SNEAK PEEK
- A recent study found that the Japanese NFT market has expanded despite the crypto winter.
- In October and November, blockchain games and metaverse projects raised $534 million, with $55 million worth of NFT in-game transactions.
- Fumio Kishida, the prime minister of Japan, earlier announced plans to raise investments in NFTs and the metaverse.
According to a new study, the Japanese NFT market has continued to grow. It anticipates reaching a $1.36 billion valuation by the end of the year, despite the chaos, panic, and uncertainty sweeping the cryptocurrency market since May.
NFTs are infamous for influencing profit and speculation. However, due to community involvement, sound trading practices, and other factors, the asset class has seen an increase in stability in the last quarter of the year.
Blockchain games and metaverse projects raised $534 million in October and November, with total NFT in-game transaction volumes hitting $55 million. The Japanese markets have expanded as well, reflecting these encouraging tendencies.
The Japanese NFT market continues to demonstrate consistent development despite gloomy attitudes and current contagions like FTX, estimating an annual growth rate of 38.7% until 2028.
According to a Q3 analysis from Non-Fungible, most players in the business have had difficulty making money from NFT trading, with a projected weekly loss volume of $50 million. However, the current figures are much better than the $250 million weekly loss volume that was anticipated for May.
Globally, the NFT market has had difficulty posting good results in Q3, with losses varying depending on the market segment from $1 million to $5 million each week. In Q3, the worldwide NFT gaming market anticipated losses of $5 million to $8 million per week.
In a policy statement earlier, Japan’s Prime Minister Fumio Kishida declared intentions to increase investments in NFTs and the metaverse.
According to the Prime Minister’s Office of Japan, Kishida has stated that the nation will increase its investments in digital transformation and increase the use of Web3 services. However, at the same time, GameFi grew by over $320 million despite market conditions and events. In November, there were more than 800,000 Unique Active Wallets (UAW) transactions every day.
It’s interesting to note that while the majority of Japanese people have generally been apprehensive of cryptocurrencies and NFTs in general, a similar percentage has shown interest and actively supported the development of the sector.
Even though the NFT sector is still young, big international players are nevertheless interested in making investments and building the necessary infrastructure.
