NFTs played a major role in crypto and blockchain's mainstream success in 2021.
The recent influx of venture capital into non-fungible token projects underscores the need for regulators to pay close attention to this area. It was announced Tuesday that Metaversal has closed a $50 million funding round designed to support its expanding investment capabilities in nonfungible tokens (NFTs) and metaverses.
Investment firms CoinFund and Foxhaven co-led the Series A round with Collab+Currency, Dapper Labs, Digital Currency Group, Franklin Templeton, Rarible, Theta Blockchain Ventures, Galaxy Vision Hill and others participating. As part of the plan, Metaversal will acquire high-profile digital collectibles from its venture studio, as well as support projects that will be boot-strapped by the company. Metaversal also used the funding to sign agreements with Rarible, an NFT platform, and Flow, a blockchain developed by Dapper Labs. Flow, which powers NBA Top Shot and CryptoKitties, has also been backed by Google and Filecoin, among others.
NFTs played a major role in crypto and blockchain's mainstream success in 2021. According to industry data, the sector generated over $14 billion in sales in the last year, with digital art and digital collectibles comprising 91% of all transactions. Up to now, digital art has dominated the NFT market. However, new music NFTs and fashion collectibles may soon change the market's dynamics.
As of Q3 2021, venture capitalists have invested $2.1 billion into projects in the NFT space, making this a major growth vector. Approximately 40% of NFT-focused deal activities were handled by Silicon Valley venture firm Andreessen Horowitz, according to PitchBook. According to reports, venture capital firms invested more than $17 billion into crypto- and blockchain-focused startups in 2021's first 10 months, three times as much as in 2020.
The fashion market has invested millions of dollars in NFT, the wear and earn NFT concept to expand in 2021 could lead to a transformation of earning money from traditional means to utilizing NFT platforms to stay current with technology and increase the value of the business.