NFTs to $300 Billion in 2030? Morgan Stanley’s New Research
What are your thoughts on NFTs? With non-fungible tokens being such a niche market at the moment, it seems like certain influencers are always met with a level of skepticism when they talk about NFTs utility in the long run… but with all this talk about the metaverse finally hitting the mainstream headlines, it looks like some serious players are starting to weigh in on NFTs, and they’re surprisingly bullish.
Morgan Stanley just released a report on NFTs, specifically commenting on how company’s with strong IP (intellectual property) can capitalize on the market as metaverse plans turn into reality. The bank is estimating that the total market for NFTs will grow to around $300 billion by 2030.
The report says, “NFTs and social gaming present two near-term opportunities for luxury brands, allowing them to monetize their vast IP (intellectual property) built over decades.”
Luxury brands could see their total addressable market grow by $10 billion to $20 billion by entering the interesting space of digital goods and ownership. The entire metaverse gaming and NFT opportunity could lead to a $56 billion revenue potential in the luxury market alone, according to Morgan Stanley estimates.
Still skeptical? Well, take a look at Dolce & Gabbana’s recent NFT sale. The company sold nine unique NFTs last month, bringing in a whopping $5.7 million for its digital goods… And that’s only nine NFTs. After all, if Gucci, Louis Vuitton, DG, and Yves Saint Laurent are popular status symbols IRL (in real life), then why wouldn’t they be the same in virtual worlds?
One of the main reasons why these types of brands are well-positioned to take advantage of the NFT and metaverse gaming opportunity is due to their brand demographics. Hype-beast culture is largely centered around the younger population, where expression and status often come from the brands you decide to wear and identify with.
Since metaverse gaming and NFTs in general usually appeal to those who are younger and more in touch with the technology, there are certain synergies that can help these companies grow their reach and brand virtually.
Which companies do you think will be able to capitalize on the growing NFT market the most? Let us know your thoughts in the comments!