3 - 4 minute read
A new report published by CoinGecko and the Blockchain Research Lab has found that utility and long-term profits are the top reasons for people buying non-fungible tokens (NFTs). The report surveyed 343 NFT and crypto users between December 2022 and January 2023, with over 77% of respondents citing the intended function of an NFT and the benefits of holding the token as the main reasons for purchasing an NFT. Additionally, just over 76% of respondents cited the potential for long-term profits as a crucial factor in their decision-making process.
Despite the increasing popularity of NFTs over the past few years, the market has experienced a severe downturn in correlation with the broader crypto market. However, the NFT market is projected to be worth $231 billion by 2030, indicating potential for long-term growth.
Other high-ranking reasons for purchasing NFTs included enthusiasm for technology, community involvement, and interest in an NFT collection’s business or artwork. On the other hand, “disrupting established structures or industries” ranked as the least important reason for buying NFTs.
Traders interested in NFTs should consider the potential for long-term profits as well as the intended function of the NFT when making purchasing decisions. Additionally, keeping up with the latest trends and developments in the NFT market could be crucial for identifying potential opportunities and avoiding risks.
The Bottom Line
The CoinGecko report suggests that traders should prioritize utility and long-term profits when considering investing in NFTs, with enthusiasm for technology and community involvement also important factors to consider. As the NFT market is projected to be worth $231 billion by 2030, traders can expect continued growth and new opportunities in the NFT space.