The nonfungible token (NFT) market went big in 2021, getting the attention of renowned names across various spheres of life. As a result of the NFT craze, the global NFT market reached a valuation of $17.6 billion in the past year.
Merger and acquisition (M&A) deals of NFT and game finance (GameFi) firms gained the most attention in the first half of this year. Data compiled by The Block indicates that NFT-related firms are constantly establishing their presence in crypto deals. Notably, 38% of NFT and GameFi M&A deals happened in the year’s first two quarters.
NFT And GameFi M&A Deals Surge In Q1 And Q2 2022
Citing a report published by The Block Research, there have been a total of 53 M&A deals in GameFi and NFT since 2013. Nearly 20 of them were in 2022 Q1 and Q2. While 8 deals were struck in the first quarter, a high of 12 deals was recorded between April and June.
The highest recorded deal was in the second quarter, featuring NFTs and GameFi. Specifically, it was OpenSea’s acquisition of NFT aggregator Gem for $238 million.
Furthermore, the Q1 and Q2 deals represent the biggest boost in M&A deals in both the NFT and GameFi sectors. Stating its mission to bring in more NFTs power and potential to more people around the world, OpenSea stated that it acquired Gem to “invest in the future of the pro community.”
OpenSea continued:
“After the acquisition, Gem will continue operating independently from OpenSea as a stand-alone product and brand. The Gem you know and love won’t change; and over time, we’ll bring key Gem features to OpenSea to make buying NFTs seamless and delightful for every experience level.”
Interestingly, M&A deals in these sectors surged at a time the NFT hype had cooled. The NFT sector went big in 2021, catching the attention of renowned names across many spheres of life. As a result of the NFT craze, the global NFT market reached $17.6 billion last year. The 2021 record represented a 21,000% growth over the market’s worth of around $82.5 million in 2020.
Despite the transaction volume of these NFTs, the hype remains, and many think that the market is here to stay in the long term. The incredible explosion has made NFTs the foundation for most projects that are expected to launch in the coming 12 months. Furthermore, the global NFT space is projected to reach $21.33 billion this year.
GameFi Contributes To NFTs Growth
GameFi also underpinned NFT development by introducing play-to-earn (P2E) games powered by a blockchain. Players of these games earn in-game NFT assets as rewards. Examples of the P2E games include ‘My Neighbour Alice’ and ‘Axie Infinity’.
Players can transfer their NFT to sell and trade on a marketplace. Apart from earning in-game NFT assets as rewards, players can also make real money. Some of the top projects in the pipeline that seem ready to impact the gaming sector in 2022 include Chosen Ones, Decentraland, and Silks. Others are The Sandbox and Gods Unchained.
