According to Research and Markets’ latest report entitled, “Philippines NFT Market Intelligence and Future Growth Dynamics Databook – 50+ KPIs on NFT Investments by Key Assets, Currency, Sales Channels – Q2 2022,” the non-fungible token (NFT) industry in the Philippines is expected to grow by 46% on an annual basis and could reach US$2,598.3 million by the end of this year.
The NFT industry is also expected to grow steadily over the forecast period, recording a CAGR of 32.6% between 2022 to 2028. NFT Spend Value in the country will increase from US$2,598.3 million in 2022 to reach US$12,796.4 million by 2028.
A surge of NFT adoption in PH
The report noted that over the last 12 months, NFT adoption has surged significantly in the country as more and more people discover how blockchain technology can be used to disrupt traditional industries.
Luis Buenaventura II, a pioneering crypto entrepreneur and YGG Pilipinas Country Manager, announced recently that he has collaborated with a celebrity influencer, Heart Evangelista, on a non-fungible token drop. According to Buenaventura, this particular collaboration signals a shift in the nascent but growing NFT industry in the Philippines.
It can be noted that this will be the first time that someone from the local entertainment industry, with at least 9 million followers, had entered the NFT space.
The strategic collaboration between Luis Buenaventura II and Heart Evangelista was part of a social experiment to see where the Philippines’ NFT market stood when the global NFT industry recorded strong growth. The NFT drop included two paintings that Evangelista made during the global pandemic. The artwork was auctioned at OpenSea, a leading global NFT marketplace, fetching P3.5 million and P3 million each.
As NFT awareness continues to grow in the country, the space also attracted a slew of other homegrown projects that promote Filipino culture. One of them is the Philippine National Book Development Board’s creative director for “Frankfurt Book Fair” who, along with Danella Yaptinchay, co-founder of Homegrown, a media company that supports, empowers and harnesses the power of Filipino startups, created the very first Philippine NFT book.
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.
High literacy rate in PH to drive market growth further
The literacy rate in the Philippines is much higher than in other countries globally. Whether it is a cryptocurrency, blockchain, or even on social media platforms back in the time, Filipinos have been one of the earliest adopters of new and emerging technology.
This particular 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.
The Research and Markets study further said, “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, webinars driving awareness and growth of the NFT market in PH
According to the report, as NFT awareness continues to grow, the demand for NFTs is also going to increase among Filipinos. One of the key drivers driving the awareness of NFTs in the country is that several firms, both local and global, are conducting events and webinars in the Philippines.
In March 2022, Union Bank of the Philippines (UnionBank), together with the non-profit Center for Art, New Ventures and Sustainable Development (CANVAS.PH), held a 2-part webinar centered on the NFTs 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.
Similarly, in May 2022, AC Capital, CoinVoice, Asia Token Fund, and Block Tides conducted the first-ever NFT, GameFi, and Metaverse 2022 event at the largest indoor beach club in the Philippines. Filipinos turn to NFT video games to earn income during the global pandemic period in the Philippines
During the global pandemic period, when Filipinos faced hardship because of the lockdowns, many Filipinos turned to playing video games. Notably, the gameplay, such as SkyMavis, created by Axie Infinity, allows players to earn income through NFTs and cryptocurrencies by breeding, battling, and trading digital pets called Axies.
As of May 2021, nearly 60,000 Filipinos were playing the Axie Infinity game in the country.