Sports NFT Marketplace Forecast To 16X, Reaching $41 Billion By 2032 With Gen Z Collectors Leading The Way

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LeBron James, Brett Gardner and Jermall Charlo are the most expensive Sports NFTs

From 2021 to 2022, the Sports NFT market doubled from $1.3 billion to $2.6 billion. It’s also expected to grow at a compound annual growth rate (CAGR) of 36.3% to reach $41.6 billion by 2032, according to a study from Market Decipher.

The report states that the shift from physical to digital fired the sports NFT market. Market Decipher analyst Chandradeep Singh commented on the results:

“NFTs allow fans to get rights of their favorite 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.”

Physical collectibles can be damaged and lose value over time, as opposed to digital ones. Tokenized video clips, player accessories, and cards are the top collectibles that create high returns for holders. In June, the National Hockey League announced they would be releasing video clip highlight NFTs that will be based on current and historic iconic moments.

Statue of LeBron is the most expensive Sports NFT

Based on the data, the NFL, Basketball, Baseball, Soccer, Cricket, and Ice Hockey are the sports that are most in demand in the Sports NFT market. Recently, the Los Angeles Rams released Super Bowl ring NFTs in partnership with Dapper Labs.

According to the report, the Statue of LeBron, Brett Gardner from MLB Champions, and Jermall Charlo from Lions Only GOLD ULTIMATE collection are the three most expensive sports NFTs so far.

The Statue of LeBron James NFT was photographed during a basketball game in 2020 and sold for $21.6 million. It’s the most expensive sports NFT so far. Brett Gardner’s and Jermall Charlo’s NFTs are the second and third most expensive sports NFTs, having sold for $21.28 million and $19.1 million, respectively.

NFTs are Surviving the Bear Market

The sports NFT market brings the popularity of NFTs and sports fanatics together. While this mixture is already solid, the NFT market remained more or less intact during the current bear market. Even though the crypto community is experiencing the coldest winter ever, NFT sales increased by 59% while trading volumes surged by 553% compared to the second quarter of 2021.

RareMint’s Co-Founder Brett Calapp recently shared his opinions on the sports NFT market with CryptoSlate and explained why the sports NFT market is so prone to growth.

Sports NFTs vs. Traditional Sports Collectibles

Calapp identified the major problems of the traditional collectibles market as high fees and perishability.

Good quality sports collectibles are expensive and difficult to reach, even for relatively well-off buyers. Often, the collectibles require minimum buy-ins, which makes it even more difficult for the vast majority to invest in them.

In addition, these hard-to-reach collectibles are in physical form, which makes them prone to decay.

Calapp argues that these problems push younger generations towards innovative solutions such as Sports NFTs. He states:

“Added challenges such as finding authentic collectibles, asset hoarding, and poor discoverability make younger generations turn to different avenues in support of their favorite players and teams.”

Gen Z will lead the way in Sports NFTs

Calapp also mentions the high adoption rates of Gen Z and argues that they will be the main driving force behind the sports NFT market.

According to an article from Forbes, Gen Z has “a high propensity to be more expressive,” which reflects positively on the crypto market. For them, self-expression is the key.

They’re also always looking for new platforms to express their unique identities and want to be closer to their hobbies and interests.

 

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