• The joint research by Blockchain Research Lab and CoinGecko on the benefits of buying Non-Fungible Tokens (NFTs) revealed that many people purchase these tokens for long-term profits and utility.
• The survey collected 343 responses from December 2022 to January 2023, showing that most people buy NFTs for their intended function.
• Long-term profit is also a major factor in NFT purchases; 76% intend to sell their tokens later at a higher price.
Why People Buy Non-Fungible Tokens
A new Coingecko and Blockchain Research Lab study has revealed why people buy NFTs. The researchers discovered that many people purchase these tokens for long-term profits and utility. Usually, NFTs enable holders to lay claims on their unique items. They allow creators to tokenize real estate, art, collectibles, etc. By creating NFTs of important things, the owner can secure them on the blockchain and sell and trade them efficiently.
Study Respondents Reveal Reasons For Investment In NFTs
Joint research by Blockchain Research Lab and CoinGecko on the benefits of buying Non-Fungible Tokens has shown different reasons people buy NFTs. CoinGecko and Blockchain Research Lab collectively performed the NFT and Crypto Users Survey, collecting 343 responses From December 2022 to January 2023. Out of the 11 outlined reasons for buying an NFT, “Using an NFT for its Intended Function” ranked number one at 77.6%. But still, 15.7% of NFT holders claimed to be neutral about utility, and 6.7% said they didn’t care.
Potential Profit From Investing In NTFS
The second most important factor for buying NFTs is the “Long Term Profit.” Over 76% intended to sell out their NFTs later at a higher price. NFTs are getting more expensive, but their value in the long run might be much higher .The demand for Non-Fungible Tokens is rapidly growing ,and the total market value is expected to hit $230 billion by 2030 .Anyone investing in a long term plan for owning and selling tokens can gain more if they get started now ,especially if the demand for Non Fungible Tokens keeps increasing at this rate in the years to come .
Other Factors Influencing Investment Into NFTS
Other factors include; gaining a stake in DAO ,enthusiasm for technology ,being part of community ,enthusiasm with business model etc., However disrupting established structures or industries was ranked as least crucial factor on list with 59 % of people surveyed agreeing Some changes are anticipated in upcoming few months following recent trends in Non Fungible Token industry .
Major Firms Jumping Into NFTS
Despite dramatic fall of NFTS from their high in january 2022 several big companies still show interest investing into them Major online commerce companies such as eBay have already started trading NFTS also Other tech giants such Microsoft Disney Amazon Sony Warner Music Group AT&T all showed interest investing into non fungible tokens .