Survey shows Brazil ranks second globally in NFT adoption with 5 million users

The NFT (Non-Fungible Token) market will be worth $41 billion in 2021, according to data monitoring firm on-chain Chainalysis, Brazil is one of the countries leading the adoption of this new digital asset.

A recently released Statista survey titled Statista Digital Economy Compass 2022 shows that 5 million Brazilians own at least one NFT, equivalent to 2.33% of the country’s population. Brazil is in second place in a ranking published by the data analytics and statistics firm, ahead of digital economy powerhouses such as the US, China, Canada and Germany.

Only Thailand is ahead of Brazil. With 5.65 million users, the Southeast Asian country leads the list in both absolute numbers and proportions. Over 8% of Thais own non-fungible tokens.

The geographic location of the NFT holder. Source: Statista

The success of NFTs in neighboring countries such as Brazil and Thailand in 2022 can be explained by the rise of blockchain gaming in the model. game to make moneyin which the user’s performance will be rewarded with encrypted assets that can be converted into fiat currency.

During last year’s bull cycle in the cryptocurrency market, the phenomenon of gaming Axie Infinity (AXS) has become a major source of income for gamers, especially in economically stressed countries with large numbers of low-income people and the slowdown caused by the coronavirus pandemic.

The rise of NFTs

Statista’s research also shows the evolutionary path of the underlying technology of NFTs, with its first examples dating back to 2012 until it became a $40 billion-plus market.

It all started with “colored coins” for aggregating various real-world assets on the Bitcoin (BTC) blockchain, the first successful “willpower” through blockchain-based games, CryptoKitties in 2016 The explosion caused serious scalability issues for the Ethereum (ETH) network and the launch of CryptoPunks in 2017 due to the collection of profile pictures such as the Boring Ape Yacht Club (BAYC) and the already mentioned games, and last year’s Irreplaceable Generation Popularity of coins game to make money.

Currently, NFT collectibles remain a major economic force for market growth, accounting for 80% of transaction volume by the end of 2021, the report said. However, the continued rise of the gaming industry and the development of a decentralized metaworld may trigger a process of market rebalancing.

The economic potential of NFTs

The survey also identified key trends in the economic utilization of NFTs.

1. NFT-based loans

Liquidity pool-based lending allows NFT holders to use their assets as collateral in a given liquidity pool to borrow without permission, while liquidity providers receive fees for transactions.

loan peer to peer (P2P), in which two parties directly negotiate contract terms, is also emerging as a real alternative to exploring the potential economic potential of NFTs.

2. Fractionation of NFTs

There are two models available for NFT splitting, the report said. The first is index-based indexing: build a floor price index to segment a given NFT based on similar prices of items in the same collection. While the second is similar to an index fund, different NFTs are grouped to explore their economic potential.

3. NFT rental

Here, three modes stand out. Collateral leasing allows lessees to deposit assets as collateral in smart contracts to gain access to NFTs.

On the other hand, packaged NFTs are market Lenders deposit their NFTs into some kind of agreement and receive payments in the form of asset leases.

Predetermined term lease: The tenant temporarily becomes the holder of an NFT until the lease term expires and the asset is automatically returned to its owner.

The Statista report further predicts that global revenue generated by NFTs will grow by 439% by 2026 compared to 2021.

As Cointelegraph Brasil recently reported, even amid the turmoil that rocked the cryptocurrency market more broadly, NFT volumes have increased, albeit collected. blue chip Like BAYC, the reserve prices for their collectibles have been dropping since last month.

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