According to a recent study by CoinGecko and Blockchain Research Lab, most individuals buy NFTs because of their usability and long-term profit potential.
- According to a survey conducted by CoinGecko and Blockchain Research Lab, utility and long-term gains are the main drivers of NFT purchases.
- Using an NFT for its “intended function” was vital, according to more than 77% of respondents, before making a purchase.
- The possibility of making long-term gains from the sale of NFTs was valued by slightly more than 76% of respondents.
Recent Surveys
NFTs, or non-fungible tokens, have gained popularity recently in the cryptocurrency community after several of them reached multi-million-dollar prices. Yet, there is disagreement over the motivations behind NFT purchases. The Blockchain Research Lab and CoinGecko recently surveyed to understand better the drivers driving NFT purchases. 343 NFT and cryptocurrency consumers responded to the study, ranking their top motivations for purchasing NFTs in a list.
Top Reasons for NFT Purchases
The majority of NFT buyers, according to the CoinGecko survey, acquire them for utility and long-term gains. Remarkably, 77% of respondents stated that the value provided by an NFT collection and the advantages of token ownership had a significant role in their purchase choice. In contrast, 6.7% of respondents felt utility was utterly unimportant.
With over 76% of respondents reporting that they were concerned about selling their NFTs at a higher price in the future, the possibility of long-term profits was also a significant consideration. This is not shocking, given that several NFTs have already sold for millions of dollars. The NFT market, however, has fallen precipitously along with the larger crypto market. Despite this, it is still anticipated that the NFT business will grow to a $230 billion market by 2030.
Other Reasons for NFT Purchases
The survey also showed that consumers purchase NFTs for factors outside utility and long-term gains. The opportunity to become a stakeholder in a decentralized autonomous organization was the third most important reason consumers purchased NFTs, accounting for 72.9% of all purchases. This demonstrates that NFTs entail more than simply speculation and involve community involvement and involvement in decentralized projects.
NFT purchases also ranked highly for passion for technology, community involvement, and the products or artwork of an NFT collection. However, just 59.5% of respondents indicated that their top reason for purchasing was “disrupting established institutions or industries,” which was the reason that came in last on the list.
Implications for the Future of the NFT Market
The results of the CoinGecko poll have several ramifications for developing the NFT sector. First, the NFT market is more than just a bubble that will eventually bust, given that people purchase NFTs for utility and long-term gains. Instead, it is a market with practical applications and room for expansion.
Secondly, the fact that people purchase NFTs to participate in decentralized projects demonstrates that these tokens are more than just speculative investments; they can also be used to promote decentralized projects. This is encouraging news for the crypto community, which has been working to promote decentralized systems as an alternative to centralized ones.
Conclusion
The CoinGecko survey has provided some insight into the drivers of NFT purchasing. It has been demonstrated that while there are many reasons why individuals purchase NFTs, utility and long-term financial gain are the most significant ones. The survey’s results indicate that the NFT market has real use cases and growth potential, suggesting that it is not just a speculative bubble. NFTs can be used to support decentralized initiatives, which is good news for the crypto community, as seen by the fact that people purchase them to participate in decentralized projects.
