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 been making waves as a marketing and new business model in economies, industries, culture, and sports around the world.

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 out of the macroeconomic outlook, which is worried about a global recession.

In the case of sports NFTs, it is considered a new revenue model after broadcasting fees, admission tickets, sponsorships, and sales of sports goods.

A typical example is the National Basketball Association's launch of the NBA Top Shot, the first platform in the sports league to allow fans to buy, sell, and trade NFTs. As the use of sports NFTs is actively expanding, it is attracting attention due to the prospect of multiplying the growth potential if it meets the needs of fans, especially the MZ generation. Cpyptoslate, an international blockchain media outlet, cited a report by Market Decode, which found that the sports NFT market has more than doubled year-on-year and will exceed $41.6 billion in revenue by 2032.

According to a research report by Market Decode, revenue in 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 will 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 transition 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 NFL, football, basketball, baseball, cricket, and ice hockey are currently the most in-demand sports NFT markets.

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

The most expensive sports NFT ever sold was a statue of LeBron James, which was photographed during a basketball game in 2020 and sold for $21.6 million, while 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 bringing together the popularity of NFTs and sports fanatics. This marriage is already strong and is providing the impetus for the sports NFT market to thrive in the current bear market for NFTs.

In fact, despite the fact that the crypto community is 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.