NFTs seem to be the latest craze, especially in a world that’s gearing up for a new age of the internet; Web 3.0
2021 was by far the best year for fintech and NFT startups seem to have bagged it all. Data compiled by BanklessTimes shows that investment into NFT startups increased from $44 million in 2020 to $2.2 billion in 2021. The increase was by more than 49x.
NFT startup investments recorded biggest jump
NFT startups recorded the highest increase in venture capital funding growth among all other fintech trends. Coming in second were crypto exchanges, whose funding increased 16x from 2020’s to settle at $7.3 bn. Buy Now Pay Later (BNPL) startups had the least increase in funding, which only increased by 2.7x.
Other fintech trends that saw an increase in funding include crypto custody, and revenue-based financing, whose funding increased by 6.2x each. Alternative investments had a 4.9x increase in funding, while open banking increased by 4.6x.
NFTs thrive in the art and music scenes
The interest in the NFT markets shot up following the March 2021 Christie’s auction. American digital artist, Beeple, sold an NFT collection for almost $70 million, making history as the third most expensive artwork to be sold by a living artist.
The sale definitely raised eyebrows and got the attention of crypto enthusiasts. In particular, those in arts and music find digital tokens especially useful in determining ownership and ensuring artists receive their royalties. For this reason, we’ve had giant names in the entertainment industry, like Snoop Dog, making the leap into NFTs and dropping their own collections.
The wave into NFTs is also driven by the fact that major companies are also coming on board. 2021 saw established brands such as Adidas, Nike, and McDonald’s experiment with NFTs. We don’t expect a slowdown in 2022, as more brands look for ways to jump on the wave.