Although NFTs have been part of the cryptocurrency market since 2014, interest and adoption have increased rapidly in the last two years. At its peak, in August 2021, the total volume of NFT trading exceeded $5 billion, kicking off what became known as the “summer of NFTs.”
According to a report by Coingecko, the NFT market is now expected to move over $800 billion in the next two years. The report, which used mostly Asia-Pacific investors, highlighted that out of 871 respondents, around 72% of them already own NFT(s), with more than 50% reporting 5 or more.
As for investors, the report indicated a balance between generations, suggesting that 43.6% of NFT investors surveyed were between 18 and 30 years old and 45.2% between 30 and 50 years old.
While the bulk of the NFT market seemed to be concentrated in popular collections like Bored Ape Yacht Club (BAYC) and CryptoPunks, 35.8% of respondents said they were interested in NFTs tied to play-to-earn games and the metaverse, and 25% said they preferred art NFTs.
“The metaverse sector is projected to move close to $800bn over the next 2 years, with gaming appearing to be the most likely entry point into the NFT market,” highlighted the report.
“Our respondents have indicated that “flip & earn” was the main motivation behind their NFT purchases, although 2/3 of the respondents indicated that NFTs were only
Although TeleGeography data indicates that there are already more than 7.1 billion active mobile devices worldwide, the PC remains the preferred choice for NFT trading and minting, with 60% of investors. The mobile remains behind with just 21% of responses. “This can be attributed to the ease of using a PC to navigate time-sensitive NFT trades and mintages,” the report stresses.
When it comes to following new or upcoming NFT projects, 60% of those surveyed said they preferred to use Discord and Twitter. The minimum price also seemed to be important for the perception of value. The report revealed that when evaluating NFTs before purchasing, the majority of respondents (38.5%) were interested in the minimum price and only 23% and 21.8% selected “strong community” and “artistic value/ attachment”, respectively.
On the other hand, most investors in the market said they were not interested in selling their NFTs. More than 50% of the respondents highlighted that they have a HODL mindset and see a future where non-fungible tokens could be important elements in games. Even with all the hype, NFTs only make up a small part of most cryptocurrency wallets, with 70% of respondents reporting that they only make up 0-25% of their crypto assets.
Ethereum remains the dominant chain for NFTs among those surveyed, at 46.3%, according to the report. Second is found Polygon with 13.8%, followed by Sunshine with 13.5%. Other smart contract platforms together accounted for 26.4% of NFTs traded by Coingecko respondents.
As for the markets, the data confirmed the dominance of OpenSea, which was responsible for 58.7% of trading activity. the second ranked, Solanamart had a market share of just over 10%, while LooksRare had less than 4%.
“Interestingly, Crypto.com, VEVE Official and Immutable X are some of the most cited examples parked under ‘Other’ by respondents, perhaps alluding to their growing prominence. On the other hand, LooksRare and X2Y2, despite their generous bonus programs incentives, failed to create adherence despite initial success,” Coingecko noted.
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