The Rising Popularity of NFTs: Survey Reveals Utility and Long-Term Profit as Top Reasons for Purchasing

04/11/2023 08:56 • Tech Trends • 78 views

According to a survey conducted by CoinGecko, utility and long-term profit have been listed as the top reasons for purchasing NFTs. The report found that the majority of people are considering the practicality provided by the NFT series and the benefits of holding tokens before purchasing. Over 77% of respondents stated that using NFT for its “expected function” has a certain degree of importance among the 11 listed reasons for purchasing NFT. However, 15.7% of people answered that they have a “neutral attitude” towards utility, while 6.7% believe that it is “not important” in the decision-making process before purchasing NFTs.

Survey: 77% of respondents purchase NFTs for practicality and long-term profit

Introduction

Non-fungible tokens (NFTs) have taken the art world by storm, with unique digital assets fetching millions of dollars at auctions. However, what motivates people to purchase NFTs? According to a survey conducted by CoinGecko, utility and long-term profit have emerged as the top reasons for purchasing NFTs. In this article, we will delve deeper into the survey findings to understand the factors driving the popularity of NFTs.

Understanding NFTs

Before we dive into the survey results, let’s briefly understand what NFTs are. NFTs are unique digital assets that are authenticated on a blockchain. Unlike fungible tokens like Bitcoin or Ethereum, each NFT is one-of-a-kind and non-exchangeable. NFTs can represent anything from artwork and music to tweets and memes.

Survey Findings

The CoinGecko survey received responses from over 1,300 people who had purchased NFTs. The survey asked respondents to rate the importance of various factors that influenced their decision to buy NFTs. Here are the key findings:

Utility

Over 77% of respondents stated that using NFT for its “expected function” has a certain degree of importance among the 11 listed reasons for purchasing NFT. This means that most people are considering the practicality provided by the NFT series and the benefits of holding tokens before making a purchase decision.

Long-Term Profit

Nearly 57% of respondents said that they bought NFTs for long-term investment purposes. Given the surge in NFT prices in recent months, it is not surprising that people are looking at NFTs as a potential investment avenue.

FOMO

Fear of missing out (FOMO) was also a significant factor, with nearly 37% of participants stating that they bought NFTs because others were doing it. This highlights the importance of hype and social proof in driving the demand for NFTs.

Emotional Attachment

Around 10% of respondents said that they purchased NFTs because of emotional attachment to the artwork or artist. This suggests that collectors and art enthusiasts are a significant segment of NFT buyers.

Other Factors

Besides the above factors, respondents also cited other reasons for purchasing NFTs, such as supporting artists and creators (9.5%), uniqueness (9.2%), and curiosity (8.3%).

Conclusion

The survey findings reveal that while NFTs have become synonymous with high-priced art sales, most buyers are motivated by the utility and long-term profit potential of NFTs. Interestingly, the emotional attachment to artwork or artists is a relatively minor factor driving the popularity of NFTs. As the market for NFTs evolves, it will be interesting to see how these factors will shape the future of digital asset ownership.

FAQs

1. What are NFTs?
– NFTs are unique digital assets that are authenticated on a blockchain. They represent anything from artwork and music to tweets and memes.
2. Why are people buying NFTs?
– According to the CoinGecko survey, people are buying NFTs primarily for their utility and long-term profit potential.
3. How does FOMO influence NFT purchases?
– Nearly 37% of survey respondents stated that FOMO was a significant factor in driving their NFT purchases, highlighting the importance of hype and social proof in the NFT market.

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