It may seem like NFTs are everywhere, but they only make up 1% of the total cryptocurrency market.

Whether promoted by celebrities like Justin Bieber or Heidi Klum, NFTs seem to be everywhere these days, but data shows that they make up just 1% of the overall cryptocurrency market.

According to an analysis of NFTGo data by crypto information and research firm Messari, the non-fungible tokens have a total value of about $16 billion, part of the roughly $2 trillion ecosystem of thousands of digital assets. That's even with some million-dollar sales.

"The market may be saturated in some respects, but it can also be small compared to what it will be in a few years," said Mason Nystrom, senior research analyst at Messari. "I expect this industry to grow significantly over the next five years and that's because NFTs can be anything, it's just a file standard."

Not surprisingly, avatar NFTs make up almost half of the total at 46%. Popular collections include CryptoPunks and Bored Ape Yacht Club, owned by Serena Williams and Jimmy Fallon. Some NFTs give collectors access to exclusive social clubs and are often anchored as profile pictures on social media. Notably, Twitter recently gave its users the ability to connect their digital wallets to the platform to display NFT as their avatar.

Nystrom, which authored a report based on the data, expects NFTs with higher utility beyond social value to gain more traction, with incentives such as cash flows and other monetary benefits. At this stage, most of the income generated in the asset class comes from exchanging tokens at a higher price than the original purchase price.

"In the past few months, founders and projects have gotten smarter and have tried to add some real value and some real use cases to an NFT," like seed funding, said Gritt Trakulhoon, investment analyst at Titan Global Capital Management, USA Inc. "Most activity and investments will not only take place in the profile pictures of the NFTs.”