Perhaps unsurprisingly, personality-focused sports leagues and star sports leagues have sought to enter the NFT world. NFTs, or Non-Fungible Tokens, are a great way to monetise passion, and so shortly after NFTs were first introduced to areas like art and gaming, NFTs took the sports world by storm. Non-fungible tokens (NFTs) have made great strides in the sports industry this year. According to the creators of the NFT, in the coming months, sports NFTs will be integrated into video games and enhanced with rare trading cards, making these items even more popular.
While other expensive NFTs exist, most of the current NFT market is focused on digital art and sports cards. In 2022, the most common and lucrative use of NFTs in the sports industry will likely be the sale of limited edition sports video clips or playing cards. The value of each NFT will depend on the importance of the athlete, the importance of the event, the NFT and any additional content included in the application. According to a recent Deloitte report, as many as 5 million sports fans will buy or receive NFTs as gifts by 2022, with video clips and limited-edition player cards being the most common and lucrative, according to research.
Deloitte predicts that by the end of 2022, between four and five million sports fans worldwide will buy or receive an NFT sports collectable. The consulting giant’s forecasts released that sports-related NFTs will account for more than $2 billion in transactions next year.
Other sports have exploded and vied to launch their own NFT offerings in the broader collectables boom. In some cases, players and leagues are reaching out to each other to determine who gets what percentage of potential loot. Despite this, it is clear that significant crypto and NFT companies have invested resources in signing sponsorship agreements in the sports world, both with teams and individual athletes.
Sports NFTs sell like crazy because fans have always wanted to buy exclusive tokens associated with their teams, such as an autographed jersey or a signed baseball bat. This is just a digital extension of that research, NFT creators say. Sports NFTs allow fans to purchase digital collectables of their favourite teams, players, stadiums, or game achievements. NFT sports can be used to develop new sports games, create sports-themed virtual worlds, or create new ways for fans to interact with sports content.
Meanwhile, NFTs and related technologies have business applications in addition to collectables that Major League Baseball and other sports and companies are exploring. According to Zach Binkley, an economics professor at Loyola University Chicago, NFT sports may not rise too much unless professional leagues like the NBA and NFL start offering fans exclusive opportunities because they have certain digital assets.