NFTs still promising for brands, despite rise and fall of hype: report

Major sectors, like sports and luxury, continue to develop NFT-backed applications.

Businesses and institutions continue to have confidence in the benefits of non-fungible tokens (NFTs), despite the ebb and flow of the hype, a joint report finds.

According to Bain & Company, the adoption of NFTs on a global scale has been constant since June 2022, underlining that mass implementation has not finished and instead will continue to progress over time.

The usage of NFTs varies across industries, but the sectors in sports, ticketing, luxury, retail, gaming and art have increasingly developed NFT-backed applications. Their reliance falls on its expanded accessibility, transparency, convenience, accuracy and protection from fraud. The report indicates that with several prominent sectors adopting NFTs, more industries will examine and adopt the Web3 technology.

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“To stay ahead of the curve, companies can learn from those experiences by early adopters and implement NFT strategies that will help them to identify and realize how the web3 technology can benefit their business,” Juan Redondo, associate partner and Web3 and Financial Services practices specialist of Bain, said.

The report also noted several factors that may determine the course of NFT adoption, such as clear regulations, the Web3 ecosystem, the macroeconomic environment, internetwork capabilities, user experience, digital transformation, track record and IP holders. With precise consideration, NFTs may reach their full potential.