NFT, the market with a CAGR of 187% in two years

Non-Fungible Tokens or NFTs, as they are colloquially known, are the newest trend to come out of the blockchain sphere. NFTs are one-of-a-kind digital certificates that prove ownership of a digital asset. The authenticity of such assets is verified through the blockchain mechanism giving way to a whole new realm of digital collectables.

Blockchain’s recent innovation is raising some eyebrows, as the value of NFTs has grown significantly over the last few years. According to data presented by TradingPlatforms.com, the market cap of NFTs increased by 138.8% YoY in 2020 at a CAGR of 187.28% from 2018 to 2020.

In economic jargon, a non-fungible asset is a non-tradeable asset and is considered one-of-a-kind. In essence, owning an NFT means you own an original of whatever digital asset. While the digital asset can be replicated many times by anyone, only the owner of the NFT for that asset is the true single owner of that asset. The authenticity of each NFT is verified by the blockchain ledger mechanism.