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The non-fungible tokens (NFT) market is booming. Several companies have their fingers in the burgeoning space for traders to invest in. The consensus is that our lives will become more virtual in the coming years, and perhaps everything in the metaverse could be turned into an NFT token. Therefore, investors are always looking for the best NFT stocks to ride the tailwinds in the sector.
NFTs are virtually tradeable items on the blockchain, including digital artwork, selfies, music, and whatnot. As mentioned earlier, the concept of an NFT continues to evolve and is about to get much bigger with the growth in the metaverse.
Not only will the market survive, but it will also likely become a bridge to the potentially trillion-dollar metaverse industry. According to Jefferies, the NFT market could be worth a whopping $80 billion by 2025.
EBAYeBay$46.84FNKOFunko$23.48TKATTakung Art$1.6613COINCoinbase Global$67.93OCGOriental Culture Holding$2.35DLPNDolphin Entertainment$4.49NFTZDefiance Digital Revolution ETF$7.27eBay (EBAY)
Source: BigTunaOnline / Shutterstock.comThe consensus among investors is that eBay (NASDAQ:EBAY) is at a bit of a crossroads. Naturally, with the pandemic fade, its business has normalized and seems significantly less attractive compared to a couple of years ago. However, eBay has effectively used the pandemic boost to foray into several profitable verticals in hopes of reimagining its platform.
Last year, it tapped into the NFT craze to bolster its collectible-focused initiatives. Moreover, it also launched a vault service that effectively protects the physical assets of its customers. Trading cards were a huge hit during the pandemic, and their popularity continues to grow incredibly.
Most recently, the company acquired KnownOrigin, considered one of the first and largest NFT marketplaces. The partnership will likely attract a wave of NFT collectors and creators to eBay. I expect similar announcements to come in the coming months as eBay adds new block-chain-specific capabilities to its platform.
Funko (FNKO)
Source: Lutsenko_Oleksandr / Shutterstock.comToy manufacturer Funko (NASDAQ:FNKO) has established itself as a growth juggernaut in the pop culture products business.
It has exhibited an incomparable ability to source and monetizes content. Moreover, no single brand dominates its revenue stream, which makes it a highly diversified business that’s benefitting immensely from the rise in entertainment and culture.
Funko extended its popular pop culture platform into digital assets last year with the acquisition of TokenWave. Token Wave attracts over 100,000 daily visitors on its platform, which enables them to showcase and track NFTs.
Funko stated that its first few token offerings sold out in minutes. Most recently, it acquired collectibles business Mondo, which it would effectively integrate with TokenWave. As we advance, these moves could add plenty to Funko’s top-line growth.
Takung Art (TKAT)
Source: KWstudio / Shutterstock.comTakung Art (NYSEAMERICAN:TKAT) is a Hong Kong-based online marketplace for selling and trading artwork. Its platform gives access to a massive art trading market connecting a diverse group of investors. TKAT stock gained immensely last year on speculation by investors that it might jump onto the NFT space.
It seemed like an ideal platform for selling NFTs, and it finally rolled out a crypto-centric website to kick start its NFT marketplace business. Since its launch, there have been over 60 products listed on its platform and over 107 new users, generating approximately 40 transactions.
According to its CEO Kaungtao Wang, “The launch of our own NFT platform and completion of transactions on the platform solidified our business strategy. We will further promote our platform in order to further stimulate the sustainable growth of our business.”
Coinbase Global (COIN)
Source: rarrarorro / Shutterstock.comCoinbase Global (NASDAQ:COIN) is the top Crypto trading and investing platform. Its userbase has climbed at an astronomical rate from 22 million in 2018 to 56 million last year.
The platform has been hugely successful and has made crypto trading much easier. Coinbase recently jumped on the NFT bandwagon and released a specialized marketplace.
Its NFT marketplace currently has a limited number of collections and users. However, it’s a major step in culminating a bigger vision of becoming the go-to digital platform for crypto investors.
Commenting on the launch of Coinbase’s NFT platform, Chief Executive Officer Brian Armstrong said that NFTs have the potential to become an even bigger business than crypto trading down the line.
Oriental Culture Holding (OCG)
Source: ShutterstockOriental Culture Holding (NASDAQ:OCG) is a Chinese eCommerce platform for collectors, art dealers, and artists to sell their paintings, collectibles, and other physical items. Its revenue doubled last year to an impressive $37.6 million. Moreover, its active traders increased to 159,000 from 77,000 in 2020.
It recently announced it had inked a contract with Heng Well Information Technology to collaborate on blockchain-based products, especially in NFTs. Moreover, Oriental’s Hong Kong subsidiary will provide services to make NFTs for artwork and cultural collections.
Also, its eCommerce will also be upgraded to facilitate auctions and trading of NFTs.
Dolphin Entertainment (DLPN)
Source: Ingus Kruklitis / Shutterstock.comDolphin Entertainment (NASDAQ:DLPN) is perhaps one of the more fascinating NFT plays. It operates a marketing and content production company that caters to some of the leading enterprises across various industries.
Its management decided to usher in the next phase of growth for the company with the launch of its two initiatives. A big part of these plans is NFT drops, where incremental costs are low, and revenues are almost pure profits for the business.
It has partnered with various businesses and private entities to launch NFT collections. Last year, it partnered with crypto exchange FTX.US to develop NFT marketplaces for top sports and entertainment brands.
Moreover, Dolphin’s Web3 marketing and consultancy business, We Come In Peace (WCIP), announced the development of a comprehensive slate of NFT projects for its metaverse clients. The list goes on regarding DLPN’s initiatives in the NFT space, which it expects to drive substantial revenues for the foreseeable future.
Defiance Digital Revolution ETF (NFTZ)
Source: ded pixto / ShutterstockDefiance Digital Revolution ETF (NYSE:NFTZ) is one of the best ways to play the growing NFT and blockchain market at less cost.
Investing in ETFs allows investors to effectively cut out the middle man and gain a share of some of the most profitable businesses in a particular sector. The NFTZ ETF holds stockholdings of some of the biggest names in the NFT, blockchain, eCommerce, and related verticals.
Moreover, it offers an expense ratio of 0.65%, and its investments in the leading top-10 holdings are close to 50%. Some of the stocks it invested in include eBay, Coinbase, Hut 8 Mining, and others.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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