Latin America NFT Market Intelligence and Future Growth Dynamics Databook 2022: Market is Expected to Grow by 48.4% to Reach $5871.1 Million in 2022 - Forecasts to 2028

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Jan 06, 2023, 19:15 ET

DUBLIN, Jan. 6, 2023 /PRNewswire/ -- The "Latin America NFT Market Intelligence and Future Growth Dynamics Databook - 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels - Q2 2022" report has been added to ResearchAndMarkets.com's offering.

NFT industry in Latin America is expected to grow by 48.4% on an annual basis to reach US$5871.1 million in 2022.

The NFT industry is expected to grow steadily over the forecast period, recording a CAGR of 34.8% during 2022-2028. The NFT Spend Value in the country will increase from US$5871.1 million in 2022 to reach US$31994.3 million by 2028.

The non-fungible token (NFT) market in Latin America has undergone strong expansion over the last few years. The presence of Brazilian sports players on NFT marketplaces has supported the widespread adoption of NFTs among the general public.

In addition, the adoption of NFT in the art industry has also grown significantly in these countries. Adoption by visual artists and some well-known names in the music industry are supporting the growth of the NFT industry in Brazil.

With the NFT industry recording strong growth over the last four quarters in Brazil, NFT marketplaces are looking to tap into the high-growth market potential. Consequently, firms are entering into strategic partnerships with Brazilian football players, who have millions of fans across the country and globally, seeking to drive their growth in the NFT market.

As the popularity of NFTs continues to gain rapid momentum globally, the publisher expects an increasing number of sports teams to collaborate and launch NFTs shortly.

NFT marketplaces in Brazil are choosing an eco-friendly way to attract more artists to their platform, which will subsequently help them drive their growth.

Hic et Nunc, one of the leading Brazil-based NFT marketplaces for artists globally, mints artwork on the Tezos blockchain, which consumes only a fraction of the energy of its rival blockchains, such as Ethereum. In addition, the energy-efficient Tezos blockchain costs only 30 cents compared to the US$200 for conducting a single transaction on the Ethereum blockchain.

As the popularity of NFTs continues to grow globally, Brazilian startups and artists are creating NFT collections and raising millions of dollars by selling them.

In March 2022, Lumx Studios, one of the leading startups from Rio de Janerio that develops experiences in the metaverse, announced that the firm had earned R$ 2 million by entering the NFT market with the 55Unity collection. To date, the 55Unity collection remains the largest collectibles project, having sold 3,000 tokens in 28 hours.

In September 2021, Monica Rizzolli announced that the generative art NFT collection, Fragments of an infinite field, was sold for R$28.35 million in an auction.

The publisher expects similar trends to evolve in the Mexican NFT market over two to three years. Several brands have already started to mix NFT in their marketing strategies with increasing frequency. This trend is expected to intensify in the country from the short to medium-term perspective as the awareness and adoption among customers continue to grow in Mexico further. The publisher, therefore, expects the rising adoption of NFTs among brands to drive the market's future growth in the country.

Music festivals are using NFTs as part of their marketing strategies in Mexico. Over the last 12 months, the NFT popularity has grown continuously. In the growing talks about NFTs in Mexico, music festivals have started to use NFTs as part of their marketing strategies.

In March 2022, Cerveza Tecate Pa'l Norte, one of the largest music festivals in Mexico, announced the creation and sale of NFTs. Notably, the NFTs, created specifically for the event and loaded with lifetime benefits for the owners, were part of Cerveza Tecate's marketing strategy.

Football leagues are launching NFT collectibles to generate a new source of income amid the pandemic impact on revenue

In April 2021, Liga MX, the top soccer league in the country, announced that it would launch the NFT collection at the beginning of the 21'/22' season, which was slated to start at the end of August 2021. To launch its NFT collection, Liga MX entered into a strategic collaboration with Bondly, the NFT marketplace which auctioned the NFTs.

Notably, Liga MX is one of the first soccer leagues to launch NFT collectibles. Globally, several individual teams have entered the NFT space and announced the sales of their collectibles.

Football clubs are entering into strategic partnerships with NFT platforms to launch NFT collectibles

Several global football clubs and players are entering the NFT space to launch their NFT collectibles. Similar trends are visible in Mexico, wherein football clubs partner with global NFT platforms to launch their NFTs.

In February 2022, the Atlas Futbol Club announced that the club has entered into a strategic partnership with Sorare, the French NFT platform, allowing fans to trade NFT cards of their favorite players.

NFTs are helping communities to rebuild an underserved Mexican village

Because of its geographical location, Akumal, a small village in Mexico's Yucatan peninsula region, most government funding for developmental projects failed to reach the village. This is why most of the region and the population remained underserved for many years. However, things started to change when a local bakery owner, Jennifer Smith, launched Akumal Arts Festival in 2018.

Notably, the event attracted artists worldwide who visited the region to decorate the town with beautiful images. The art festival caught the attention of local authorities, and now small development work is taking place in the region. However, in 2022, thanks to NFTs, the Akumal Arts Festival is expected to help the Akumal community rebuild the underserved Mexican village.

In January 2022, hundreds of artists worldwide gathered in Akumal for the festival under the sponsorship of Third Rail Art. These artists created murals, organized various community-driven interaction programs, and conducted workshops during the Art Festival.

In April 2022, Third Rail Art dropped animated NFTs of a few selected murals from the festival on its street-art NFT platform. Termed the NFT-4-GOOD collection, 85% of the proceeds from the NFT are expected to go to the Akumal Cultural Foundation. These NFTs were designed by artists who created the original murals in partnership with Cryptic Gallery.

As the NFT market matures and develops in Mexico, the publisher expects more innovative NFT use cases to emerge over the next three to four years. This will keep supporting the market growth from the short to medium-term perspective.

Cryptocurrency exchanges are turning popular Mexican games into a Solana-based NFT experience

Amid the growing number of use cases, raising funds through NFTs is the most common. Many organizations globally are using NFTs to raise funds for non-profit organizations. Notably, similar trends are seen in Mexico, where cryptocurrency exchanges turn the famous Mexican game into a Solana-based NFT experience.

In October 2021, FTX, one of the leading cryptocurrency exchanges, announced that the firm is turning the famous Mexican game Loteria into an NFT-centric game on Solana. Notably, the firm stated that the funds from the project would benefit the non-profit organization. The non-profit organizations that will benefit from the project include the Hispanic Heritage Foundation, the Rising Tide Network, and Latino Community Foundation.

This is a bundled offering, combining 6 reports, covering regional insights along with data centric analysis at regional and country level:

1. Latin America NFT Market Insight Brief
2. Latin America NFT Market Intelligence and Future Growth Dynamics Databook
3. Argentina NFT Market Intelligence and Future Growth Dynamics Databook
4. Brazil NFT Market Intelligence and Future Growth Dynamics Databook
5. Colombia NFT Market Intelligence and Future Growth Dynamics Databook
6. Mexico NFT Market Intelligence and Future Growth Dynamics Databook

Scope

This report provides in-depth, data-centric analysis of NFT Market and below is the summary of key market segments:

NFT Market Size and Forecast by Key Assets, 2019-2028