Despite Bear Market, A ₱140B Growth in NFT Industry is Expected — Report

The report attributes NFT’s growth in the Philippines to the country’s high literacy rate & early adoption of new technologies.

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  • A new report says that the non-fungible token (NFT) industry in the Philippines is expected to grow in the next few years, reaching around ₱143.2 billion (US$2598.3 million) by 2022.
  • The report also predicts that the NFT industry in the Philippines will continue to grow at a steady rate through 2028, with a value of ₱705 trillion (US$12796.4 million) by that time.
  • The report suggests that the NFT market in the Philippines is growing because people in the country are generally interested in new technologies and enjoy participating in events and webinars related to NFTs, as well as playing NFT-based games.

As the end of the year draws near, a recently released study concluded that the non-fungible token (NFT) industry in the Philippines is expected to grow by 46.0% on an annual basis to reach US$2598.3 million in 2022, which is approximately ₱143.2 billion.

The study, which is the Philippines NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022, revealed that the country’s NFT industry was foreseen to maintain its growth over the forecasted period. It also cited an expected compound annual growth rate (CAGR) of 32.6% for the span of 2022–2028. 

Moreover, the report disclosed that the Philippine NFT Spend Value is set to increase and reach US$12796.4 million (~₱705 trillion) by 2028.

The high literacy rate in the Philippines is expected to drive market growth

Citing the high literacy rate in the country, the researchers noted that Filipinos have been one of the early adopters of new and emerging technology such as social media platforms and now cryptocurrency and blockchain:

“This consumer behavior has driven the growth of the NFT market in the country and is expected to further drive the growth over the next three to four years. As NFT awareness continues to grow in the country, the demand for NFTs is going to increase among the Filipinos, and if the NFT players can conduct workshops, exhibitions, and events to promote NFTs and spread awareness, the market can record strong growth over the next three to four years in the Philippines.” 

NFT events and webinars 

Thus, the activeness of Filipinos in spearheading and attending NFT events and webinars is one of the key factors that drive the awareness and growth of the market in the Philippines

One of these is the two-part webinar conducted by Union Bank of the Philippines (UnionBank) in collaboration with a non-profit Center for Art, New Ventures and Sustainable Development (CANVAS.PH). The event aimed to help artists, buyers, and collectors of digital art gain a better understanding of how the tokens work and how they can become a part of the NFT market. (Read more: UnionBank Collabs with Canvas.PH to Help Artists, Collectors Explore NFT Space)

Recently, the first leg of Shell Petroleum Corporation’s 55th National Student Art Competition (NSAC) Virtual Art Interact highlighted adopting multimedia, NFTs, crypto art, and other digital innovations as the next step to creativity. (Read more: Petroleum Firm Shell Inaugurates 55th National Student Art Competition, Promotes NFT, Crypto Art, Digital Adoption)

Last September, well-known artists in the NFT space attended the Albay Multimedia Arts Convention (AMAC) featured NFTs to “explore the intersection of art and technology in the biggest event celebrating creativity in the Bicol Region.” (Read more: lbay Multimedia Arts Convention to Happen on October 8)

Check out the upcoming web3-related events curated by BitPinas:

NFT-gaming phenomenon

The research also stressed that “NFT-based games have driven the growth of the NFT market in the country over the last 12 months and are expected to further drive industry growth from a short- to medium-term perspective.”

Highlighting the mini-documentary on YouTube called “Play-to-Earn” by the crypto consulting firm Emfarsis and gaming firm Yield Guild Games that was published in May 2021, the researchers emphasized that it has triggered the landslide of several Filipinos across different age groups and demographics that started playing the game. (Read more on: This Documentary Perfectly Captures the Play-to-Earn Phenomenon in the Philippines)

According to the comparison and information service platform Finder.com, 32% of Filipino internet users currently own NFTs. The study was conducted across 20 countries, and 28,000 people participated in an online survey to compare NFT ownership, revealing the Philippines as the top country for adaptation of NFT. (Read more: There are More NFT Owners in the Philippines Than Anywhere Else)

NFT in the Philippines

Consequently, according to study conductor ResearchAndMarkets.com, the collaboration between Luis Buenaventura, one of the first Filipino NFT artists, and media personality Heart Evangelista in 2021 was the first and the trigger for “a shift in the nascent but growing NFT industry in the Philippines.”

“Notably, this was the first time someone from the local entertainment industry, with 9 million followers, entered the NFT space,” the firm noted. 

Further, it disclosed that the collaboration was part of a social experiment to see where the Philippines’ NFT market stood when the global NFT industry recorded strong growth. 

Evangelista minted two tokens, Pluviam and Desiderantium—the paintings she made during the pandemic; aside from the touch of Buenaventura, the paintings include music from Rodel Colmenar, musical director of the Manila Philharmonic Orchestra. Pluviam was sold for 10 WETH (~₱2.1 million in 2021), while Desiderantium was bought for 7.350 WETH (2021 value:  ~₱1.6 million). (Read more: Heart Evangelista Releases Her NFTs on OpenSea)

Following her venture, other Filipino celebrities and media personalities also entered the space such as P-Pop Groups BGYO and BINI; artists Nadine Lustre, Pia Wurtzbach, Kris Lawrence, Verlin Santos, Yassi Pressman, and the Norwood siblings, Kuh Ledesma, Michael V., and E-head guitarist-turned-painter Marcus Adoro

Traditional artists have also joined the NFT wave in 2022. Through the blue-chip NFT launchpad ScarletBox, the unfinished artworks of the late national artists Abdulmari Imao and Jose Joya were completed by their younger, second-generation counterparts and launched as NFTs in the 2 Legends x 2 Generation collection. 

The collection was officially launched last July. Scarletbox also released its long-awaited collection of profile pictures (PFP) NFTs of Philippine national artist and cartoonist Larry Alcala in November. Even physical galleries are now getting into the NFT art scene, such as Galeria Paloma.

Even boxing legend Manny Pacquiao has been active in his NFT ventures. Just recently, he announced his collaboration—his 4th NFT venture—with NFTOne, a Tron-based NFT marketplace, and START, an NFT marketing company. (Read more: New NFT Project? Pacquiao Partners with NFTOne Marketplace, START)

Aside from individuals, Philippine organizations are also getting into space, starting with the government organization National Book Development Board (NBDB) which made the Philippines the first ever country to release an NFT storybook, The Last Moon, at Frankfurt Book Fair (FBF), the oldest and largest book fair in the world. 

Following it were pageant organizations Miss Universe Philippines and Miss World Philippines; graphics firm Team Manila; hobby club La Union Surf Club (LUSC), Mask on Buttons, Titik Poetry, graphics novel Trese, telecommunications firm Globe, social enterprise Kadama, classic comic Kenkoy, singing competition Idol Philippines, visual arts fair ManilART, and many others.

There is also an NFT game being developed here in the country, Anito Legends, a roguelike auto-battler game based on Philippine folklore. 

“Over the last 12 months, the NFT adoption has surged significantly in the country. As more and more people discover how blockchain technology can be used to disrupt traditional industries. The publisher expects more local and global firms to conduct NFT-focused events in the country over the next three to four years, which will drive the awareness and growth of the overall market from the short to medium-term perspective,” the researchers wrote in a statement.

This article is published on BitPinas: Despite Bear Market, A ₱140B Growth in NFT Industry is Expected — Report 

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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