4.1 Sports NFT Market

Sports NFTs emerge as the 'goose that lays the golden egg'

NFTs(Non-fungible tokens) have been in the spotlight as a new digital asset since the beginning of last year, and have become a marketing and new business model craze in economies and industries around the world, as well as in culture and sports.

In particular, the sports industry has been actively utilizing NFTs as a way to create new markets after the COVID-19 pandemic and to find a way to revitalize the macroeconomic outlook, which is worried about a global recession. This is because sports NFTs are considered to be a new revenue model after broadcasting fees, admission tickets, sponsorships, and sales of sports goods.

For example, the National Basketball Association became the first sports league to launch its own platform, NBA Top Shot, which allows fans to buy, sell, and trade NFTs.

This growing use of NFTs in sports has attracted attention because of its potential for growth if it fulfills the needs of fans, especially the MZ generation.

Cpyptoslate, an international blockchain media outlet, cited a report by Market Decode that the sports NFT market has more than doubled year-on-year and is expected to top $41.6 billion in revenue by 2032.According to a research report by Market Decode, the revenue of the sports NFT market doubled from $1.3 billion in 2021 to $2.6 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 36.3%, reaching $41.6 billion by 2032. The report analyzed that the revitalization of the sports NFT market is driven by the transition from physical to digital.

"NFTs allow fans to acquire the rights to their favorite sports moments by acquiring NFTs of those video moments," said Market Decode analyst Chandradeep Singh, adding, "Trading cards, which already have a large market share in the sports memorabilia market, are an example of the rapid shift from physical to digital.

"Unlike digital collectibles, physical collectibles can typically be damaged and lose value over time. However, tokenized video clips, player accessories, and cards can be some of the most valuable collectibles, generating high returns for their owners.

According to various relevant data, the most in-demand sports NFTs in the market today include NFL, football, basketball, baseball, cricket, and ice hockey.

According to the report, three of the most expensive sports NFTs to date are LeBron's statue, Brett Gardener of the MLB Champions, and Jermall Charlo of the Lions Only GOLD ULTIMATE collection.

The most expensive sports NFT ever sold was a statue of LeBron James that was photographed during a basketball game in 2020, which sold for $21.6 million. Brett Gardner's and Jermall Charlo's NFTs are the second and third most expensive NFTs, selling for $21.8 million and $19.1 million, respectively.

As is well known, the sports NFT market is uniting the popularity of NFTs and the passionate fans who follow sports. This marriage is already going strong and is providing the impetus for the sports NFT market to thrive in the current bearish market for NFTs.

In fact, despite the crypto community currently experiencing the coldest winter on record since June, sports NFT sales are up 59% and trading volume has surged 553% compared to Q2 2021.