Over 50% of respondents indicated that they have a HODL mentality and see a future where non-fungible tokens can be important elements in games.
While non-fungible tokens (NFTs) have been part of the crypto market since 2014, interest and adoption has grown rapidly over the past two years. At its peak in August 2021, total NFT trading volume rose to over $5 billion, ushering in what was briefly known as “NFT Summer.”
According to a report by CoinGecko, the NFT market is expected to move over $800 billion over the next two years. The report, which primarily included investors from the Asia-Pacific region, highlights that out of 871 respondents, approximately 72% already own at least one NFT, with more than 50% of them saying they own five or more.
In terms of investors, the report pointed to a generational balance, with 43.6% of NFT investors surveyed being between the ages of 18 and 30, while 45.2% were between the ages of 30 and 50.
While most of the NFT market seems to focus on popular collections like Bored Ape Yacht Club (BAYC) and CryptoPunks, 35.8% of respondents said they were interested in NFTs related to games and the Metaverse. , and 25% said they prefer the art of NFT.
“The Metaverse sector is expected to move approximately $800 billion over the next two years, with games appearing to be the most likely entry point into the NFT market,” the report highlights.
“Our respondents indicated that “flip and earn” was the top motivation for their NFT purchases, although 2/3 of respondents indicated that only NFTs
Although TeleGeography data suggests that there are already more than 7.1 billion active mobile devices worldwide, PC remains the preferred choice for NFT trading and mining with 60% of investors. Mobile lags behind for only 21% of the answers. “This can be attributed to the ease of use of a PC to navigate Time Mints/NFT trades,” the report points out.
When it comes to keeping track of new or upcoming NFT projects, 60% of respondents said they prefer Discord and Twitter. The minimum price also proved to be important for the perception of value. The report showed that when evaluating NFTs before purchasing, the majority of respondents, 38.5%, were interested in reserve price, with only 23% and 21.8% choosing “strong community” and “artistic value/affinity,” respectively.
On the other hand, the majority of market investors have stated that they are not interested in selling their NFTs. Over 50% of respondents indicated that they have a HODL mentality and see a future where non-fungible tokens can be important elements in games. Despite all the hype, NFTs only make up a small fraction of most crypto portfolios, with 70% of respondents saying they only make up 0-25% of their crypto portfolios.
According to the report, Ethereum remains the dominant network for NFTs among respondents at 46.3%. In second place was Polygon with 13.8%, followed by Solana with 13.5%. Other smart contract platforms combined accounted for 26.4% of NFTs traded by CoinGecko respondents.
In terms of marketplaces, the data confirmed the dominance of OpenSea, which accounts for 58.7% of trading activity. Solanart, which took second place, had just over 10% of the market, while LooksRare had less than 4%.
“Interestingly, Crypto.com, VEVE Official, and Immutable X are some of the most cited examples parked in the “Other” section by respondents, perhaps indicating their increasing importance. On the other hand, LooksRare and X2Y2, despite their generous incentive programs, failed to catch on despite their early success,” CoinGecko noted.