CoinGecko: Five sets of interesting data conclusions from the NFT “census”

In August 2021, the total NFT transaction volume peaked (over $5 billion), kicking off the “NFT Summer”. The market has declined slightly since then, but NFT remains one of the hottest buzzwords and continues to make headlines both inside and outside the crypto world.

NFTs are polarizing. A small number pledged to believe in its underlying technology, more opportunists tried to capitalize on it, and others spoke out in this new digital age. So, how do people really feel about NFTs?

CoinGecko conducted an “NFT Poll” on Twitter (871 samples collected) to gain a deeper understanding of the profiles of players who own NFTs, including their behaviors, motivations, tendencies, preferences, knowledge and NFT-related cognition. Below are five key findings.

1. The majority of respondents are from the Asia-Pacific region and are in the 18-30 and 30-50 age groups; 72% of them have NFTs, and more than half have 5 or more NFTs.

CoinGecko: Five sets of interesting data conclusions from the NFT "census"

Among the respondents, 30-50 years old accounted for 45.2%, and 18-30 years old accounted for 43.6%.

Geographically, NFT adoption was highest among respondents in Asia Pacific at 38.8%, similar to our previous Axie Infinity survey. This was also confirmed by another independent survey, which also found that the Philippines, Thailand and Malaysia were the main adopters of NFTs. Europe is a close second with the second largest region (31.7%), while North/South America is a distant third (18.3%).

2. Metaverse/gaming NFTs are the most common type of NFT, with half of the respondents participating in the Metaverse before.

CoinGecko: Five sets of interesting data conclusions from the NFT "census"

NFTs belonging to the Metaverse/game genre accounted for 35.8%, followed by PFP NFTs with 27.4% and crypto-art NFTs with 25.3%.

About half of the respondents had participated in the Metaverse before, and only 20% of them were classified as “regulars.”

With the Metaverse expected to be an $800 billion market in the next 2 years, gaming seems to be the most likely entry point for NFTs (and other cryptocurrencies) to most people.

3. Flipper (Shark) holds the highest proportion of NFTs at 42%, most cryptocurrency portfolios (70%) only hold 0-25% of NFTs, and less than half of respondents profit from trading.

CoinGecko: Five sets of interesting data conclusions from the NFT "census"

In terms of purchase motivation, “buy low and sell high” is the driving force for NFT purchases, accounting for 42.2%; the HODL mentality of “collecting” and “for the utility of NFTs” accounts for about 50%. (This is related to “Have you ever sold NFTs”. The proportion of questions is consistent, with only half of the NFTs answering “yes”.)

Less than half of the respondents (43%) profited from NFT trading, while 23% chose to continue holding and did not consider profiting from NFTs.

Assuming we only consider the ratio between “yes” and “no”, about 57% of traders who “choose not to hold” (non-HODLing) profit in NFTs, which is probably most NFT veterans who are proficient in trading logo.

Interestingly, NFTs make up only a small portion of most crypto portfolios, with nearly 70% of investments containing only 0-25% NFTs.

4. The desktop is the first choice for trading and minting NFTs, while most respondents look for new projects on Discord/Twitter and track their portfolios through wallets.

CoinGecko: Five sets of interesting data conclusions from the NFT "census"

60% of NFT users prefer to mint/trade NFTs on PC, only 21% use mobile devices. The dominance of the PC side may be due to its advantages in manipulating the time-sensitivity of NFT minting/transactions, especially when wallet mobile app operations are still less smooth compared to PC apps.

Over 60% of users track new projects via Discord and Twitter, and information on these projects is fragmented. Still, Discord and Twitter seem to be the best places to stumble upon new projects. Aggregator platforms such as NFT analysis tool Rarity Tool exist, but usage is low (4.1%), which may be due to lag time for updates (differences in early access whitelists), or poor coverage.

Over half of users track NFT portfolios through the wallet interface, rather than more structured methods (e.g. Portfolio Manager, Excel).

5. Nearly 40% of respondents are most interested in floor price when trading NFTs, with half of them citing current/future utility as the main reason for HODLing.

CoinGecko: Five sets of interesting data conclusions from the NFT "census"

When asked about the factors that motivated them to trade/buy NFTs, 38.5% of respondents believed that “floor price” was the most important. Again, this is in line with our previous question about NFT transaction motivation, that about 40% of NFTs choose “flip & earn” (“buy low and sell high”). Floor price is a commonly used measure to measure the affordability and potential upside of an NFT series.

The proportion of NFTs purchased for rarity and celebrity endorsement was 30% and 18%, respectively.

In addition to profit, half of the respondents (50.9%) believe that the current or future utility of NFTs is their main motivation for choosing HODL, only 23% and 21.8% choose “strong community” and “artistic value/emotional sustenance” . According to our survey, NFT owners seem to value those NFTs that are deemed to provide the most “utility” value over intangible qualities such as aesthetics. Recent NFT projects also tend to have some form of utility (e.g. exclusive access, future airdrops) rather than just “jpegs on chain”.

in conclusion

It is interesting to understand the trading motivations of NFT players. Gaming and Metaverse NFTs were thrust into the spotlight by Axie Infinity as the most popular type of NFT. Most respondents identified themselves as speculators looking to make quick profits from NFTs. But at the same time, the majority (51%) still expressed interest in holding, either for collection or potential utility. All in all, this is not a purely speculative market.

In the first quarter of 2022, the volume of NFT transactions declined, but at the same time, RTFKT and the Bored Ape Yacht Club forged a large partnership that made a noticeable leap. At this point, the ultimate direction of NFTs is still everyone’s guess. But just like other cryptocurrencies, the NFT world is still rife with fraud and price volatility. For those of you who are considering a foray into NFTs, we urge you to always DYOR (do your own research).

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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