound annual growth rate (CAGR) of 36.3% during 2022 to 2032, a study from market research and consultancy firm Market Decipher shows.
The study, titled ‘Sports NFT Market Size, Statistics, Growth Trend Analysis, and Forecast Report, 2022 – 2032’ analyzed growth trends across sports NFT verticals. It found that digitalization of trading cards and limited-edition video NFTs are two major trends driving the industry’s growth, finally pushing the sports collectibles industry.
Trading cards, accessories, collectibles and video clip NFTs have met unprecedented success this year is also due to sports enthusiasts’ growing participation in the NFT sector. Sports enthusiasts gain rights when they collect sports NFTs like trophies, autographs, awards, and other sports equipment that are converted into unique NFTs. According to the report, tokenizing these sports collectibles into NFTs will extensively grow the NFT market with huge profits.
Chandradeep Singh, analyst at Market Decipher, explained that,‘NFTs allow fans to get rights of their favourite sports moment by acquiring NFTs of such video moments. Trading card, which is already a huge market share holder in sports memorabilia market shows a speedy shift from physical to digital. NFTs further creates a new revenue stream for athletes, leagues, and teams of various sports, with current demand highly concentrated to the U.S. Various blockchain companies are allowing teams and athletes to create their own sports NFT marketplace, thus easing the way to NFT industry.’
The study identified NBA’s Top Shot and NFL's blockchain project as the competitors revolutionizing the sports NFT industry. These projects’ growth were assisted by collaboration and partnerships between sports and NFT industries.