Brazil ranks 2nd in the global ranking of NFT adoption with 5 million users, according to the survey

The NFT (non-fungal token) market was worth $ 41 billion in 2021, according to the data monitoring company. chain Chainalysis, and Brazil is one of the leading countries in the adoption of this new class of digital assets.

Statista A recent survey by the Digital Economy Compass 2022 shows that 5 million Brazilians have at least one NFT, which is equivalent to 2.33% of the country’s population. Brazil ranks second in the ranking released by data analysis and statistics companies, ahead of the powers of the digital economy, such as the USA, China, Canada and Germany.

Only Thailand is ahead of Brazil. With 5.65 million users, Southeast Asia is the leader in both absolute and proportional numbers. More than 8% of Thais have non-fungal tokens.

Geolocation of NFT holders. Source: Statistician

The success of the NFT in peripheral countries like Brazil and Thailand in 2022 can be explained by the rise of blockchain gaming in the model. play-winin which user performance is rewarded with cryptographic assets that can be converted to fiat currency.

During the boom cycle of the cryptocurrency market last year, the phenomena of the Axie Infinity (AXS) game have become a primary source of income for players, especially in countries with large numbers of low-income people due to economic stress. the slowdown established by the coronavirus pandemic.

The rise of NFTs

Statista’s research also presents the evolutionary line of technology underlying NFTs, the first example of which is from 2012, when it became a market of more than $ 40 billion.

It all started with “Colored Coins,” which were used to merge real-world assets in the Bitcoin (BTC) blockchain, through “Force of Will,” the first blockchain-based game hit in 2016 with the explosion of CryptoKitties. The Ethereum (ETH) network caused serious scalability issues and the launch of CryptoPunks in 2017 to spread non-fungal tokens last year thanks to a collection of profile photos from the Bored Ape Yacht Club (BAYC) and the aforementioned games. play-win.

For now, NFT collectors are the main economic forces behind the growth of the market, accounting for 80% of the trading volume by the end of 2021, according to the report. However, the continuing rise of the gaming industry and the development of decentralized metabersions can lead to a process of market re-emergence.

The economic potential of NFT

The survey also shows the main trends in the economic exploitation of NFTs.

1. NFT-based loans

Liquidity-based loans may be used by NFT holders as collateral to take unauthorized loans in a particular liquidity group, and liquidity providers receive fees generated by transactions.

loans peer (P2P), in which parties directly negotiate contract terms with each other, are also becoming a real alternative for exploring the economic potential underlying NFTs.

2. Fragmentation of NFTs

The NFT division can use two models, according to the report. The first is based on Indexing: A price index is set to divide a given NFT by similar prices for items in the same collection. The second is similar to an index fund that groups different NFTs to study their economic potential.

3. NFT rental

Here, three modalities stand out. Warranty rentals Tenants can deposit assets as collateral in a smart contract to gain access to the NFT.

On the other hand, bulk NFTs markets Lenders include their NFTs in a specific protocol and receive payments as an asset lease.

Pre-determined lease: Tenants become holders of a specific NFT until the end of the lease term and the asset is automatically returned to its owner.

The statistic report also predicts that revenue generated by the NFT will increase by 439% by 2026 compared to 2021.

Cointelegraph Brazil recently reported that NFT’s trading volume has increased even in the wake of incidents that have shaken the cryptocurrency market more widely, despite collections. blue chip Like BAYC, they have been experiencing a drop in their collectors ’base prices since last month.

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