Research Outline

Non-Fungible Tokens (NFTs) - Market Analysis


To get informed about the global market and scope for non-fungible tokens (NFTs).
  • Find the market size for the NFT market and the breakdown of the market by type of NFT (art, collectibles, music, etc.)
  • Identify who the typical buyers of NFTs are.
  • Explain the opportunities and challenges in the market. An ideal response could include a SWOT analysis of the market.
  • Find how companies can capitalize on the new trend of NFTs.
  • Find case studies of successes.
  • Explain how NFTs compare to physical collectibles.
  • Explain why people buy and pay more for NFTs.
  • Find the unique differentiators in the industry.
  • Provide an overview of the industry (what the industry is all about).

Early Findings

Data Availability

  • The initial round of research indicates that there is a wealth of information available on this topic. However, more research needs to be carried out to get a more profound overview of the NFTs industry and cover all the requested data.
  • Initial research indicates that the profile of the typical buyers of NFTs worldwide is not available in the public domain. Hence, we have pivoted the research to look for other helpful information relevant to the project goals. We provided the demographic profile of typical NFT buyers in the United States.

NFTs: Market Size

  • In 2020, the non-fungible token (NFT) market tripled. The total sales volume traded in NFT increased from $159.142 million in 2018 to reach $250.846 million in 2020, which is an increase of 299% from 2019. "The unprecedented volume of USD transactions during 2020 largely echoes the increased value of the Cryptocurrency market, which began to rise during 2019. This gradual exit from the Crypto Winter has automatically led to an increase in the value of assets in USD. This increase in USD volume is also supported by new NFT projects and users coming into the Ecosystem."
  • The number of active wallets in the NFT industry increased from 110,551 wallets in 2018 to reach 222,179 wallets, which is an increase of 97.09% from 2019. Active wallets are the wallets that have interacted with an NFT Smart Contract.
  • As of 2020, there were 74,529 NFT buyers and 31,504 NFT sellers.
  • The market cap for global transactions of NFTs increased from $40.96 million in 2018 to reach $338.04 million by 2020.
  • "In 2021, the value of NFTs for gaming declined, but those for arts increased."

NFTs: Market Breakdown

  • In 2020, the distribution of dollar sales of NFTs was as follows:
    • Metaverses: $14,020,406 (25%)
    • Art: $12,947,341 (24%)
    • Gaming: $12,907,165 (23%)
    • Sport: $7,143,501 (13%)
    • Collectibles: $6,168,973 (11%)
    • Utility: $2,101,244 (4%)

NFTs: Buyer Demographics

  • According to the Morning Consult survey, the typical NFT buyers in the United States are millennials. In fact, millennials are most likely to engage in NFT collecting, with 23% saying they do so, compared to 8% of Gen Xers, 2% of baby boomers, and 4% of Gen Zers.
  • The survey found that 15% of male respondents collect NFTs, compared to 4% of female respondents.
  • Thus, the typical NFT buyers in the United States are millennials and men.


  • Within the first hour, we have been able to provide insight into the market size and sales breakdown of the global NFT industry. We have also presented some demographic traits of typical NFT buyers in the United States.
  • We defined the unique differentiators as the characteristics that make NFTs different from other collectibles. If another definition is required, please let us know in any reply.
  • For all our research, we would focus globally.
  • For a deeper dive into the remaining requested data, we recommend further research. Details on our recommended research paths have been provided in our proposals below. Please select one or more of the options provided in the proposed scoping section below.