The NFT sector has gained massive adoption in recent months, and it is expected to grow even bigger over the coming months.
Electronic Arts (EA), one of the leading traditional video game developers, has become the latest entity to discuss the potential of the cryptocurrency and nonfungible token (NFT) space. Although the company is yet to make a move into the NFT space, it is laying the groundwork to ensure it makes a smooth entry.
The firm’s CEO Andrew Wilson discussed NFT’s potential during the company’s quarterly earnings call earlier this week. Wilson said:
“I think the play to earn, or the NFT conversation is still really, really early, and there’s a lot of conversation. And there’s, at some level, a lot of hype about it. I do think it will be an important part of the future of our industry on a go-forward basis. But it’s still early to kind of figure out how that’s going to work.”
Electronic Arts is one of the top video game publishers in the world. It is popular for developing massive gaming franchises, including FIFA, The Sims, Battlefield and Madden NFL. The CEO pointed out that digital trading cards can be very valuable in some of the Ultimate Team modes in games such as FIFA and Madden.
The players can get to collect in-game digital trading cards, making them very valuable. NFTs have become very valuable in the cryptocurrency space and beyond. They have gained adoption in the gaming, movie, music and sporting industries.
In the third quarter of 2021, NFT trading volume surpassed the $10 billion mark for the first time in history. At the moment, Ultimate Team collectibles are locked to each individual game. As such, they cannot be transferred out of the FIFA or Madden in-game ecosystem.
Electronic Arts will have to modify this system if it intends to gain massive adoption within the NFT space. Axie Infinity and The Sandbox allow their NFTs to be freely resold or traded and potentially launched in other games or platforms.